Types of Oil and Gas Agreement free essay sample

Concessions are the oldest and most widely used type of agreement. Examples of countries that adopt this type of agreement include: United States, United Kingdom, Kuwait, Australia. Under the Joint Venture agreement, the International Oil Companies and the National Oil Companies form a Joint Venture. Each Joint Venture Partner pays/receives its share in proportion to its Participating Interest. The major problem with this type of agreement is its low success rate. It is therefore, less commonly used. Examples of countries that adopt this type of agreement include: Cameroon, Pakistan, Colombia, Netherlandsring Contract, the Company is initially responsible for all exploration and development costs. When production begins, the oil is shared between the Company and the Government (or the national oil company). The oil stream is first of all divided into two parts: Cost oil and Profit oil. Examples of countries that adopt this type of agreement include: Egypt, India, Sri Lanka, Angola. We will write a custom essay sample on Types of Oil and Gas Agreement or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page HYBRIDS Hybrids is a combination of Concession / Joint Venture / Production Sharing Contract. Efforts to develop a world model Hybrid agreement have been unsuccessful because structures are becoming more diverse. Examples of countries that adopt this type of agreement include: Tanzania, Libya, China, Nigeria.