Concessionary system overview the concession is an original system used in world petroleum arrangements and still the most widely used. Introduction oil and gas legislations are varies in every country, they depend on the purpose and the intention of regulating the countries strategic assets. Production sharing contracts production sharing contracts or agreements psc hereafter are ubiquitous in much of asia, africa and the middle east, with only a handful of countries in these regions adopting a royaltytax or concession rt regime or some hybrid. Together with partners in lower and middleincome countries, iied has been working to strengthen local and national capacity to examine contractual issues with a sustainable development lens. The manuscript of this portal was earlier used as a text, for a course on international petroleum fiscal systems and production sharing contracts which i used to conduct. International petroleum fiscal system production sharing contracts chapter 3 published on march 19, 2017 march 19, 2017 likes 2 comments.
Chapters 2 and 3 provide background material on, respectively, the stages of an oil and gas. International petroleum fiscal systems service contracts. Negotiation is not a simple process of giving and taking, it involves various steps and complexities. Pdf download international petroleum fiscal systems and. A production sharing contract psc is a contract between either a hc or its state oil. Fiscal system classification is based on legal distinctions. International petroleum fiscal systems and production sharing contracts. International petroleum fiscal systems and production sharing contracts johnston, daniel johnston on.
Production sharing contracts and international petroleum fiscal systems organised by. International petroleum fiscal system production sharing. Production sharing fiscal scheme for petroleum in which production at a surface delivery point is shared between a state entity and a private contractor psc or a production sharing contract or agreement prrt petroleum resource rent tax profit oil balance of production after subtraction of oil used for cost recovery. Pdf download international petroleum fiscal systems and production sharing contracts pdf full ebook. The petroleum fiscal systems in many developing countries are now opting for production. Apr 10, 2017 international petroleum contracts are generally either production sharing contracts or modernized concession agreements. Petroleum fiscal systems and contracts the petroleum fiscal system for a country is essentially the taxation structure, including royalty payments, that has been established by legislation. Production sharing contracts and international petroleum. Service versus production sharing contracts table 1 summarizes some of the differences between four petroleum fiscal regimes. International petroleum fiscal systems and production sharing. The attractiveness of the fiscal terms has a fundamental effect on a projects feasibility and economic benefits of international oil companies, and it is an important indicator for judging the countrys investment environment of oil industry. Over 200 pages of additional information and onepage summaries of the commercial terms for an additional 14 countries not found in the book.
In article 18 lukman, r, keynote address by the honourable minister of petroleum resources on the proposed petroleum industry bill pib. At each step in the value chain, variety of contracts has to negotiate and bring to closure. Petroleum fiscal systems around the world petroleum fiscal contractual systems or regimes around the world have for many years been classified into two main categories. Contract negotiation is a key feature of petroleum business transactions between governments and oil companies.
Everyday low prices and free delivery on eligible orders. Kent saugier is a handson scientific, technology and business professional with twentyfive years experience in upstream oil and gas, offshore technology, economics, economic modeling, international petroleum contracts, project management, software applications and technology including design, licensing and commercialization. Fiscal systems and production sharing contracts, penn well publishing, tulsa, ok. These materials include over 100 tables, figures, illustrations and worksheets. In countries where petroleum law does not exist, the petroleum rights are granted. Fiscal considerations oxford institute for energy studies. In concessionary system, petroleum rights are granted either on the basis of a general mining law or under a special petroleum law. International petroleum fiscal systems and production sharing contracts johnston, daniel daniel johnston covers everything including historical development of contracts, terminology of accounting and negotiations, threshold field size analysis, arithmetic behind contract terms, and more. International petroleum fiscal systems and production. A comparison with concessionary system from the political, financial and functional point of view i. In this section we focus on comparing service contracts with production sharing contracts.
Assessment of fiscal terms of international petroleum contracts. The structure of these contracts has evolved both to accommodate the. Productionsharing agreements psas are among the most common types of contractual arrangements for petroleum exploration and development. Classification of petroleum fiscal regimes production sharing contracts royaltytax systems contractual based systems service agreements when, where and if hydrocarbon title transfers to the investor, and who has title to facilities. Unlike the us and canada, the law in other countries. I express my sincere thanks to all those who have attended this course for their inspiration, valuable suggestions and encouragement. A comparative analysis of production sharing contracts of. The fundamental distinction between psc and rt regimes lies in the. Buy international petroleum fiscal systems and production sharing contracts book online at best prices in india on. Fiscal stability clauses are widespread in petroleum contracts to solve problems deriving from. Roughly half of the governments of this world use pscs and the rest use rts.
Fiscal terms of oil contracts are primary nonresource factors international oil companies consider when they want to enter a country. Fiscal systems and productionsharing contracts, penn well publishing, tulsa, ok. Contents petroleum fiscal systems concessionary systems production sharing contracts risk service contracts threshold field size analysis global market for exploration acreage production sharing contract outline accounting principles double taxation commentary appendices glossary. International petroleum fiscal systems and production sharing contracts book. The petroleum fiscal system for a country is essentially the taxation structure, including royalty payments, that has been established by legislation. International petroleum contracts are generally either productionsharing contracts or modernized concession agreements. Subsequently, it will look at the main features of concessions by analyzing the brazilian regulatory framework for oil activities. Jan 05, 2016 pdf download international petroleum fiscal systems and production sharing contracts pdf full ebook. F download international petroleum fiscal systems and production sharing contracts full audiobook self.
The petroleum fiscal regime of a country is a set of laws, regulations and agreements which governs the economical benefits derived from petroleum exploration and production. These materials include over 100 tables, figures, illustrations and worksheets dealing with the philosophy, theory, arithmetic and mechanics as well as analytical. The most common business structures in the industry today are either production sharing contracts pscs or royaltytax systems rts. The basis of this classification is legal regarding transfer of title to hydrocarbons to the oil company. F download international petroleum fiscal systems and. At a glance fiscal regime depending on the date on which the petroleum contract was signed, the algerian fiscal regime applicable to the oil and gas upstream industry is governed by one of the following. More broadly, the fiscal system includes all aspects of the contractual and taxation framework that governs the relationship between the host government and an international oil company. Under a psa the state as the owner of mineral resources engages a foreign oil company foc as a contractor to provide technical and financial services for exploration and. The regime regulates transactions between the political entity and the legal entities involved. Answers to the problems and exercises are also provided. Beginningresearcher6 submitted 4 minutes ago by beginningresearcher6. Revenue sharing arrangements in production sharing agreements illustrate this point vividly. International petroleum exploration and exploitation agreements.