Consortiums in the Upstream Oil Sector – How to Deem the Existence of a Permanent Establishment From Offshore Oil Activities?

Due to their complex contractual arrangements and diverse activities in the upstream sector, partners in an oil consortium may constitute multiple Permanente establishments (PE) in a Source State. Therefore, States might have to set aside the basic rules on a physical permanent establishment and deem the existence of a PE with the help of specific provisions in DTTs and domestic legislation This paper studies how different jurisdictions approach on the existence of a PE for consortiums in the upstream oil sector.