Production Sharing Agreements Research Articles

Application of Business Ethics By Shirkah Contract: A Case Study of Indonesian Farmer Tradition

Economists argue that positivism refers to science and economic activities should be value-free. This means that the norm variable is not included as a variable that has an important meaning for both output and production input. This is not the case with Islamic economics, which firmly states that economic activity is bound to value or is not value-free. This research aims to show evidence of shirkah or profit-sharing contracts and to dissect how elements of values and ethics accompany the business activities of Indonesian farming communities. The method used is a qualitative approach with case study techniques. Literature studies are also used to strengthen the validation and triangulation stages. This research shows that Shirkah contracts are found in agricultural activities in various regions in Indonesia, including those known as maro (50:50), mertelu (1:3), etc. Shirkah, as one of the contracts in Sharia finance, is an actual implementation of enforcing norms and ethics. The Shirkah contract manages the risks inherent in all business cycles, both during profits and losses, which is typical in all sectors. Shirkah contracts systematically work and control competition and business risks with an ethical and normative approach. The Shirkah contract also suppresses economic injustice and unequal distribution of resources and business profits. The domino effect of the values of the sharia contract is not only limited to production-sharing agreements between sharecroppers and land owners but also spreads to the spirit values of sale and purchase (Murabaha) and rental (ijarah) agreements and includes broad implications for all aspects life. Farmers and cultivators are actively involved in upholding the values of justice, risk sharing, and togetherness in facing the cycle of profit and loss that automatically occurs as a lifestyle. Musharaka, Morals-ethics, Risk management, Way of life

Соглашения о разделе продукции: нелегкая судьба в России

The article provides a brief historical analysis of the conclusion and implementation of production sharing agreements (PSA) in the Russian Federation, stages of development of legislation in the field of PSA regulation. The author analyses changes in the legal regulation of PSA over the past two years, which led to changes in the composition of subjects and provisions of production sharing agreements in force in the Russian Federation. Based on the analysis conducted, conclusions are drawn about possible options for further development of the PSA institution in the Russian Federation, including the possibility of replacing PSA with a subsoil use regime on the basis of a license agreement in accordance with the Law of the Russian Federation “On Subsoil”.

PERAN KEPALA DESA TERHADAP PERLINDUNGAN BAGI PENGGARAP DALAM SISTEM BAGI HASIL PERTANIAN DI DESA

The regulation regarding production sharing agreements in Indonesia has been regulated based on Law Number 2 of 1960 concerning Revenue Sharing Agreements, the profit sharing agreements that occurred in the Nagrak Village Area, Cianjur District, Cianjur Regency, the arrangement still uses the arrangement of profit sharing agreements according to local customary law. The role of the Village Head in this case is very necessary so that there is no dispute between the two parties in the implementation of the agricultural land production sharing agreement. As for the identification of the problem in this research, namely, whether the production sharing system for agricultural land in Nagrak Village, Cianjur District, Cianjur Regency has complied with the provisions of Law Number 2 of 1960 concerning Production Sharing Agreements? in Nagrak Village, Cianjur District, Cianjur Regency?, and what steps did the Head of Nagrak Village, Cianjur District, Cianjur Regency take in resolving the obstacles faced by farmers and cultivators in the agreement for agricultural land yields?. This research uses a normative juridical approach, which examines juridical data on the application of agricultural land production sharing agreement regulations. It is concluded that the regulation regarding production sharing agreements for agricultural land in Indonesia is still using Law Number 2 of 1960 concerning Production Sharing Agreements. The form of the agreement is made in writing before the Village Head and ratified by the Camat, but in practice Law Number 2 of 1960 concerning Profit Sharing Agreements is still not effective this is due to the ignorance of the local community with the existence of Law Number 2 of 1960 concerning Agreements Profit sharing.Keywords: Profit Sharing Agreement, Role of Village Head, Agricultural Land.

