Pure Service ContractsA service contract is a contract between a contractor and a host government that generally covers a defined technical service that must be provided or concluded for a certain period of time. The investment of the service company is generally limited to the value of the equipment, tools and personnel used to perform the service. In most cases, the reimbursement of the service contractor is determined by the terms of the contract, with little consideration given to project performance or market factors. Payment for services is usually based on daily or hourly rates, a turnkey fixed rate or other specified amount. Payments can be made at specified intervals or after the service is completed. Based on our understanding and decades of experience in the oil and gas industry, our oil and gas team provides all commercial, financial and technical services for the conclusion of this agreement. Concession AgreementIn the typical oil and gas concession agreement, oil-producing countries or a competent management authority grant contractors the right to develop oil 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 estimating potential risks. Estimate the benefits of entering into this contract. Seeking a partner, investor, etc.` Providing financial services` provide the basis for entering into a contract with public or private companies” and beyond The oil and gas industry works in countries around the world in accordance with a number of types of agreements.
These agreements can generally be categorized into one of four categories (or a combination of categories): risk agreements, concessions, production sharing agreements (PSA, also known as production sharing contracts, PSCs) and service contracts. Traditional concession agreements before 1940 were granted to large territories, sometimes to the whole country, for example. B irak. These grants were long-term (50 to 99 years). The IOC has had all the discretion and control to explore and verify whether or not a particular field can develop. Joint Ventures (Operating) AgreementThis grouping of two or more companies, private or public companies or a combination of private and public companies, can be described as a joint venture (“JV”). Typically, a joint venture consists of contractors and a national oil company (NOC). In addition, the underlying contract is considered to be essentially an EPI awarded by the government to the contractor. Contractors and NOCs form a joint enterprise on a 50/50 basis. The contractor runs NOC (paying all costs) through the minimal exploration program under the EPI.