Understanding upstream petroleum agreements—concessions, production sharing contracts and service contracts


Published by a ³ÉÈËÓ°Òô Energy expert
Practice notes

Understanding upstream petroleum agreements—concessions, production sharing contracts and service contracts


Published by a ³ÉÈËÓ°Òô Energy expert

Practice notes
imgtext

The purpose and scope of petroleum agreements

In order for a private sector participant (the ‘investor’) to carry out oil and gas exploration and production (‘E&P’) activities on land or sub-sea, the investor will need to obtain the consent of the ultimate owner of the oil and gas, which is usually the host government (where ownership by the state could be received as a matter of constitution, eg Iran, or by statute, eg the UK). This consent typically take one of three forms (although there are many hybrid versions which incorporate elements of more than one of these forms):

  1. •

    a concession (in today's terms, a licence or a lease),

  2. •

    a production sharing contract (a ‘psc’), or

  3. •

    a service contract

For the purposes of this Practice Note, these arrangements are collectively referred to as ‘petroleum agreements’.

A petroleum agreement establishes the framework for the performance of E&P activities by an investor in a defined area. The petroleum agreement will address a wide range of issues, the most important of which

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Ownership definition
What does Ownership mean?

The term ownership denotes a wide array of rights over property.

Read more

Popular documents

Gas sales agreement—key clauses

Gas sales agreement—key clausesTypes of gas sales agreements (GSAs)Contracts for the sale of gas may take several forms, including:•term agreements—which provide for the sale and purchase of gas for a defined period and are generally classified as either short-term (one to five years) or long-term

Joint study and bid agreement

Joint study and bid agreementIntroductionA joint study and bid agreement (JSBA) is a contractual arrangement commonly utilised in the oil and gas industry where a number of parties are considering submitting a joint bid for a petroleum agreement.Typically, international oil companies are offered oil

Understanding upstream petroleum agreements—concessions, production sharing contracts and service

Understanding upstream petroleum agreements—concessions, production sharing contracts and service contractsThe purpose and scope of petroleum agreementsIn order for a private sector participant (the ‘investor’) to carry out oil and gas exploration and production (‘E&P’) activities on land or

LNG Chartering—an introduction

LNG Chartering—an introductionIntroductionPractice Note: LNG—an introduction provides a general overview of the production and use of liquefied natural gas (LNG). This note concerns, specifically, the transport of LNG by sea.The predominant purpose of liquefying natural gas is to transport it by