Partnerships in Oil and Gas Production-Sharing Contracts
Article from: OGEL 1 (2005), in Production Sharing Contracts
In countries with large or potentially large oil and gas deposits, the resource and its extraction tend to become vital cornerstones of the economy. However, uncertainties involved in finding commercial quantities of oil and gas and the intensive capital required for undertaking exploration and production result in significant business risks. The petroleum fiscal systems in many developing countries are now opting for production-sharing contracts (PSC) as a new model of agreement for the exploration and production of oil and gas resources. Under a PSC, the international oil company (IOC) ...