Contract Structure of Production Sharing Agreement by International Oil Company in Exploration of Petroleum Resources in Developing Countries

Presently, there is little focus on the contractual agreement, particularly on the production sharing agreement by the International Oil Companies in the exploration of petroleum resources of developing countries. The primary objective of this paper is to critically explore the contract structure of production-sharing agreements by International Oil Companies in the exploration and development of petroleum resources in developing countries. Content analysis was used as the methodology of the study after examining several literatures. The findings indicate that the contract structure of the production sharing agreement (PSA) between National Oil Companies (NOC) and International Oil Companies (IOC) plays a significant role in the cost and risk of exploration and development of oil. In addition, it is noted that the joint committee of the NOC and IOC plays a paramount role in monitoring the operations of PSA between the NOC and IOC. Hence, from the gross oil production, the NOC gets its share as profit while IOC gets its share income tax. As an instrument of contract structure in the oil and gas sector, PSA needs further entrenchment between IOC and NOC to avoid likely issues that can emanate between the two parties in the face of current developments.

ABOUT THE LAW OF THE RUSSIAN FEDERATION “ABOUT PRODUCTION SHARING AGREEMENTS” THROUGH THE EYES OF CHINESE SCIENTISTS

The adoption and implementation of the Russian Law “On Production Sharing Agreements” marks a significant increase in the openness of the Russian oil and gas sector. The purpose of this law is to encourage and attract more foreign direct investment in the Russian manufacturing sector. In the context of the fruitful results of strategic cooperation between China and Russia, the role of the “Crushed Stone Ballast” of energy cooperation was additionally demonstrated. From the point of view of Chinese scientists, this article analyzes the prerequisites for the introduction of the Russian system of production sharing agreements and the goals of the introduction of the system, and, finally, predicts the trend of cooperation between China and Russia in this area.

Pelaksanaan Perjanjian Bagi Hasil Pohon Aren terhadap Petani dan Pemilik di Desa Juhar Ginting Sada Nioga

This study discusses the implementation of palm tree production sharing agreements; what are the legal consequences if one of the parties defaults on the palm tree profit sharing agreement and is there legal certainty for the implementation of the palm tree production sharing agreement in Juhar Ginting Sada Nioga Village based on "Customary Law" and "Law No. 6 of 1960” concerning Production Sharing Agreements. This research is descriptive analytical. The collected data were analyzed using empirical juridical methods. This study found (1) the implementation of production sharing agreements is carried out by means of unwritten or oral agreements, but the implementation is carried out according to the customs that exist in the community. The profit sharing that is carried out is not contrary to Law no. 2 of 1960, but in terms of the form and duration of the production sharing agreement it is not in accordance with the provisions stipulated in the law. (2) The legal consequences arising from defaults that occur in the implementation of the agreement for planting palm tree yields, usually only according to local customary law, namely compensation and cancellation of the production sharing agreement. (3) The principle of legal certainty regarding profit-sharing agreements has not been implemented, this is due to the lack of public knowledge about the law of production-sharing agreements so that the implementers of the agreement only make agreements based on local customs and habits.

Optimization of Exploration and Production Sharing Agreements Using the Maxi-Min and Nash Solutions

Cooperation between supply chain partners in the oil industry is essential, especially when oil prices suffer from fluctuations that affect the profitability of each party. An essential task in oil field development projects is to create an optimum agreement between the national oil company and the international oil company to guarantee agreement optimization. In this paper, the national oil company is the first party (FP) and the international oil company is the second party (SP). The paper’s purpose is to investigate the use of game theory to obtain the best agreement between the FP and SP in order to enhance the cooperation and reduce conflict. In this paper, Nash and Maxi-min solutions have been applied for the first time in a special type of petroleum agreement, called exploration and production sharing agreements (EPSA). This is conducted for a case study in Libya. The study considers nine negotiation factors (issues) in the EPSA, which are the share percent, the four “A” factors, and the four “B” factors, which are usually affected by the fluctuations of oil prices; and the study investigates their effect on the total payoff function, the net present value (NPV), and internal rate of return (IRR) for both parties. The Maxi-min solution has shown an improvement in the NPV and IRR of the SP, where NPV increased from USD 148 million to USD 195 million, and IRR from 15.65% to 17.01%. The Nash solution has shown a little more improvement than the Maxi-min solution in the NPV and IRR for the SP, where the NPV and IRR have increased from USD 148 million to USD 222 million and from 15.65% to 17.94%, respectively.

