Some insights into the various petroleum and gas exploration and production contracts or agreements. What are the available contract models used? The following contract models are used: 1. Concession or Licence Agreements 2. Production Sharing Agreements 3. Joint Ventures 4. Service Contracts 5. Risk Service Contracts 6. Pure Service Contracts 7. Technical Assistance Contracts These contract models are further combined into four (4) categories: 1. Risk Agreements 2. Concession 3. Production Sharing Agreement (also known as Production Sharing Contract) 4. Service Contracts So what is a contractual agreement in the oil and gas industries? Oil and Gas Contract - it is an agreement by which the exploration and production owner (who is actually the Host Country) grants (authorises) rights to conduct "exploration and production activities" to the Oil Company(ies). In the next discussions, we explore each Contracts supported with the empirical use of each models, and conclude with the type of model currently adopted by PNG for the production of its hydrocarbon resources.
Insightful. Thanks for the information.
An investment industry enthusiast
10moThanks for this info. So which category or models does the Benefit Sharing Agreement regime falls under?