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PSK involves granting certain rights (prospecting and production) of a host government to an international oil company (IOC) in order to research and develop post-development activities for hydrocarbon resources. They are of great value; represent a significant investment (for the IOC); and often have a higher risk profile. By definition, a production-sharing contract (CSP) is a contract between one or more investors and the government, which defines the rights to prospect, explore and exploit mineral resources in a specified area over a specified period of time. In other words, a COPS is an agreement between the parts of a well and a host country regarding the percentage of oil and gas extraction that each party receives after the parties have recovered a certain amount of costs and expenses. Some of the arguments go back to when the agreements were in effect. Changes in personnel and processes on both sides can change the understanding of the language of the treaty. Changes in tax practices or political problems in the country can cause other problems. Enterprise or subcontracting agreements and non-aligned business cycles are the source of a few. Production Sharing Contract (PSC) is a term used in the hydrocarbon industry and refers to an agreement between the contractor and the government, whereby the contractor bears all exploration, production and development costs in return for the share it has determined in the production (of profits) resulting from these efforts. The costs incurred by the contractor are eligible in the event of a commercial discovery. The CSP is therefore an existing tax system for hydrocarbon exploration and production. Sakhalin-2 PSA provides a specific tax regime for project development.

Most taxes and tariffs are replaced by the distribution of production. Production sharing under the Sakhalin-2 project was launched in 2012. Let us be a little deeper in the definition of a production sharing agreement (EPI) whose purpose, key elements, benefits and problems are plunging. Production-sharing agreements can be beneficial for governments in countries that lack expertise and/or capital to develop their resources and wish to attract foreign companies. They can be very profitable agreements for the oil companies involved, but they often present a significant risk. The production-sharing contract is one of the most important forms of contracts/legal agreements in the oil and gas industry. The purpose of any contract is to define rights; The obligations and obligations of the parties in terms of both performance and behaviour.