Advantages and Disadvantages of Service Contracts and Production Essay

Advantages and Disadvantages of Service Contracts and Production Sharing Contracts - Essay Example In many countries where oil and gas are being produced, made abrupt and unilateral changes in the already executed agreements. This unilateral change at the end of oil and gas producing countries hit hard the investors. This would definitely shake the confidence of the investors who invested a lot of money in oil and gas projects. The governments of Venezuela and Bolivia have gone to the extent of breaking the contracts or termination of licenses at their own sweet will. This move can be branded as â€Å"resource nationalization†. To lessen the negative impact on the profitability of the investing companies, the sovereign governments of Canada, UK and the USA have proposed compensation in terms of further extension of their contracts on soft terms to address this issue1. To safeguard the interest of the investor companies came from abroad, the effective legislation is necessary to mitigate the risks associated with it. However, the legislation in this respect varies from count ry to country. This does not only effectively take care of the interest of the host countries but the interest of the investors those who are in the run. ... On the other hand, the state in return will receive royalty payments, income tax and other liveable taxes on the oil and gas producing companies. Contrary to that as per PSC the government will be the owner of all oils and gas productions, and the IOC will act as technical and financial services provider to take care of oil exploration and the development of oil wells / gas fields. Alternatively production will be shared between IOCs and the State in line with the provisions of PSC3. In the developing dominions, PSC system is an effective tool to access oil and gas exploration as well as development of oil wells. As per Johnston view, this access dependable on the political system of that country. As far as functional and financial considerations, the PSC system is more or less at par with concessionary system. The only difference between the two is the management control and its effective implementation4. Upstream Oil & Gas Agreements Overview Upstream agreements in fact create and establish legal business entity and working relationship between the sovereign government and the individual who owns land of exploration for oil and gas. The agreement is a legal document where rights and obligations of the stakeholders are clearly defined, leaving no ambiguity5. In the developed countries like USA, Canada and the UK where two forms of agreements are in existence. One is for the execution of individual land owner for exploration of oil and gas, the other one between the host government and the investor. The agreement executed between the host country and the investment company is called â€Å"Concession Agreement and the Production Sharing Contract† 6. In other words the

Sheltering the Deep Assignment Example | Topics and Well Written Essays - 500 words

Sheltering the Deep - Assignment Example Jessen emphasizes the need to protect depleting marine ecosystems from pollution and other human interventions. She underscores the need to find new ways to protect these marine environments, and bats for the concept of marine protected areas, that have been successful in other parts of the world. Although she concedes that marine protected areas are not the solution to all the problems; she encourages the reader to take a fresh look at the various species that exist in an ecosystem, and consider the symbiotic relationship they share. Her efforts are directed towards awakening the reader to the rich cultural heritage of the region that preserves early forms of life on earth as well as some unique plant life, and the need to protect it before it is too late. The author’s diction conveys her love of the treasures in the deep. Her choice of words like â€Å"adorn the underwater cliffs† (185) to describe the underwater plants and animals conveys the fact that she considers these jewels of the sea. Jessen conjures up striking word pictures of the beauty of nature’s bounty. Her use of metaphors like â€Å"perched off the southern tip of Vancouver Island† (185) conjures up a picture of a bird, ready to fly away at the merest hint of danger. Jessen’s extensive use of alliteration to describe nature’s beauty gives an almost poetic quality to the piece. When the author describes â€Å"other marine mammals† that â€Å"frequent the waters foraging† (185); or her portrayal of â€Å"soaring walls and spectacular scenery† (187) of the fiords of Baffin, enhances the aesthetic appeal of the essay. Her use of euphony as in â€Å"speckled trout spawn in the shallow bays†, (186) gives a harmonious mellowness to the piece that is both pleasing to the ear as well as conveying the harmonious nature of an ecosystem. Jessen’s use of denotation when she describes the fate of ancient mariners pitted against the â€Å"treacherous waters and well known fury of Lake