Petroleum Law and Policy – MCQs 50 Score: 0 Attempted: 0/50 Subscribe 1. The primary objective of petroleum law and policy is to: (A) Promote cooking fuel use (B) Regulate exploration, production, and distribution of petroleum resources (C) Ban foreign investment (D) Focus only on renewable energy 2. Which international organization provides model petroleum contracts and frameworks? (A) World Bank (B) OPEC (C) IMF (D) WTO 3. Production Sharing Agreements (PSAs) are used to: (A) Transfer ownership of oil to private companies (B) Share production between the state and the oil company (C) Ban foreign participation (D) Fix oil prices globally 4. In most countries, ownership of petroleum resources rests with: (A) Private companies (B) Local governments (C) The state (D) Foreign investors 5. A concession agreement in petroleum law typically grants: (A) Exclusive rights to extract petroleum to a company (B) Ownership of land (C) Renewable energy licenses (D) Tax exemption 6. Which of the following is NOT a type of petroleum contract? (A) Service contract (B) Production sharing agreement (C) Joint venture contract (D) Mortgage contract 7. Local content policies in petroleum law focus on: (A) Maximizing foreign labor (B) Banning imports (C) Promoting domestic participation in oil and gas projects (D) Increasing fuel subsidies 8. Which body often regulates petroleum operations at the national level? (A) Central Bank (B) National Oil Company (NOC) or Petroleum Ministry (C) Judiciary (D) Labor Union 9. Stabilization clauses in petroleum contracts protect investors against: (A) Currency fluctuations (B) Tax increases and legal changes (C) Pipeline corrosion (D) Oil price volatility 10. In petroleum law, royalties are: (A) Payments to landowners only (B) Payments to the state based on production or revenue (C) Fees paid for equipment (D) Insurance premiums 11. Which organization coordinates oil policies among member countries? (A) OPEC (B) IMF (C) IEA (D) UN 12. Environmental impact assessments (EIA) in petroleum policy aim to: (A) Reduce oil prices (B) Evaluate potential environmental consequences of petroleum projects (C) Increase oil exports (D) Lower royalties 13. A unitization agreement in petroleum law refers to: (A) Pooling of small fields into one contract (B) Combining reservoirs that extend across boundaries (C) Merging of oil companies (D) Standardizing equipment 14. The “right of first refusal” in oil contracts gives: (A) The government first choice to buy produced oil (B) Landowners the right to deny drilling (C) Banks priority in lending (D) Contractors control of oil prices 15. Which of the following best describes a service contract in petroleum law? (A) The contractor owns all produced oil (B) The contractor is paid a fee for exploration/production services (C) The contractor shares oil profits (D) The contractor pays royalties 16. A Joint Operating Agreement (JOA) is signed between: (A) Government and banks (B) Partners in an oil consortium (C) Refiners and consumers (D) Government and unions 17. The purpose of decommissioning regulations in petroleum policy is to: (A) Increase oil production (B) Ensure safe abandonment of oil facilities (C) Reduce exploration costs (D) Extend license duration 18. Which legal doctrine establishes coastal states’ rights over offshore petroleum resources? (A) Right of conquest (B) Doctrine of eminent domain (C) Exclusive Economic Zone (EEZ) (D) Territorial waters doctrine 19. Petroleum fiscal regimes include: (A) Royalties and taxes (B) Production sharing (C) Bonuses and fees (D) All of the above 20. “Force majeure” clauses in petroleum contracts relate to: (A) Labor disputes (B) Events beyond control like war or natural disasters (C) Oil price changes (D) Environmental regulation 21. Which court often hears disputes in international petroleum contracts? (A) Local district court (B) International arbitration tribunal (C) Supreme Court only (D) Maritime court only 22. Which of the following is a “frontier area” in petroleum policy? (A) Highly developed oil fields (B) Areas with unexplored petroleum potential (C) Urban exploration zones (D) Abandoned oil fields 23. The “upstream” sector in petroleum law relates to: (A) Exploration and production (B) Refining (C) Transportation (D) Marketing 24. The “midstream” sector in petroleum refers to: (A) Exploration (B) Refining (C) Transportation and storage (D) Distribution 25. The “downstream” petroleum sector covers: (A) Exploration (B) Refining and marketing petroleum products (C) Pipeline construction (D) Oilfield services 26. In petroleum policy, a signature bonus is: (A) Payment to the state when a contract is signed (B) Payment to landowners before drilling (C) Bonus for company employees (D) Incentive to refine oil 27. Which of the following is a key principle of international petroleum law? (A) Sovereignty over natural resources (B) Free trade only (C) Privatization of all oil companies (D) Ban on state participation 28. Petroleum revenue management policies aim to: (A) Hide income (B) Maximize state revenue and promote economic stability (C) Subsidize foreign companies (D) Exempt oil companies from taxes 29. Which petroleum law principle addresses cross-border reservoirs? (A) Unitization (B) Stabilization (C) Local content (D) Arbitration 30. Which