Describe, in general terms, the key commercial aspects of the oil sector in your country.
Italy has always been highly dependent on conventional energy sources and imports to cover its energy needs. Hence, although Italy is a relatively small producer of crude oil, it has always regarded its domestic oil production as very important for the security of oil supply and for the purpose of reducing dependence on foreign sources. Italy is undoubtedly competitive in respect to production costs, which are lower than in other comparable countries. In 2012, Italian recoverable oil reserves amounted to 126 million tonnes and, according to the estimated capacity of recently drilled wells in southern Italy, reserves may increase up to 700 million tonnes.
"Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Oil Regulation 2013, (published in June 2013; contributing editor: Bob Palmer of CMS Cameron McKenna LLP). For further information please visit www.GettingTheDealThrough.com<http://www.GettingTheDealThrough.com>."