Concession AgreementIn the typical oil and gas concession agreement, oil-producing countries or a competent management authority grant contractors the operation of oil projects and the right to develop projects in exchange for a number of in-kind payments or contributions. This source of government revenue can take many forms, but generally includes one or more of the following: fixed rents, royalties (based on sales), surcharges (effective reduction of the potential for increase of sponsors) and taxes (income and tariffs). Thanks to our know-how and extensive network, we can provide all the commercial, financial and technical services necessary to conclude and implement this agreement. Our services include assessing potential risks. Estimate the benefits of entering into this contract. The search for a partner, investor, etc. ` providing financial services` provide the basis for the conclusion of a contract with public or private companies” and beyond The terms of a concession contract depend largely on its usefulness. For example, a contract to operate a food concession in a popular stadium cannot offer much to the dealer in the kind of incentives. On the other hand, a government that wants to attract mining companies to an impoverished area could offer significant incentives. These incentives could include tax breaks and a lower royalty rate. Example 3: United Kingdom – Channel Tunnel Link (High Speed 1) – Concession agreement between the Secretary of State for Transport and High Speed 1 Limited (HS 1 Limited).
The agreement covers the design, construction, financing, operation, repair and maintenance of the high-speed rail link linking St Pancras station in London to the Channel Tunnel, which is connected to international high-speed lines between London and Paris and London and Brussels. The European Union and national legislation require third-party access. A common area of concession agreements between governments and private companies provides for the right to use certain parts of public infrastructure, such as railways.B. Rights may be granted to individual companies, resulting in exclusive rights, or several organizations. As part of the agreement, the government may have construction and maintenance rules as well as current operating standards. The granting of property or property by a government may be a lease agreement for a specific purpose, in exchange for services or a specific use, a right to performance and to the benefit of a particular activity. A concession may include the right to use certain existing infrastructure necessary to run a business (for example. B a water system in a city); in some cases, such as mining. B, it can only be a transfer of exclusive or non-exclusive reliefs. Service Agreement As part of the service contract agreement, the services company bears all exploration costs, such as the contractor`s relationship with an oil-producing country under PSA.
When production is created, the contractor pays for its production costs and a royalty per barrel of oil produced by the supplier. Our highly qualified teams assist you at all stages and provide all technical and financial services for this agreement. Farm out AgreementThe International Farm out Agreement is based on the fact that a party transfers to a second party the shares or interests of the rights of a specific oil and gas development project.