State and foreign investors in the form of a production sharing contract, through. Production sharing contract psc production sharing agreement psa under a pscpsa, a national oil company noc or a host government enters into a contract directly with an oil and gas company. Exploration opportunities production sharing contract overview. Production sharing contracts as defined in section 18 of this decree. He stressed that in fact this one of the requirements of the deal. Production sharing contract production sharing agreement.
This production sharing contract the contract is entered into in beijing on. Tax advisory value credentials tax advisory in relation to industry law and practice. Production sharing agreement a guide or the oi and gas sector ased on eerience rom the asian egion 2012. From the fgns perspective, given that some of these pscs were negotiated and entered into over 20 years ago, there is a need to update them to reflect current realities and also to ensure that they produce a lot. This contract is a production sharing contract, the scope of which is the exploration, appraisal, development and production of hydrocarbons. Production sharing agreements concession and contract fiscal systems elements of production sharing contracts pscs, including cost oil and profit oil financial accounting for pscs nonrisked and risked service contracts group case studies for production sharing contracts register for this course now. 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 development operations. The department of it services is not responsible for content on external webpages. Cyprus petroleum regulations are based on a production sharing contract psc system where the terms are negotiated before a license is. 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.
Cyprus has national legislation in place that protects all women against gender inequality, whether they work in fulltime or parttime jobs, permanent work placement or on contract, low skilled or high skilled jobs. The contractual form changes between and within countries but the most common contracts are concession contracts and production sharing agree. Most but not all production sharing agreements provide for allocation based on the percentage of the productive lateral crossing each lease. Production sharing agreements versus concession contracts julie ing. Jun 04, 2019 hydrocarbons company ceo charles ellinas told new europe on may 31 the deal reached between cyprus government and the aphrodite gas field stakeholders to modify the production sharing contract psc means that cyprus will be able to monetise aphrodite. Pdf on structuring offshore hydrocarbon production sharing. The first production sharing contract was signed by iiapco in august 1966, with permina the national oil company of indonesia. Production sharing contract signed for cyprus block 10.
Nov 24, 2017 nicosia cyprus, 24th november 2017 enis chief executive officer, claudio descalzi, met today in nicosia with the president of the republic of cyprus, nikos anastasiadis. May 20, 2014 abstract governments choose among many contracts to delegate the exploration and the extraction of oil. Production sharing agreements versus concession contracts. Contract of employment for various sectors employment of aliens service contract of employment for domestic worker. At the end, this dissertation will compare both regimes from a contractual perspective in order to answer whether it is really necessary to adopt a new regulatory framework based on a production sharing contract for the subsalt area in brazil. Republic of cyprus model production sharing contract psc. We recognise the challenges that confront energy companies and their suppliers in cyprus from the production sharing contract negotiation stage through to. Psc published by the ministry of commerce, industry.
Contract area means the geographic area within the territory of sao tome and principe which is the subject of this contract and as described in schedule 1, as such area may be amended in accordance with the terms herein. Nigeria, indonesia, malaysia and equatorial guinea. Model production sharing contract under the petroleum act. Through pscs, our partner bear exploration, development and production costs in return for an agreed share of production. According to cypriot officials and a model exploration and production sharing contract. Local content and procurement requirements in oil and gas contracts. Hydrocarbons law, which allows for agreements to be entered into between the.
Production sharing agreement psa is a contract between one or more investors and the government in which rights to prospection, exploration and extraction of mineral resources from a specific area over a specified period of time are determined. Shareholders agreement of company name company name document id company url in this spirit, the partners agree not to sell the companys shares to outsiders when share disposal restriction provisions of this shareholders agreement hereinafter referred also as agreement restrict the selling of the shares. Any holder of a licence who wishes to transfer it or assign any rights under it to. Concept of production sharing contract psc government petronas contractors pda psc entire ownership of nations petroleum resources is vested to petronas. Renegotiation of nigerias production sharing contracts. Deep offshore and inland basin production sharing contracts decree. Contract extension proposed to the minister through bpmigas within 10 to 2 years prior to the original contract expiry date. Model psc under the petroleum act page 2 production sharing contract dated this agreement is a production sharing contract made under the petroleum act between the, acting on behalf of the democratic republic of timorleste the ministry. The contractor shall a be responsible to the government for the execution of the petroleum operations contemplated hereunder in accordance with the provisions of this. Pdf aphrodite natural gas field and its economic viability ilayda.
