Based on your critical awareness and understanding of concessions and production sharing contracts PSCs) as legally enforceable agreements, advise which type of contract would be the most appropriate and why.

please stick to production sharing contract and concession IN PART A OF THE QUESTION…

_Paper to be attached before final confirmation of order
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Added on 19.11.2015 13:08
Part A

The state of Oilatrovia is confident that preliminary seismic investigations recently carried

out by its National Oil Company has discovered a promising amount of natural resources

(oil). Now it seeks your advice about the forms of petroleum agreement commonly used

with International Oil Companies particularly in the E&P stage. It has asked that you

submit a comprehensive written report using appropriate sources of information and

evidence to help it determine the type of agreement that would be beneficial for

Oilatrovia.

Based on your critical awareness and understanding of concessions and production

sharing contracts PSCs) as legally enforceable agreements, advise which type of contract

would be the most appropriate and why. Remember to consider the factors that

Oilatrovia must be mindful of when entering into an agreement with an International Oil

Company and whether any other contract models would be appropriate at this stage.

Word count: 1500

PART B

The Shah Deniz (II) is a large offshore field estimated to contain about 18 billion cubic metres of gas and 100 million barrels of oil. It is located in the Continental Shelf of the Azerbaijan Republic. Sokoto Oil Plc, a large multinational company (MNC) signed a 30 year production sharing contract (PSC) with the Azerbaijan National Oil Company (ANOC) in 2012. The projection was that the Shah Deniz field would be developed at a total cost of $40 billion and that it would be producing commercially viable oil by 2015. The Sokoto Oil Plc /ALNOCs PSC was designed to be flexible allowing for the readjustments of the allocation of risks and returns to be dependent on ex post considerations such as capital costs and profitability. The parties have included a renegotiation and adaptation clause as part of the terms of the PSC. As of 2013, the Shah Deniz (II) field had not begun to pump oil on a commercially viable basis due to last a minute territorial issues that ensued IRAN, RUSSIA and AZERBAIJAN. Critically discuss the role that the principle of permanent sovereignty over natural resources has played in the evolution of host state agreements (HSAs) between oil producing states and international oil companies (IOCs). How has this principle affected the rights of IOCS in host state agreements particularly in relation to significant financial investment?

Word count: 1500

{PLEASE ENDEAVOR TO EXPATIATE ON LAW OF SOVEREIGNTY IN PART B }

ABOVE ALL THIS WORK SHOULD BE 3000 WORDS EXCLUDING REFERENCES.. THANKSS