What is the difference between JV and PSC?

In JVs agreement, oil and gas operations funds are contributed by JV partners in proportion to their participating interests. While under PSCs, FOCs bear all the risks and costs of exploration and production. Though government participates on commercial discovery.

How does a production sharing contract work?

Production Sharing Contract (PSC) is a contractual arrangement for exploration and production of petroleum resources where the contractor undertakes all the financial, technical and operational risks associated with petroleum operation in return for a share of profit oil after payment of royalty, cost and tax oil.

What is production sharing plan?

PRODUCTION SHARING PLAN — Any enterprise adopting the scheme provided for in Section 32 hereof or operating under a production venture, lease, management contract or other similar arrangement and any farm covered by Sections 8 and 11 hereof is hereby mandated to execute within ninety (90) days from the effectivity of …

What is a production handling agreement?

Without prejudice to a Party’s rights to market its own production under the OOA, the Operator shall market each Participant’s share of production with the Operator’s own production, and on the same commercial basis, without any marketing fee payable to Operator. …

What is JOA NNPC?

​​Joint Operating Agreement The Joint Operating Agreements (JOA) is the basic, standard agreement between the NNPC and the operators. It sets the guidelines/modalities for running the operations.

What is PSC in NNPC?

The Nigerian National Petroleum Corporation (NNPC) and Bonga Production Sharing Contract (PSC) partners, have signed watershed agreements to unlock $700m (about N320bn) revenue to the federation. The field also supplies gas to NLNG another strategically important asset to NNPC and its partners.

What is R factor in oil and gas?

The R Factor is cumulative revenues (cost recovery plus profit petroleum) divided by cumulative costs.

What does PSA mean in oil?

Production-Sharing Agreements (PSAs) are among the most common types of contractual arrangements for petroleum exploration and development.

What are three fiscal instruments commonly found in production sharing arrangements?

various instruments can be applied across different fiscal regimes. We discuss individual instruments in section 4. There are three main types of fiscal regimes: Tax-Royalty, Production Sharing or Service Contracts. However, particular elements of each may be common to all.

What is PSC in Nigeria?

improve the economy of the country, Production Sharing Contract (PSC) was introduced as a policy for the exploration of the country’s petroleum resources. This policy is mainly regulated by the Deep Offshore and Inland Basin Production Sharing Contract Act, Laws of the Federation of Nigeria 2004.

What is service contracting?

Service Contracts are agreements between a customer or client and a person or company who will be providing services. For example, a Service Contract might be used to define a work-agreement between a contractor and a homeowner. Or, a contract could be used between a business and a freelance web designer.

What is PSA regime?

The PSA regime was established in Russia under the Federal Law on Production Sharing Agreements of December 30, 1995 in parallel with the prevailing licensing regime (Federal Law on Subsoil Resources of February 21, 1992) in order to encourage foreign investment in geographically isolated and technologically complex …