Hadi Dibavand; Ali Taherifard; Ali Faridzad; Atefeh Taklif; mohammad mahdi bahrololoum
Abstract
IRAN`s new petroleum contract is a new generation of service contract which aimed to fix bugs from Buy-Back model. In this model some incentives have inserted to increase contractors' motivations. In this study, we consider fiscal differences and revenue division of the two models in the case of phases ...
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IRAN`s new petroleum contract is a new generation of service contract which aimed to fix bugs from Buy-Back model. In this model some incentives have inserted to increase contractors' motivations. In this study, we consider fiscal differences and revenue division of the two models in the case of phases 4 & 5 of the South Pars gas field. This study is conducted by fiscal simulation for two mentioned models and comparison the results. It is concluded that, government revenue in Buy-Back model throughout the period of production in phases 4 & 5 is bigger around 29% and 11% respectively in regard of the net present value and the discounted net present value. Also, if in Buy-Back model, production decline starts at the first year after fiscal settlement with contractor by the rate of more than 3% yearly, then it is better for the government to employ new contract model instead of Buy-Back model regarding revenue
Davood Manzoor; Roohollah Kohan Hoosh Nejad; Masoud Amani
Abstract
Fiscal regime is one of the main differences between petroleum contracts. Fiscal regimes in oil contracts are divided in two main categories namely Concessionary and Contractual Systems. In contractual systems, the main difference between service and production sharing contracts is the way of compensation ...
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Fiscal regime is one of the main differences between petroleum contracts. Fiscal regimes in oil contracts are divided in two main categories namely Concessionary and Contractual Systems. In contractual systems, the main difference between service and production sharing contracts is the way of compensation of contractor services which could be in cash or in kind. In production sharing contracts the contractor receives a portion of produced oil. One of the main criteria to compare fiscal regimes is government and contractor takes in real values. Comparing the net present value of contractor take shows that PSC could have been more desirable and cost effective in Azadegan, Soroush & Norouz, Forouzan & Esfandyar oil fields than Buy-Back contracts.
