Joint Ventures (Operating) AgreementThis grouping of two or more companies, private or public companies or a combination of private and public companies, can be described as a joint venture (“JV”). Typically, a joint venture consists of contractors and a national oil company (NOC). In addition, the underlying contract is considered to be essentially an EPI awarded by the government to the contractor. Contractors and NOCs form a joint enterprise on a 50/50 basis. The contractor runs NOC (paying all costs) through the minimal exploration program under the EPI. The management and other activities required by the EPI are carried out by the EC. The provision of a joint enterprise agreement to the oil and gas industry includes technical and commercial analyses and services to optimize and develop this agreement in this area. Production Sharing Agreement (PSA) “The PSA is a contractual agreement between foreign contractors or FOCs and a designated public company – National Oil Company (“NOC”) that authorizes contractors to conduct oil exploration and exploitation in a specified area, in accordance with the rules and conditions of the agreement. The PSA is a risky contract under which the FOC receives compensation for costs and profits in the form of hydrocarbons and “THE FOCs take them as products in their accounting system and then the hydrocarbons taxed by the corresponding tax administration. Based on our extensive experience in concluding this contract, we can offer our customers well thought-out commercial and technical services at all stages, from idea to implementation. RSC is defined as a contract under which a contractor undertakes to carry out work (services) in order to increase the production of hydrocarbons at its own expense and risk, with the right to acquire a portion of the incremental quantities of hydrocarbons as compensation and compensation for the contractor`s costs.
All geological, technical, technological and financial risks associated with the implementation of RSC are therefore borne by the contractor and neither the clandestine user nor the government of Uzbekistan is responsible for their reimbursement.