France’s Oil Industry

Business / April 23, 2015 / No Comments /
An International Business Analysis of the Company, TotalFina Elf.

This paper includes a description of France’s political risk analysis, demographic information, and economic environment and has an in depth discussion about the oil industry in France.
`Since prehistoric times, France has been a crossroads of trade, travel, and invasion. Three basic European ethnic stocks – Celtic, Latin, and Teutonic (Frankish) – have blended over the centuries to make up its present population. There are also Slavic, North African, Indochinese, and Basque minorities. While French is the official and predominant language, several regional dialects and languages are spoken, including Provencal, Breton, Alsatian, Corsican, Catalan, Basque, and Flemish….
Despite France’s limited domestic reserves and production, the French oil industry is an important actor in world energy markets. Major oil assets of French oil companies are located in the North Sea, Africa, and Latin America. French imports come primarily from Saudi Arabia and Norway, followed by the United Kingdom (UK), Iraq, Iran, Nigeria, and Russia. As an example of French politics towards this industry could serve the French oil giant Elf Aquitaine and the Canadian company Bow Valley, which in the spring of 1999 signed a $300-million contract (85% Elf and 15% Bow Valley) to exploit an oil deposit in the Persian Gulf, in Iranian waters. Although, from the point of law, this contract appeared to violate the U.S. Iran-Libya Sanctions Act of 1996, which threatens U.S. sanctions on any country with more than a $40-million project in Iran, no such sanctions had been enacted as of October 1999.`

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