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Creative Director » Difference Between Concession Agreement And Production Sharing Agreement acheter ivermectin france can ivermectin cure coronavirus can humans use ivermectin for animals para que sirve las gotas quanox ivera chain 7210

Difference Between Concession Agreement And Production Sharing Agreement

December 7, 2020

In both cases, the IOC supports all financial risks, provides the necessary means, equipment, know-how and qualified personnel. However, there are several differences between the two – the concession agreement and the PSA – that should take into account the IOCs. Under the concession contract, the IOC is a concessionaire, while the IOC is a contractor according to PSA. The IOC has the exclusive right to explore the agreed area and, after commercial discovery, has the exclusive right to use the production. Exploration and valuation are carried out at the IOC`s expense and are granted for a specified period of time. The right to assets (land, equipment, tools and facilities) acquired by the contractor for operation under the agreement is passed on, without delay or overtime, to HC or NOC, in accordance with the cost recovery system. Under the concession agreement, the IOC pays royalties in cash or in kind; Under the EPI, royalties can be deducted from the entire production before being cooked to that production. It can also be paid for or cancelled in full by the HC or NOC on behalf of the IOC. CSPCs are contracts between one or more investors in the oil group and the government of the prospectus. These contracts define the rights to explore, explore and exploit the natural resources of a specific area over a specified period of time. There is also the percentage of oil and gas that each party receives after recovering a certain amount of costs and costs. Third, there is no recovery of THE IOC`s costs and expenses under the concession contract, as the CIOs hold the entire production. However, under the provisions of the CSP, ISCs can recover the costs of exploring, developing and operating gross revenues.

However, this is being audited by the host country or its National Oil Company. Under the concession agreement, HC or NOC revenues from the oil produced are made up of the licence fee, either in cash or in kind at the request of the HC or NOC, and an income tax that the IOC must pay on its net production income. Other taxes and royalties that could be included in a special tax on mineral oils are paid on excess profits. Under the Production Sharing Agreement (PSA) and Service Contract (SC) system, the IOC is designated as a contractor and, in accordance with the concession agreement, it is called a concessionaire. The difference on behalf of the IOC is related to the different role of the IOC in each type of contractual agreement. In the case of commercial production, HC owns the oil produced, with the exception of a share that is allocated to the contractor to cover its costs and expenses as well as for the share of profits. The IOC owns all production and can dispose of it freely, subject to the obligation to pay royalties and, if necessary, to comply with the requirements of the local market.