davidI
03-17-2012, 11:24 PM
As many of you know, I'm working on a dissertation in O&G Law right now that is reviewing Foreign M&A in Canada's Energy Industry.
One of the points that I've given some thought to, but have been unable to find much information on, are regulations surrounding the marketing of oil and gas by state-owned enterprises. For example, what's to stop companies like Sinopec, CNOOC, or Sasol from entering long-term supply contracts with Chinese or South African refiners / industry at extremely low prices, reducing the tax consequences in Canada while effectively subsidizing the cost of their energy imports?
I'm not looking for a detailed response - but if anyone has sources for information or put me in the right direction, I'd appreciate it. Maybe it's not an issue at all, but I need to find some sources to argue either why it is, or is not, a concern.
One of the points that I've given some thought to, but have been unable to find much information on, are regulations surrounding the marketing of oil and gas by state-owned enterprises. For example, what's to stop companies like Sinopec, CNOOC, or Sasol from entering long-term supply contracts with Chinese or South African refiners / industry at extremely low prices, reducing the tax consequences in Canada while effectively subsidizing the cost of their energy imports?
I'm not looking for a detailed response - but if anyone has sources for information or put me in the right direction, I'd appreciate it. Maybe it's not an issue at all, but I need to find some sources to argue either why it is, or is not, a concern.