Contractual Systems in the Oil and Gas Sector: Current Status and Development
Production activities in the oil and gas industry are capital-intensive and associated with high technology, with these assets not always being available to oil-producing countries or national companies. Any form of interaction between the parties involved in natural resource extraction requires cle...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-09-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/17/5497 |
| _version_ | 1797521483589746688 |
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| author | Fatima Dirani Tatiana Ponomarenko |
| author_facet | Fatima Dirani Tatiana Ponomarenko |
| author_sort | Fatima Dirani |
| collection | DOAJ |
| description | Production activities in the oil and gas industry are capital-intensive and associated with high technology, with these assets not always being available to oil-producing countries or national companies. Any form of interaction between the parties involved in natural resource extraction requires clear regulation regarding contractual relationships. This study attempts to analyze Indonesia’s production sharing contract system in order to assess its applicability to other conditions. The article covers the key aspects of contract theory, provides a classification of contractual systems in the oil and gas sector, and discusses the most common types of contractual agreements. It also considers the key principles of production sharing contracts (PSCs), analyzes the development of PSC practices in Indonesia over the past sixty years, and highlights PSC advantages and disadvantages. |
| first_indexed | 2024-03-10T08:12:13Z |
| format | Article |
| id | doaj.art-f086b2b9a601427580f3b7dcde92c91f |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T08:12:13Z |
| publishDate | 2021-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-f086b2b9a601427580f3b7dcde92c91f2023-11-22T10:35:36ZengMDPI AGEnergies1996-10732021-09-011417549710.3390/en14175497Contractual Systems in the Oil and Gas Sector: Current Status and DevelopmentFatima Dirani0Tatiana Ponomarenko1Faculty of Economics, Saint-Petersburg Mining University, 21st Line V. O., 2, 199106 Saint Petersburg, RussiaFaculty of Economics, Saint-Petersburg Mining University, 21st Line V. O., 2, 199106 Saint Petersburg, RussiaProduction activities in the oil and gas industry are capital-intensive and associated with high technology, with these assets not always being available to oil-producing countries or national companies. Any form of interaction between the parties involved in natural resource extraction requires clear regulation regarding contractual relationships. This study attempts to analyze Indonesia’s production sharing contract system in order to assess its applicability to other conditions. The article covers the key aspects of contract theory, provides a classification of contractual systems in the oil and gas sector, and discusses the most common types of contractual agreements. It also considers the key principles of production sharing contracts (PSCs), analyzes the development of PSC practices in Indonesia over the past sixty years, and highlights PSC advantages and disadvantages.https://www.mdpi.com/1996-1073/14/17/5497production sharing contract (PSC)production sharing agreement (PSA)concessionIndonesiaoil and gas sectorcontracts |
| spellingShingle | Fatima Dirani Tatiana Ponomarenko Contractual Systems in the Oil and Gas Sector: Current Status and Development Energies production sharing contract (PSC) production sharing agreement (PSA) concession Indonesia oil and gas sector contracts |
| title | Contractual Systems in the Oil and Gas Sector: Current Status and Development |
| title_full | Contractual Systems in the Oil and Gas Sector: Current Status and Development |
| title_fullStr | Contractual Systems in the Oil and Gas Sector: Current Status and Development |
| title_full_unstemmed | Contractual Systems in the Oil and Gas Sector: Current Status and Development |
| title_short | Contractual Systems in the Oil and Gas Sector: Current Status and Development |
| title_sort | contractual systems in the oil and gas sector current status and development |
| topic | production sharing contract (PSC) production sharing agreement (PSA) concession Indonesia oil and gas sector contracts |
| url | https://www.mdpi.com/1996-1073/14/17/5497 |
| work_keys_str_mv | AT fatimadirani contractualsystemsintheoilandgassectorcurrentstatusanddevelopment AT tatianaponomarenko contractualsystemsintheoilandgassectorcurrentstatusanddevelopment |