Concession Agreement Vs Psa

The modern concession agreement replaced the traditional concession regime in the 1940s, when Venezuela imposed additional financial burdens on its foreign investors (such as tax incentive schemes). Risk Service Contracts (RSCs) and Pure Service Contracts (PSCs). However, the distinction between the two is unclear. In both CSRs and CSPs, foC is committed to providing services and know-how and materials. The difference between the two, according to a number of researchers, lies in the nature and method of remuneration. With our high-quality information, expertise and experienced oil and gas team, we help you conclude this agreement and provide all the services necessary to conclude risky service contracts. Concession AgreementIn the typical oil and gas concession agreement, oil-producing countries or a competent management authority grant contractors the operation of oil projects and the right to develop projects in exchange for a number of in-kind payments or contributions. This source of government revenue can take many forms, but generally includes one or more of the following: fixed rents, royalties (based on sales), surcharges (effective reduction of the potential for increase of sponsors) and taxes (income and tariffs). Thanks to our know-how and extensive network, we can provide all the commercial, financial and technical services necessary to conclude and implement this agreement. Our services include assessing potential risks. Estimate the benefits of entering into this contract. Find a partner, an investor, etc.

Financial services are available. These agreements are between the host country (HC) where exploration and production activities take place, whether in onshore or offshore areas, and its national oil company (NOC) and an oil company (CIO). The IOC may be made up of a company or group of companies (consortium) and may be local or international. Under the concession contract, the IOC is a concessionaire, while the IOC is a contractor according to PSA. A government can make a concession to a prospector. The concession contract defines certain things. For example, exploration conditions and production agreement rules if successful. A long time ago, a concession meant that the prospector would own the resources on the territory of the concession (the British North Sea) and for a period of sometimes up to 75 years. Over the years, concessions have been less frequent, which has made way for production-sharing agreements, etc. The government wants to generate revenue from the start of exploration. Payments to the government sometimes include a bonus when a contract is signed.