Introduction

Production Sharing Agreements (PSAs) are one of the most common types of contract arrangements for exploring and developing oil and gas. Under a PSA, the State is the owner of the mineral resources in question, but agrees with a private company, or sometimes with a national oil company of another state– usually a foreign investor – to provide technical and financial services for exploration and development of the resources. The State is usually represented by the government or by the national oil/gas company. The foreign company is entitled to a stipulated share of the oil/gas ...