Production Sharing Agreement Meaning In Texas
Description
Form popularity
FAQ
The contractual form changes between and within countries but the most common contracts are concession contracts and production sharing agreement (PSA). The concession contract is simplified to a royalty rate while the PSA is based to the share of the extraction allocated to the costs reimbursement.
Production-Sharing Agreements (PSAs) are among the most common types of contractual arrangements for petroleum exploration and development.
Production sharing agreement (PSA) is a contract between one or more investors and the government in which rights to prospection, exploration and extraction of mineral resources from a specific area over a specified period of time are determined.
Production sharing agreement (PSA) is a contract between one or more investors and the government in which rights to prospection, exploration and extraction of mineral resources from a specific area over a specified period of time are determined.
An allocation well is a type of horizontal well that allows a lessee with a 100% working interest in two or more adjacent tracts to drill a well that traverses - and produces from - each tract.
A production sharing contract (PSC) is a contractual relationship between a host government and a private sector participant ('investor') whereby the government contracts with the investor to carry out oil and gas exploration and production activities (E&P activities) in a defined area for a defined period of time.
In a production sharing contract (“PSC”), the host country's government awards to an oil company (or group of companies, typically called the Contractor) the rights to explore in a specified area and, following discovery of hydrocarbons in the area, the right to produce the discovered resources.
