What is petroleum sharing contract?

Production sharing agreements (PSAs) or production sharing contracts (PSCs) are a common type of contract signed between a government and a resource extraction company (or group of companies) concerning how much of the resource (usually oil) extracted from the country each will receive.

What is petroleum sharing agreement?

Model Production Sharing Agreement (MPSA) Tanzania’s Model PSA serves as the basic document for negotiations between foreign oil companies, the Government and TPDC. It sets out the terms under which exploration and production can take place.

What is production sharing contract in oil and gas industry?

Production Sharing Contract (PSC) is a term used in the Hydrocarbon industry and refers to an agreement between Contractor and Government whereby Contractor bears all exploration risks, production and development costs in return for its stipulated share of (profit from) production resulting from this effort.

What is a sharing contract?

Shared Contract means any Contract to which Seller or any of its Subsidiaries is a party with any non-Affiliated third party and which benefits both the Business and any Retained Business.

What is a unitization agreement?

Unitization is the agreement to jointly operate an entire producing reservoir or a prospectively productive area of oil and/or gas. The entire unit area is operated as a single entity, without regard to lease boundaries, and allows for the maximum recovery of production from the reservoir.

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What is risk service contract?

Risk service agreements

Under this type of agreement, the host state merely hires the service of a petroleum company or consortium to benefit from its financial and technical expertise. The company or consortium assumes the risk and liability and is reimbursed by a service fee, usually paid in cash.

What is modern concession?

It is called Modern Concession because unlike the old traditional concession, only Royalties and Taxes are paid to the host government, but this hybrid system allows the host government, some participating interests for which payment has to be made towards capital development costs, as the practice under Joint Ventures …

What is a joint venture agreement oil and gas?

Joint venture agreement is a special growth strategy between internal and external strategies; it exists where two or more parties combine together to execute an oil & gas transaction and mitigate risk associated with the business.

How does a production sharing contract work?

Production sharing contracts were first developed in Indonesia in 1966 to give the host government more control over their resources. … Under this type of contract the contractor bears the exploration risk while the host government receives a share of the produced oil rather than cash from royalties and taxes.

What is cost recovery ceiling?

Cost recovery is an opportunity given to the E&P company to recover(by selling the crude or gas) the cost borne by the company to make the commercial discovery.

What is a PSC in oil and gas?

Production sharing agreements (PSAs) or production sharing contracts (PSCs) are a common type of contract signed between a government and a resource extraction company (or group of companies) concerning how much of the resource (usually oil) extracted from the country each will receive.

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What is a general offer?

A general offer is one that is made to the public at large. It is not made any specified parties. So any member of the public can accept the offer and be entitled to the rewards/consideration. Say for example you put out a reward for solving a puzzle.

What does a joint operating agreement do?

Joint Operating Agreement (JOA) — a contract that sets forth the duties and obligations of both the operator and nonoperating working interest owners of a mineral lease.

What is service contracting?

Service contract means a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. A service contract may be either a nonpersonal or personal contract.

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