6.1 Legal clauses
The PSC provides an elaborate mechanism for the control and supervision of of the activities relating to the exploration, discovery, development and production of crude oil/natural gas and associated hydrocarbons from the relevant field. It distributes title over the crude oil/natural gas and associated hydrocarbons between the government and each of the consortium members. The various clauses are being described below under various sub heads.
6.1.1 Rights granted by PSC
The major rights vests by the PSC with the selected consortium include:
The exclusive right to :
a) Undertake, within the specified area, operations conducted in searching for crude oil, natural gas and related hydrocarbons, and undertake drilling of wells …show more content…
In such circumstances, the party concerned is relieved from liability. The party claiming an event of force majeure is often required to use reasonable efforts to remove the causes of non-performance and to complete performance as promptly as possible.
The term “force majeure” provisions usually include common features, such as:
• a detailed definition of a force majeure event;
• the obligations surrounding a force majeure event: these usually require the party claiming force majeure to serve notice to the other party and use all reasonable efforts to correct the situation as promptly as possible;
• examples of events which constitute a force majeure event: this is usually a standard list and may be exhaustive or non-exhaustive; however, some jurisdictions have a broader list of examples than others; …show more content…
Generally, such payments are not recoverable from cost oil and are in addition to the Contractor’s minimum expenditure commitments. The Contractor is typically required to pay various taxes in accordance with the applicable laws of the jurisdiction, including income tax, export tax and duties, import duties, and stamp duty. Royalties are payable by the Contractor to reflect its usage and exploitation of the State’s property and are typically agreed upon as a percentage of the amount or value of available oil and/or gas from the contract area. The rate is dependent upon a number of factors such as the contract area, the size of the project, and the bargaining power of the Contractor. Royalties are generally allowed as a deductible tax in calculating the Contractor’s income for tax
The PSC provides an elaborate mechanism for the control and supervision of of the activities relating to the exploration, discovery, development and production of crude oil/natural gas and associated hydrocarbons from the relevant field. It distributes title over the crude oil/natural gas and associated hydrocarbons between the government and each of the consortium members. The various clauses are being described below under various sub heads.
6.1.1 Rights granted by PSC
The major rights vests by the PSC with the selected consortium include:
The exclusive right to :
a) Undertake, within the specified area, operations conducted in searching for crude oil, natural gas and related hydrocarbons, and undertake drilling of wells …show more content…
In such circumstances, the party concerned is relieved from liability. The party claiming an event of force majeure is often required to use reasonable efforts to remove the causes of non-performance and to complete performance as promptly as possible.
The term “force majeure” provisions usually include common features, such as:
• a detailed definition of a force majeure event;
• the obligations surrounding a force majeure event: these usually require the party claiming force majeure to serve notice to the other party and use all reasonable efforts to correct the situation as promptly as possible;
• examples of events which constitute a force majeure event: this is usually a standard list and may be exhaustive or non-exhaustive; however, some jurisdictions have a broader list of examples than others; …show more content…
Generally, such payments are not recoverable from cost oil and are in addition to the Contractor’s minimum expenditure commitments. The Contractor is typically required to pay various taxes in accordance with the applicable laws of the jurisdiction, including income tax, export tax and duties, import duties, and stamp duty. Royalties are payable by the Contractor to reflect its usage and exploitation of the State’s property and are typically agreed upon as a percentage of the amount or value of available oil and/or gas from the contract area. The rate is dependent upon a number of factors such as the contract area, the size of the project, and the bargaining power of the Contractor. Royalties are generally allowed as a deductible tax in calculating the Contractor’s income for tax