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This Agreement Provides for Phase I and II Tract Participation, Form

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This Agreement Provides for Phase I and II Tract Participation, Form

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[Music] a production sharing agreement or PSA is a contract between a government and an oil company or sometimes a group of companies it grants the company the right to explore for produce and sell oil and gas in a specified region PSAs are particularly common in developing countries or nations with limited Technical Resources for oil and gas development they provide a balanced structure where the government can maximize Revenue without bearing the initial Financial risks PSAs are structured to ensure both parties benefit the government retains ownership of its resources and receives a portion of the profits the company invests its own funds to explore and if successful extract oil or gas and share profits while covering its costs key components of a PSA ownership and control of resources under most PSAs the government retains ownership of the natural resources this allows the government to maintain sovereignty over its oil and gas assets meaning that even though the company is produci

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