Dec 062020

Under the concession contract, the IOC is a concessionaire, while the IOC is a contractor according to PSA. Examples of agreed service agreements and areas covering types of oil and gas exploration and production agreements concluded by the microsource group with sub-sectors depending on the project: the three types of oil contracts are usually signed between an oil company or a consortium and a government. They generally settle the following areas: The concept of a concession is that a party (usually a government, but the term also applies to private entities) has monopoly rights (including, but not limited to property rights) over a resource or activity. This part then allows another party (the dealer) to enjoy certain specific rights to the resource or activity by ceding some form of concession or licensing contract. Concessions and licences therefore specify the specific rights and obligations of the parties. In the oil and gas industry, governments generally retain all oil exploration and development rights and allow oil and gas companies to undertake various activities through oil licensing agreements. Specific licensing regulations vary between legal systems, although there are common functions found in most licensing systems. The licensing system generally includes a series of licensing cycles during which research, development and production rights from certain geographic areas or “blocks” are allocated to bidders. As a general rule, different types of licenses are issued for certain categories of activities. As a result, governments generally grant separate authorizations for exploration and production. For example, exploration licences should not allow licensees to drill wells. The licensing regime will generally include specific provisions relating to the tax and tax regime applicable to the project concerned. Depending on the type of concession, the IOC owns all the oil produced from the territory of the agreement, with the exception of the ioc`s share of the licence to be paid to the HC or NOC.

However, HC still owns the oil until the drilling site before production. The oil and gas industry operates in countries around the world in accordance with a number of types of agreements. These agreements can generally be categorized into one of four categories (or a combination of categories): risk agreements, concessions, production sharing agreements (PSA, also known as production sharing contracts, PSCs) and service contracts. Production allocation, concession and service agreements are the three fundamental types of contractual agreements in the field of oil exploration and production. These agreements are between the host country (HC) where exploration and production activities take place, whether in onshore or offshore areas, and its national oil company (NOC) and an oil company (CIO). The IOC may be made up of a company or group of companies (consortium) and may be local or international. Oil palm and timber concessions are two main culprits for the loss of tropical forests in Southeast Asia. Most of the world`s palm oil comes from tree plantations in Indonesia and Malaysia. In 2016, Indonesia produced 34,520,000 tons of palm oil and Malaysia 17,320,000 tons. To meet the strong global demand for palm oil and wood, the primary forests of the Indomal islands of Sumatra and Borneo quickly turned into oil palm and wood plantations.

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