State participation in joint ventures: folly or wisdom on the part of host states?
Igwe Sylvia Chidinma
Petroleum and natural resources in states where they are found in quantum have always been viewed as having myriad significance. It was amongst the sectors that Lenin referred to as the ‘commanding height’ and one which must thus be controlled by the state. The government of such countries are usually caught between their desire to maximize the revenue from the exploitation of their hydrocarbon as well as effectively control its exploitation and attracting as well as sustaining the foreign investment in the sector. For most resource rich states, this control is exerted through direct state participation. This paper is an attempt at answering the question, is state participation really necessary and beneficial to host states?