An agreement between Contractor and Government whereby Contractor bears all exploration
risks, production and development costs in return for its stipulated share of production
resulting from this effort. These costs are recoverable in case of commercial discovery.
The title of the hydrocarbons remains with the State. The State maintains regulatory control and the Contractor is responsible for the execution of petroleum operations in accordance to the terms of the contract.
The contract is based on a production sharing and not on profit sharing basis.
During the term of the contract, after allowance for up to a specified percentage of annual production for recovery of costs, the remaining production is split between the contractor and State.
Equipment purchased and imported by the contractor becomes the property of the state. With the service company equipment and leased equipment being exempt.
Following activities are being carried out in PSC
The title of the hydrocarbons remains with the State. The State maintains regulatory control and the Contractor is responsible for the execution of petroleum operations in accordance to the terms of the contract.
The contract is based on a production sharing and not on profit sharing basis.
During the term of the contract, after allowance for up to a specified percentage of annual production for recovery of costs, the remaining production is split between the contractor and State.
Equipment purchased and imported by the contractor becomes the property of the state. With the service company equipment and leased equipment being exempt.
Following activities are being carried out in PSC
- Review of work Programme and budget of all exploration blocks and fields under PSC’s.
- Facilitating of statutory and other clearances.
- Management Committee Meetings.
- Assignment of Participating Interest.
- Extension of phases, relinquishment of acreages, assignment, appointment of auditor, approval of auditing account and other PSC related issues as and when arise.
Hello Girish,
ReplyDeleteI would like to contribute. I already started something along these lnines in my blog http://thismightjustcomeintheexam.blogspot.in/ As the name suggests it takes up topics that might come in the mains exam next year. Take a look and let me know. Its better to collate with others than dissipate efforts all over the place :)
On the other hand, you might want to do quality control so feel free to ask me to send potential writeups to you first, rather than posting them on my own :)
Another of my international affair notes are up on http://jhinujha.wikispaces.com/ but they arent as topical but country wise. I haven't updated them in a long time online.
Cheerio
dj