Negotiation is not a simple process of giving and taking, it involves various steps and complexities. 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. 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. Revenue sharing arrangements in production sharing agreements illustrate this point vividly.
Chapters 2 and 3 provide background material on, respectively, the stages of an oil and gas. International petroleum fiscal systems and production. In article 18 lukman, r, keynote address by the honourable minister of petroleum resources on the proposed petroleum industry bill pib. Answers to the problems and exercises are also provided. Unlike the us and canada, the law in other countries. Apr 10, 2017 international petroleum contracts are generally either production sharing contracts or modernized concession agreements. The structure of these contracts has evolved both to accommodate the. 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. Roughly half of the governments of this world use pscs and the rest use rts.
Production sharing contracts and international petroleum fiscal systems organised by. Buy international petroleum fiscal systems and production sharing contracts book online at best prices in india on. Assessment of fiscal terms of international petroleum contracts. The basis of this classification is legal regarding transfer of title to hydrocarbons to the oil company. In countries where petroleum law does not exist, the petroleum rights are granted. I express my sincere thanks to all those who have attended this course for their inspiration, valuable suggestions and encouragement. At each step in the value chain, variety of contracts has to negotiate and bring to closure. Pdf download international petroleum fiscal systems and. F download international petroleum fiscal systems and production sharing contracts full audiobook self. International petroleum contracts are generally either productionsharing contracts or modernized concession agreements. Fiscal system classification is based on legal distinctions. A production sharing contract psc is a contract between either a hc or its state oil. Over 200 pages of additional information and onepage summaries of the commercial terms for an additional 14 countries not found in the book. These materials include over 100 tables, figures, illustrations and worksheets dealing with the philosophy, theory, arithmetic and mechanics as well as analytical.
Service versus production sharing contracts table 1 summarizes some of the differences between four petroleum fiscal regimes. International petroleum fiscal systems and production sharing contracts johnston, daniel johnston on. 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. 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. Introduction oil and gas legislations are varies in every country, they depend on the purpose and the intention of regulating the countries strategic assets. 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. A comparative analysis of production sharing contracts of.
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. 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. Everyday low prices and free delivery on eligible orders. 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. The petroleum fiscal system for a country is essentially the taxation structure, including royalty payments, that has been established by legislation. International petroleum fiscal systems and production sharing contracts book.
Fiscal systems and production sharing contracts, penn well publishing, tulsa, ok. 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. Concessionary system overview the concession is an original system used in world petroleum arrangements and still the most widely used. Contract negotiation is a key feature of petroleum business transactions between governments and oil companies. International petroleum fiscal systems service contracts. International petroleum fiscal system production sharing contracts chapter 3 published on march 19, 2017 march 19, 2017 likes 2 comments. Fiscal systems and productionsharing contracts, penn well publishing, tulsa, ok. In concessionary system, petroleum rights are granted either on the basis of a general mining law or under a special petroleum law. The regime regulates transactions between the political entity and the legal entities involved. 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. Subsequently, it will look at the main features of concessions by analyzing the brazilian regulatory framework for oil activities. The petroleum fiscal systems in many developing countries are now opting for production. Fiscal stability clauses are widespread in petroleum contracts to solve problems deriving from. 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.
Production sharing contracts and international petroleum. The fundamental distinction between psc and rt regimes lies in the. Productionsharing agreements psas are among the most common types of contractual arrangements for petroleum exploration and development. Pdf download international petroleum fiscal systems and production sharing contracts pdf full ebook. 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. These materials include over 100 tables, figures, illustrations and worksheets. Fiscal terms of oil contracts are primary nonresource factors international oil companies consider when they want to enter a country. 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. 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. International petroleum fiscal system production sharing.
Fiscal considerations oxford institute for energy studies. International petroleum fiscal systems and production sharing contracts. In this section we focus on comparing service contracts with production sharing contracts. Buy international petroleum fiscal systems and production sharing contracts by daniel johnston isbn. A comparison with concessionary system from the political, financial and functional point of view i.
International petroleum exploration and exploitation agreements. International petroleum fiscal systems and production sharing. Jan 05, 2016 pdf download international petroleum fiscal systems and production sharing contracts pdf full ebook. Beginningresearcher6 submitted 4 minutes ago by beginningresearcher6. The most common business structures in the industry today are either production sharing contracts pscs or royaltytax systems rts.