Production Sharing & Joint Venture Agreements

International oil and gas companies secure rights to explore, appraise, develop and produce hydrocarbons from host governments (or their national oil companies) under the terms of certain licence or fiscal agreements. Such an agreement allows an oil company to invest and explore for oil or gas in return for a share of the production (either by way of revenue or production share) if successful – a sharing of risk and reward.  Agreements vary from production sharing, risk or technical service agreements to tax and royalty concession agreements, the agreements also vary in fiscal and commercial complexity based on maturity of the oil province or attractiveness of the prospects.  The rights to explore or develop hydrocarbons are either tendered or negotiated directly with interested parties, bid rounds are more common place in the industry.

ECC has significant experience in evaluating and negotiating the terms of PSCs and concession agreements across different fiscal regimes and can provide clients with detailed commercial, economic and financial support in negotiations with governments, in the development of bid terms or in the optimisation of existing commercial arrangements.

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