The fundamental distinction between psc and rt regimes lies in the. This contract is a production sharing contract, the scope of which is the exploration, appraisal, development and production of hydrocarbons in the contract area and the supply of required infrastructure within and outside of the contract area up to the delivery point, all at the contractors sole risk and expense. Petronas, as a custodian, manages the petroleum resources of the nation. Natural gas or any combination of these from the contract area excluding. Petronas has exclusive rights to exploit nations petroleum resources. A literature based methodology was adopted, and indeed, data were gathered from the psc treaties and. The relevant laws are the equal treatment of men and women. How to scrutinise a production sharing agreement a guide or the oi and gas sector ased on eerience rom the asian egion 2012.
Natural gas, cyprus island, aphrodite natural gas filed, greek. This is an exploration and production sharing contract, the object of which is the exploration. Commercial production means production of crude oil or condensate or. Effective date means the first day of the month next following the month in which this agreement is signed by sonangol and contractor group. Deep offshore and inland basin production sharing contracts. A comparative analysis of production sharing contracts of selected developing countries. Contract means this production sharing contract, including its recitals and schedules. Enis ceo meets in nicosia with the president of the republic. Production sharing agreements oil and gas lawyer blog. The meeting was the opportunity to update cyprus president on enis activities in the republic of cyprus and jointly discuss about future opportunities.
Revenue sharing arrangements in production sharing agreements illustrate this point vividly. The federal military government hereby decrees as follows. A variety of psc terms are designed to encourage an optimal level of investment based on the complexity of petroleum resources. 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. Production sharing contract for these areas with the turkish cypriot authorities. Production sharing contracts production sharing contract was pioneered in indonesia and was first used in agriculture which was later adopted for the petroleum sector. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. While cyprus energy industry continues to develop and evolve, the legislation in cyprus is evolving as well to make doing business in cyprus competitive for all oil and gas companies. An agreement between the lessee and lessor as to how production will be shared among leases crossed by a production sharing well. 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. The contract for the exploration and production sharing of block 10 in cyprus exclusive economic zone eez was signed on wednesday, in the presence of ministers of energy, foreign affairs, finance, and labour and delegations from exxonmobil and qatar petroleum. This contract is a production sharing contract, in accordance with the provisions herein contained. Philippos raptopoulos, ey cyprus head of tax services, says.
Application for employment of aliens by companies with foreign investment. This decree has been amended by deep offshore and inland basin production sharing contracts amendment decree no 26 of 1999. Agreement or the agreement means this production sharing agreement executed between sonangol and contractor group, including its annexes. European weekly, cyprus launches oil and gas exploration tender 2007. This study aims to compare expected returns from exploiting petroleum resources of selected countries nigeria, indonesia, malaysia and equatorial guinea that have adopted theproduction sharing contracts. A comparative analysis of production sharing contracts of.
Fiscal challenges of tanzanias production sharing agreements psas zitto kabwe, mp and chairman pac dar es salaam, september 2014 introduction the recent leak of the natural gas terms agreed with statoil exxonmobil is an. Productionsharing agreements psas are among the most common types of contractual arrangements for petroleum exploration and development. The duration of oil prospecting licence relating to in the deep offshore and inland prospecting licence basin shall be determined by the minister and shall be for a minimum period of 5 years and an aggregate period of. When it involves the period of gas sales agreement which is beyond the efective date of the contract, the extension may be proposed at a sooner date. Production sharing contract will be brought into discussion. Crs in accordance with the production sharing contract psc signed between our client and the cyprus government and have participated in the bilateral meetings with government officials for crs related matters. The offshore discovery in the republic of cyprus anastasios.
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