Journal

Volume 42 | Number 1 Fall 2006

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Islamic Finance Opportunities in the Oil and Gas Sector: An Introduction to an Emerging Field

by Christopher F. Richardson

Summary

  1. Introduction

  2. Fundamentals of Islamic Finance and Applicability to Oil and Gas Transactions
    1. Fundamental Principles of Islamic Finance
      1. Riba
      2. Avoidance of Vice and Encouragement of Financially Sound Investing
      3. Gharar
      4. Participation in the Performance of Assets
    2. Types of Islamic Finance Structures and Applicability to Oil and Gas Deals
      1. Ijara
      2. Musharaka and Mudaraba
      3. Murabaha
      4. Istisna’a
      5. Sukuk
  3. Emergence of Islamic Finance in Oil and Gas Transactions

  4. Fundamentals of Islamic Finance and Applicability to Oil and Gas Transactions
    1. Oil and Gas Assets Under U.S. Law
      1. The Nature of the Mineral Estate Under U.S. Law
      2. Joint Ownership: Working Interests, Royalties, and Production Payments
    2. Special Considerations Regarding Ownership of Federal Offshore Leases
    3. Bankruptcy Considerations
  5. Islamic Finance and U.S. Oil & Gas Law in Practice: The First Sukuk Offering Backed by United States Oil and Gas Assets

  6. Conclusion

Footnotes

For complete footnote citations, download the PDF.

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