MMM105-Business and Economic Development in Resource Rich Countries

Module Provider: Leadership, Organisations and Behaviour
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Spring term module
Non-modular pre-requisites:
Modules excluded:
Current from: 2018/9

Module Convenor: Prof Yelena Kalyuzhnova


Type of module:

Summary module description:

This module provides students with an understanding of key issues and drivers in business economic development in resource-rich countries. In particular, it highlights the problems facing emerging resource-rich countries seeking to encourage development of their hydrocarbon sector in order to boost economic development. It focuses on opportunities for, threats to, and options facing multinational or multicultural business enterprises (international vertically integrated oil and gas companies) planning to invest in major energy projects in resource-rich countries.


The module will address a range of business and managerial issues in the energy sector for resource-rich countries. The module will also allow students to have an insight into the way institutions and business practices operate in an international and global context in the energy sector. Students will explore the economic impact of the development of the export-orientated sectors in resource-rich countries and will understand the role of commodities in countries’ development.

Assessable learning outcomes:

On completion of the module, students will be expected to be able to:

• Give an account of the causal relationships between various economic, fiscal, political and technological variables, factors and conditions affecting business operations and the behaviour of energy companies.

• Use instruments in order to critically analyse the international environment for transnational investment, foreign economic, cultural and political environments, and their impact on the international oil and gas business.

• Demonstrate a knowledge of the strategies involved in doing business in the energy sector in different types of resource-rich countries.

Additional outcomes:

Students will master the ability to discuss and influence progressive ideas for action towards issues of business and economic development in resource-rich countries. They will then develop the skills to make sense and meaning of the complexity of the business and economic environment in resource-rich economies and will contribute to group ideas on what is possible given the discourse. They will also develop generic skills for accessing and developing ongoing appreciation of issues related to sustainable development.

Outline content:

1. Introduction: how the oil and gas industry operates in resource rich countries.

2. Federalism and the energy sector (Federalism: history and contemporary developments; Division of power in federal state and resource management; Fiscal federalism and development of energy resources)

3. Development of energy resources and socio-economic development (Public Relations in the energy sector; Public hearings and Environmental Impact Assessments of energy projects; Building good community–company relations; Case studies)

4. Principles of sustainable development of energy resources. (World Bank Directives regulating the implementation of bank-assisted projects that have an impact on the land and resources occupied or used by indigenous peoples; Co-management of natural resources: impacts, benefits and agreements)

5. Petroleum revenue management. (Broad range of oil and gas exploration and production activities; Fair share for the state; Progressive taxation; Cost containment; Timing and stability of tax revenues; Federal/regional revenue sharing; Legal framework for resource revenues; Economics of petroleum revenue; Resource rent; The investor’s required rate of return; A ‘marginal’ project; A ‘profitable’ project; Special factors affecting taxable rent; ‘Dutch Disease’: the failure of petroleum wealth to lead to development)

6. Types of the agreements in the petroleum industry. (Duration (exploration, production); Relinquishment; Exploration obligations; Bonuses (signature, discovery, production); Royalty rate; Cost recovery schedule; Depreciation; Profit oil split; Taxation; Domestic market obligations; Investment uplift; State participation)

7. The stages of an oil and gas venture (Acquisition of licence; Exploration, Pre-licence prospecting; Mineral interest acquisition/contracting; Exploration surveying; Exploration drilling; Commercial discovery; Appraisal; Development; Production; Production drilling; Overlap of operations in various stages)

8. Sustainable development and economic growth in resource-rich countries. (Concept and indicators of sustainable development; Accounting for sustainability; Dependency of the economy on resources; Diversification of the economy; Local content concept)

Brief description of teaching and learning methods:

Case studies and individual experience will be used to provide examples of the diversity of the debate. There will be 20 hours of lectures, seminars and discussion.

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 4.5
Guided independent study 175.5
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 50
Project output other than dissertation 40
Class test administered by School 10

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

Multiple choice test (50min) and class essay (60 min) will take place at Week 9 Spring Term.

Game will take place at Week 11 Spring Term.

Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information:

Assessment requirements for a pass:

Reassessment arrangements:
One essay, new topic (3,000 words)

Additional Costs (specified where applicable):

Last updated: 20 April 2018


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