Title:The Resolution of Disputes under Petroleum Production Sharing Agreements
Author(s): Thomas R. Snider (View Profile)
Journal: Indian Review of International Arbitration
Source: www.iriarb.com
Abstract:
While petroleum-producing countries worldwide rely on proceeds from oil revenues for projects of national interest, they frequently lack the necessary capital needed to explore, produce, market, and sell petroleum products to the end-user. As a result, national governments frequently enter into agreements with private companies to undertake these activities. Production sharing agreements [“PSAs”] are a common type of contractual framework that petroleum producing countries use when they enter into an agreement with companies to explore for and develop petroleum. Under PSAs, the state splits revenue with an oil company pursuant to an agreed structure for an extended period of time. PSAs often operate in the context of volatility in petroleum markets and unpredictable geopolitical landscapes, which creates conditions where disputes are strife. This article discusses the advent of PSAs in the petroleum industry, the types of provisions typically found in PSAs, the types of disputes that commonly arise in relation to PSAs, and the types of claims and damages that are pursued in these disputes.
Cite this as: Thomas R. Snider, The Resolution of Disputes under Petroleum Production Sharing Agreement, 2 IRIArb (2022).
Keywords: National Interest, Production Sharing Agreements, Volatility in Petroleum Markets, Unpredictable Geopolitical Landscapes
*The views expressed are of author(s) only.
