Venezuela's Oil Law of 1943

In 1948, Venezuela established a new 5050 revenue model that would later become the norm across the entire oil exporting world. The law was written by some of the Venezuelan technocrats that have been working in the other sectors now for decades. It establishes, for example, that it increases the royalties to 16%. So royalties are not really taxes; they're something you have to pay as a cost even before paying taxes.