Upstream Gas Agreement

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. As a result of the Ministry`s actions, 72 new agreements were signed with several major international companies in the last period from October 2013 to October 2019 and 27 agreements were amended with a total of 99 agreements, with a total investment of $15.728 billion and a signing bonus of $1.195 billion with 401 wells. Oil and gas exploration and extraction agreements are the backbone of the oil sector in particular and the state in general. Under these agreements, oil and gas exploration and exploration activities are carried out through foreign, Arab and Egyptian companies, which in turn invest billions of dollars as direct investments to increase and support oil and gas production, in addition to indirect investments that have a direct impact on the country`s public treasury and domestic product. , as well as increased exploration and development and the resulting increase in production rates. which ultimately contributes to the national economy. Examples of services agreements adopted and areas covered This has not resulted in delays, postponements or expected investment. This was clearly contrary to the interests of host governments. Treaties do not provide for waivers of unexplored areas. Other more traditional concession agreements have granted the IOC “in situ” oil, with market and price powers. Royalties were flat or fixed for unit rates and were sometimes credited with income tax. There was no or little signing bonus and sometimes no income tax.

These conditions have often been “frozen” for the duration of the agreement. Angola, Egypt, Kenya, Tanzania, Uganda and Mozambique are among the countries following the production sharing agreement model, while Ghana uses the project contract model for exploration and production concessions. To begin implementing this plan and as a first step, it is necessary to include in the oil agreements model posts encouraging and encouraging foreign partners to invest, particularly in view of the high cost of the development of discovery in general and the deep-sea areas in the Mediterranean in particular and the risk factor. That is why some of the points of the new agreements have been highlighted, which aim to achieve an adequate return on investment, which encourages the foreign partner to invest more and start producing as soon as possible, in order to meet the needs of the internal market, especially gas, and to promote a balance between the interests of the parties. All three types of oil contracts are usually signed between an oil company or consortium and the government. As a general rule, they regulate the following areas: 5) the types of upstream oil agreements with the state do not confer ownership rights on oil production to the company or consortium that concludes the agreement.