Concession Agreement In Oil And Gas
Concession contract In a typical oil and gas concession agreement, oil-producing countries or a competent administrative authority grant contractors the right to carry out oil projects and the right to develop the projects in exchange for a flow of payments or benefits in kind. This source of state revenue can take many forms, but usually has one or more of the following options: fixed rents, royalties (based on sales), profit discounts (effectively reducing upside potential for sponsors), and taxes (revenues and tariffs). Thanks to our know-how and extensive network, we can provide all the commercial, financial and technical services necessary for the conclusion and execution of this agreement. Our services include estimating the potential risks estimating the benefits of concluding this contract search for a partner, the investor, etc. Provide financial services Provide the land for the conclusion of the contract with public or private companies and beyond Under this type of agreement, the company or consortium makes available technical knowledge and capital and takes the risk of the project in return for exclusive rights of exploration and production of oil and / or gas of the contract territory. The host State generally owns the equipment and facilities. Unless otherwise specified in the legislation or agreement on the distribution of production, the enterprise shall also pay income tax on profits to the host State as well as all other taxes and contributions provided for by the legislation and the corresponding contract. These three types of agreements are explained in the following sections. Examples of accepted service agreements and areas covered Service contract Under the service contract, the service company bears all the costs of exploration, such as those related by the contractor to an oil-producing country under PSA. In case of production, the contractor receives its production costs and a royalty per barrel of oil, which will then be produced by the contractor. Our highly qualified teams support you at all stages and provide all the technical and financial services for this agreement.
The international farm-out agreement is based on the fact that one party sequences the shares or interests of the rights of an oil and gas development project given to another party. Normally, “where a party expiates the rights, the project partners may choose to oppose the assignment or to have the priority right to acquire the interests prior to the assignment to another party. Based on our expertise in the oil and gas industry, we are able to offer our customers competent assistance in concluding and complying with this agreement. Participation agreements: the NOC is “supported” by an International Oil Company (IOC). The NOC weighs on the IOC by not fully compensating the IOC for the risks assumed during exploration or commercial discovery. The IOC is facing significant losses and therefore needs greater success to compensate for this situation based on the NOC`s share in the joint venture. However, the IOC takes advantage, for example, of the fact that it has the NOK as a partner when confronted with nationalist treats. Joint Ventures (Operating) AgreementA group of two or more companies, private or public, or a combination of private and public companies, can be called a joint venture (“JV”). . . .