Conflicts Of Interest over the Libyan Crisis and Its Impact on the National Security of Armenia

The Arab Spring, a chain of anti-government protests and uprisings, had major implications throughout the Middle East region and it particularly affected oil-rich countries, including Libya. Libya is the largest holder of proven oil reserves in Africa (48 billion barrels). Before 2011, Libya’s oil production averaged about 1.64 million barrels per day, about 96% of the government’s revenue, which accounted for 60-65% of the country’s GDP. During the reign of Muammar Gaddafi, Libya’s oil industry was run by the state-owned National Oil Corporation (NOC), which was responsible for implementing Exploration and Production Sharing Agreements (EPSA) with international oil companies (IOCs). Among these international oil companies were ENI (Italy), Total (France), Repsol (Spain), OMV (Austria) and Equinor (Norway). Colonel Muammar Qaddafi was not considered to be a reliable partner for the above-mentioned international oil companies. He used to demand tough contract terms, frequently raised fees and taxes and made other restrictions. This policy was in stark contrast with the interests of foreign actors, especially a number of Mediterranean European states, which led to their active participation in Libyan politics with the desire to gain a greater share of oil production and increase their influence in Africa. The main struggle over Libya is for control over oil resources which are highly necessary for a number of external actors in order to ensure the dynamic development of their economies and strengthen their geopolitical position but which are also needed by regional actors to ensure their own security. From the point of view of global governance, each actor in this conflict is trying to implement its global agenda by having political control and a military presence in Libya. The main aim of this study is to analyze the conflict of interests between local, regional and international actors over the Libyan issue, which, undoubtedly, affects the policy of these forces towards our region, and to understand how these developments in a country “far from” Armenia can influence the Republic of Armenia’s national security and foreign policies.

Praktek Perjanjian Bagi Hasil Tanah Pertanian Antara Petani Pemilik Dengan Petani Penggarap Di Desa Gondosuli, Kecamatanpakuniran, Kabupaten Probolinggo

Basically, the State of Indonesia is an agrarian country, where the land can be planted with any crops, therefore the author takes the title "Practice of Agricultural Land Production Sharing Agreements Between Owner Farmers and Cultivators in Gondosuli Village, Pakuniran District, Probolinggo Regency" which is directly related to the agreement. profit sharing from agricultural land in Gebangan Village. In writing this thesis, the author raised three problems, namely: (1). What are the Procedures, Forms and Amounts of the Profit Sharing Coefficient of Agricultural Land in Gebangan Village. (2). How are the Efforts to Improve the Fate of the Farmers in relation to the Procedures, Forms and Coefficients for Sharing Agricultural Land Yields in Gebangan Village. (3). Who usually mediates when there is a problem between the Owner Farmer and the Cultivator in Gebangan Village.The purpose of this writing is
 
 Special Purpose.Specifically, the goal to be achieved is to know the practice of sharing agricultural land in Gebangan Village, Krejengan District, Probolinggo Regency, including wanting to know the Procedures, Forms and Profit Sharing Coefficients between Owner Farmers and Cultivators, so that in the future it will be known as well. the shortcomings that exist in the implementation of the agreement, so that in the end it will be possible to take steps to improve the future of the Farmers, especially Cultivators. Where the sharecroppers are always oppressed by landowners who have a lot of capital.
 General PurposeIt is to develop the level of institutional scientific knowledge, in this case Educational Institutions on Campus, including policy makers in the field of Agriculture, especially those relating to efforts to advance the future of Small Farmers in Indonesia, so that with this knowledge they can be used as a guide for updating provisions. there is, with the hope that the lives of the Farmers who are actually very useful for the Indonesian Nation are better and more advanced, so that our nation can be known again as an Agrarian Country.The method of this research is using the Juridical Empirical research method in which the legal sources used are from several valid references and through direct research in the field, where the resource persons have been directly involved in the practice of this profit-sharing agreement. The results of this study are the authors can provide a little knowledge to the people who live in Gebangan Village how the procedure for the correct agricultural land production sharing agreement for owners and cultivators, which is based on Law No. 2 of 1960, the correct agreement must be in writing, there is a witness or make an agreement in front of the local village head so that the legal basis is strong, if there is fraud from one of the parties who made the agreement then it can be brought to justice because they already have strong evidence to be brought to justice, but now there are still many farmers making agreements with just words without making a written agreement so that if there is a problem you can't do anything. Therefore, the government made a law for agricultural land production sharing agreements that occurred between the owner and the cultivator, so that the land owner could not arbitrarily treat the tenant farmers, after being given an understanding of the agreement regulated by Law Number 2 of 1960, in Gebangan Village. have already entered into a written agreement..
 
