RESEARCH & ANALYSIS
PETROLEUM AGREEMENTS:
THE PILLAR OF ATTRACTING INVESTMENT OVER 2020 & 2021 BY JOLLY MONSEF, MARIAM AHMED & YOUSTINA MOUNIR
T
he petroleum agreements are the backbone of the petroleum sector that aim at attracting more investments in oil and gas exploration activities. All oil and gas exploration and development agreements in Egypt are operating according to production sharing agreements (PSAs). Under PSAs, international oil companies (IOC)s sign agreements with national oil companies (NOC)s, which are represented in Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Company (EGAS) and Ganoub El Wadi Petroleum Holding Company (GANOPE), according to the Egypt Upstream Gateway (EUG) website.
FRAMEWORK OF PSAs
Royalty
Total Government’s Share
Government’s Share
Gross Production
Profit Oil Income Tax
Contractor’s Share
Cost Oil
16 | EGYPT OIL & GAS NEWSPAPER
Total Contractor’s Share Contractor’s After-Tax Share