Dr. Carole Nakhle, CEO of Crystol Energy and author of Petroleum Taxation: Sharing the Oil Wealth, returned to the Blavatnik School of Government, University of Oxford, to deliver her annual lecture on taxation in the extractive sector. The session formed part of the School’s long-running Executive Course on Oil, Gas and Mining Governance in Emerging Markets, delivered in partnership with the Natural Resource Governance Institute.
From Principles to Practice
The lecture explored the fundamentals of taxation in oil, gas, and mining. Participants engaged in group-based exercises to understand how fiscal regimes operate in different regions. Dr. Nakhle highlighted that while the principles of taxation remain consistent, their implementation is far from straightforward.
She drew on insights from her 2007 book Petroleum Taxation: Sharing the Oil Wealth, which remains widely used in academia and industry. Dr. Nakhle explained that although an “ideal” fiscal regime exists in theory, reality is more complex. A single word in legislation can dramatically alter how revenues are shared between investors and host governments.
Why Details Matter
Dr. Nakhle stressed that headline tax rates tell only part of the story. Two countries may appear to impose similar taxes, yet the impact on project economics and government revenues can be very different. She also noted that some fiscal instruments are not officially labeled as taxes but still function like them in practice.
Engaging a Global Audience
This year’s program brought together participants from more than 16 countries, representing governments, companies, and civil society. Their diverse perspectives enriched the debate and deepened understanding of how taxation affects both industry and national economies. Despite the demanding nature of the course, Dr. Nakhle was pleased to see participants smiling at the end—a reminder that taxation can be engaging when taught with clarity and energy.
Related Analysis
“Energy Security, Affordability and Sustainability: The Grand Alliance“, Dr Carole Nakhle & Ron Beck, Jan 2024
“COP28: A ‘historic’ climate deal?“, Dr Carole Nakhle, Jan 2024
