Productions Sharing Contracts (PSC) or Production Sharing Agreements (PSA’s) are a common way of regulating the exploitation of hydrocarbons in many parts of the world, particularly in Eastern Europe, the Middle East, the Far East, Africa, and South America.
A PSC/PSA is a contract between the State, which is normally administered by the Ministry of Resources and represented by the State owned National Oil Company, and an Operator, which has executed a Joint Venture Operating Agreement for the Production Sharing Contract Area.
We help you to make the best use of what the contract allows you to do, no matter whether you are the State or Operator through the provision of the following services:
- Audits on behalf of the State to ensure that the Contractor Group has conducted all PSC/PSA Operations in compliance with the terms and conditions of the Production Sharing Contract
- Advisory services to the Operator to ensure they are optimising their cost recovery structure, thereby making sure that they do not miss out on any opportunity of recovery allowed by the contract just because of misinterpretation of the PSC, ineffective internal processes, policies and procedures unfit for purpose, incomplete supporting documentation maintained or the set-up of the accounting system are unfit for purpose
Further to this, our team at Wolverine.consulting can ensure both groups have satisfied its operational, financial, tax and reporting obligation to all relevant authorities, as stipulated by the PSC/PSA.
You can read more about Production Sharing Contract audits by downloading our whitepaper here.