of the following is an example of “resource nationalism”? (A) Allowing only local companies to operate oil fields (B) Privatizing the oil sector (C) Subsidizing foreign oil imports (D) Exporting raw petroleum 31. Which UN body developed the concept of “Permanent Sovereignty over Natural Resources”? (A) UN Security Council (B) UN General Assembly (C) UN Economic and Social Council (D) International Court of Justice 32. Which petroleum policy instrument helps to attract foreign investment? (A) High taxes (B) Favorable fiscal regimes (C) Export bans (D) Strict monopolies 33. In petroleum contracts, “cost oil” refers to: (A) Oil given to local communities (B) Portion of production used to recover costs (C) Oil sold to pay royalties (D) Oil allocated to government only 34. “Profit oil” in a PSA refers to: (A) Oil after cost recovery, shared between government and contractor (B) Oil allocated to contractors only (C) Oil stored in pipelines (D) Oil used for refining 35. Which of the following is a renewable energy policy, not petroleum policy? (A) Feed-in tariffs (B) Production sharing (C) Royalties (D) Service contracts 36. In petroleum contracts, a “carry agreement” means: (A) The state funds all exploration (B) One partner pays costs on behalf of another, to be recovered later (C) Contractors provide free oil (D) Transport of crude oil 37. Petroleum revenue transparency is promoted globally by: (A) WTO (B) Extractive Industries Transparency Initiative (EITI) (C) OPEC (D) G7 38. Which type of arbitration is common in petroleum disputes? (A) ICSID arbitration (B) WTO dispute settlement (C) ICJ litigation (D) UN Security Council mediation 39. A “farm-out agreement” in petroleum law involves: (A) Leasing of farmland for oil (B) Transfer of exploration rights from one company to another (C) Sale of oil to farmers (D) Distribution of refined fuel 40. A Host Government Agreement (HGA) is typically signed for: (A) Offshore safety standards (B) Large-scale pipeline projects (C) Refinery operations (D) Retail fuel sales 41. Which policy helps prevent the “resource curse”? (A) Strong revenue management laws (B) Weak taxation (C) Overdependence on oil exports (D) Monopoly power 42. The principle of “pacta sunt servanda” in petroleum contracts means: (A) Contracts must be honored (B) Contracts can be revoked anytime (C) Oil belongs to the contractor (D) Arbitration is unnecessary 43. Which petroleum fiscal term refers to payment before production begins? (A) Royalty (B) Bonus (C) Profit oil (D) Cost oil 44. Which environmental regulation applies to offshore drilling? (A) Air quality standards only (B) Marine protection laws (C) Food safety laws (D) Aviation safety laws 45. Which is NOT a feature of a Production Sharing Agreement? (A) Contractor bears exploration risk (B) Cost recovery oil is allocated (C) Government and contractor share profit oil (D) Contractor owns the reserves permanently 46. Which petroleum law tool ensures community participation? (A) Local content clauses (B) Exclusive concessions (C) Royalty exemptions (D) International arbitration 47. Which international law governs offshore petroleum rights? (A) Law of the Sea (UNCLOS) (B) WTO trade law (C) Geneva Conventions (D) ILO labor law 48. Which petroleum contract system offers the government the highest control? (A) Service contracts (B) Concession agreements (C) Production sharing agreements (D) Joint ventures 49. What is a “windfall tax” in petroleum law? (A) Tax on oil imports (B) Extra tax on high profits during oil price spikes (C) Penalty for environmental damage (D) Fee for refinery upgrades 50. The ultimate aim of petroleum law and policy is to: (A) Support only oil companies (B) Balance economic benefits, environmental protection, and national interests (C) Ban international cooperation (D) Focus only on taxation FOUNDATIONAL SUBJECTS (Year 1 – Year 2)Engineering Mechanics (Statics & Dynamics) – MCQsFluid Mechanics – MCQsThermodynamics – MCQsComputer Programming (e.g., MATLAB, Python) – MCQsIntroduction to Engineering – MCQsGeology for Engineers – MCQsTechnical Communication – MCQs CORE PETROLEUM ENGINEERING SUBJECTS (Year 2 – Year 4)Introduction to Petroleum Engineering – MCQsPetroleum Geology – MCQsDrilling Engineering – MCQsReservoir Engineering – MCQsProduction Engineering – MCQsPetroleum Fluid Properties – MCQsWell Logging and Formation Evaluation – MCQsPetroleum Economics – MCQsPetroleum Refining and Processing – MCQs Natural Gas Engineering – MCQsEnhanced Oil Recovery (EOR) – MCQsWell Testing – MCQsReservoir Simulation – MCQsDrilling Fluids and Cementing – MCQsOffshore Petroleum Engineering – MCQsHealth, Safety and Environment (HSE) – MCQsPetroleum Project Management – MCQsCorrosion Engineering – MCQsArtificial Lift Techniques – MCQsPetrophysics – MCQs LABORATORIES & PRACTICALS (Theory-based MCQs can be made from these)Drilling Fluids Lab – MCQsCore Analysis Lab – MCQsReservoir Simulation Lab – MCQsRock and Fluid Properties Lab – MCQsWell Logging Lab – MCQs ELECTIVES (Optional/Advanced)Energy Transition and Sustainability – MCQsUnconventional Resources (Shale, Tight Gas, etc.) – MCQsData Analytics in Petroleum Engineering – MCQsGeographic Information Systems (GIS) – MCQsPetroleum Law and Policy – MCQsPipeline Engineering – MCQsRenewable Energy Integration – MCQs