Training POD WP&B and AFE Concepts Based on Production Sharing Contract Aspects
POD, WP&B, and AFE CONCEPTS based on PRODUCTION SHARING CONTRACT ASPECTS
Training POD, WP&B, and AFE Concepts Based on Production Sharing Contract Aspects - The PSC originated in the 1960s in Indonesia. It has now spread around the world. This model reflects a much cleaner separation between state (politics, bureaucracy) and the investor. The production-sharing contract, over the last 40 years, the probably most dominant form of granting access to oil & gas exploration and development to international petroleum companies in developing countries. Its distinct character is that production is shared rather than tax/royalties being paid and that the foreign/national investor (now contractor) is in a contractual relationship with the Government which holds the original mining title. The Government may exercise quite lose control or much more close control over management. Functionally and financially, the PSC models need different in terms of management control, depend on the specific management system established and on the way it is implemented. Contracts can be...