 Keyword: Constitution, Practice

Implementation of Law No. 2 of 1960 concerning the Implementation of Profit Sharing in Putat Village, Tanggulangin District, Sidoarjo Regency

In its development, the production sharing agreement was then regulated by Law Number 2 of 1960 concerning Production Sharing agreements that were born based on customary law in Indonesia. The problem in this paper is how the implementation of Law Number 2 of 1960 Concerning Land Sharing Agreements in Putat Village, Tanggulangin District, Sidoarjo Regency and What is the profit sharing concept in Law No. 2 of 1960 gave the possibility for the application of custom mechanisms in Putat Village. This thesis uses an empirical juridical approach, primary data obtained through data collection in the field which is then supplemented with literature studies for later qualitative analysis. The implementation of Law Number 2 of 1960 concerning Agricultural Land Production Sharing Agreements in Putat Village, Tanggulangin District, Sidoarjo Regency has not been fully effective. The community tends to choose to implement it verbally. The inhibiting factor for the adoption of Law Number 2 of 1960 concerning Agricultural Land Product Sharing Agreements in Putat Village, Tanggulangin Subdistrict, Sidoarjo Regency is that most of the people are not aware of the provisions of the Agricultural Product Sharing Agreement stipulated in the Law This is due to the absence of socialization from village officials and related offices, lack of insight from the community due to low levels of education, the existence of bad habits from the community that underestimate any regulations related to agriculture.

Production Sharing Agreements: Learning Lessons from Russia and Nigeria

This paper lays the foundation of what Production Sharing Agreements are, what they were intended to be, and how they have failed to meet the current requirements of the State and, in turn, have ended up exploiting the economic resources of the countries by not giving the State their rightful due. Moreover, this paper highlights the consequences of implementing the Production Sharing Agreements in two major oil producing States namely Nigeria and Russia. Subsequently, an earnest attempt has been made to bring to light the flaws of the Production Sharing Agreements accompanied with the inefficiency of the States to amend their respective laws according to their economic requirements.

Improvement of the Regulatory Framework of Regulation of Transnational Business in Azerbaijan

Though formation of the transnational business is based on common principles, this process appears in a specific form in various countries. Transnational business is different depending on the structure of the economy, the level of socio-economic development, organizational and management structure, national-ethnic characteristics, and the level of development of the state in various countries. At the same time, creating and justifying the fact that big, fast-growing and concentrated national companies are ranked in the rankings as TNB (transnational business) is one of the issues within the interest of state and economic science. Upon the Contract of the Century signed in September 1994, Azerbaijan has subsequently signed the production sharing agreements (PSAs) on “Garabakh”, “Dan ulduzu” and “Ashrafi” fields. The biggest TNBs, such as BP, Amoko, Penzoil and Unocal, have their share in oil fields from Azerbaijan. Up to 70% of all investments in the Azerbaijani economy are invested in the oil industry, about 80% of which is imposed by the foreign TNBs. This figure indicates that the TNB has a great role in the economy of Azerbaijan.
 TNB has both positive and negative impacts on the economy of Azerbaijan. As Azerbaijan’s transnational business develops, various problems also arise. For instance, the problems between the TNB and the Azerbaijan Trade Unions Department, the problems between Britis Petrolium and the Azerbaijan Government, etc. The problems they face with the host countries have begun to show itself in Azerbaijan too. Transnational business regulation is a very urgent issue over the world. The scientists have increasingly investigated the legal aspects of the TNB regulation. This article is dedicated to the actions that are being taken and important to be taken to regulate transnational business at the state level in the Republic of Azerbaijan, and the regulation methodology is proposed.

Production Sharing Agreements: Learning Lessons from Russia and Nigeria

Production Sharing Agreements: Learning Lessons from Russia and Nigeria

Optimal concession contracts for oil exploitation

This paper studies the relationship between a government and private companies for the exploitation of an oilfield by means of concession-like contracts, i.e. concessions and Production Sharing Agreements. At this aim, we develop and solve a dynamic stochastic optimization problem in a real option framework. The model takes into account crucial as well as actual features of the real world, such as: the twofold goal of governments who must mediate between social interests and revenue maximization from concessions; the incentive for the private party to ”over exploit” natural resources and uncertainty over future payoffs. The results obtained can help policy makers in pursuing the delicate task of setting the ”right” terms of concession-like contracts, meaning that policy makers can have at least a benchmark to start interacting with private parties. This phase is particularly difficult for a number of reasons, such as the need to trade contrasting interests off, high risk of corruption and the fact that negotiations are made difficult by the high level of uncertainty due to incomplete or even faulty information.

