ABSTRACT
This chapter seeks to conceptualize upstream sector policy in the oil industry. It maps out the broader context in which upstream sector policies are chosen by discussing the institutional framework for policy-making as well as the range of commercial and non-commercial objectives pursued by oil producing countries. The chapter theorizes the concept of upstream sector policy by delving into its dimensions and variants, and not least, addresses the tools through which upstream sector policy is "de facto" implemented in oil-rich countries. Given the scarce scholarship on upstream sector policy, such an endeavor is imperative before any further research is undertaken. While sector governance is the result of the institutional arrangements present in the petroleum sector, the upstream sector policy or synonymously, the state's decision over sector participation in the upstream can be seen as consequence of the objectives set for the sector. The extreme form of closure of the upstream sector is "state control", which involves "state ownership" as well.