Profit Sharing Agreement of Agriculture Land Using Pusako Land in Nagari Durian River Padang Pariaman District

The agreement for profit sharing carried out in Nagari Sungai Durian, Padang Pariaman district is to implement a profit sharing agreement in verbal form based on agreement between landowners and cultivators, and trust between landowners and cultivators. based on Production Sharing Agreements rules in Indonesia, form of agreement for profit sharing must be in written form. the form of the agreement made in Nagari Sungai Durian Padang Pariaman Regency is in the form of oral because the production sharing agreement made verbally has been done hereditary and has become a habit by the people in Nagari. The right of the landowner is to accept the distribution of land yields in accordance with the agreement of the parties, while the obligation of the landowner is to surrender the land to the cultivator, and the right of the cultivator is to accept the distribution of land according to the agreement. the land he cultivated well for the landowner. Production sharing agreements made orally in Nagari Sungai, Padang Pariaman Regency are invalid because the agreement does not meet the nature of customary law, which is concrete and does not fulfill Law Number 2 of 1960 concerning production sharing agreements contained in article 3 paragraph (1) which states , the profit sharing agreement must be in written form and there must be two witnesses between the two parties

PETROLEUM PRODUCTION SHARING CONTRACTS IN THE MIDDLE EAST: APPLICATION OF ECONOMIC EVALUATION AND DECISION-MAKING MODELING

In this Study, the evolution and history of petroleum contracts is discussed with a focus on the recent major shift witnessed from Joint Operating Agreements (JOA) and Concession contracts to Production Sharing Agreements (PSA) due to the increase in the complexity of operations and funding difficulties especially from the government’s side. In addition to that, the fiscal system of PSA’s is studied as a legal instrument to allocate risk between the parties, identify ownership of assets, commitments and operational control. This study aims to figure out the application of economic evaluation for PSA’s using Discounted Cash Flow Analysis (DCF) which is considered to be powerful in evaluating the investment performance by calculating Net Present Value (NPV) of cash flows and the Internal Rate of Return (IRR). The estimated production profile submitted in the PSA of interest was exaggerated. When a Monte-Carlo Simulation was run the riskier profile (P10) was the closest to the PSA production forecast. However, in such agreements usually the mid case scenario (P50) is taken into consideration. The NPV for the first 10 years in this project is around $0.45 Billion compared to the total NPV calculated using the economic model $1.26 Billion. However, the recent instability of the oil price in the last 10 years what causes this project in particular not to meet the target so far. The IRR calculated for the 10 years period is almost the hurdle rate 10% and this is again due to the unexpected NPV due to the oil price. To reduce the uncertainty, pilot projects needs to be conducted in the first year in smaller spacing to allow for the response to be detected faster and then develop a Field Development Plan (FDP).

Default In The Agreement For The Results Of Rice

Abstract: This paper aims to find out and analyze how the default in the production sharing agreement for cultivating rice fields is viewed from the law. No. 2 of 1960 concerning Agricultural Production Sharing Agreements and the factors that influence the occurrence of default in the production sharing agreement for cultivating rice fields in terms of the Act. No. 2 of 1960 concerning Agricultural Production Sharing Agreements in Gorontalo Regency. This type of research is empirical research.The results of the study show that the default in the profit sharing agreement for cultivating rice fields is viewed from the Law. No. 2 of 1960 concerning Agricultural Production Sharing Agreements in Gorontalo Regency are still being finalized by means of customary deliberations involving the village head as a facilitator. Although there are official regulations by the government, namely UU. No. 2 of 1960 concerning Agricultural Production Sharing Agreements which have clearer arrangements, but until now the provisions of the law have not been applied as expected, it can even be said not to apply at all, it's all because of the regulations of the Act. No. 2 of 1960 concerning the Agricultural Production Sharing Agreement concerning the production sharing agreement was felt by the community to be too complicated. Whereas the factors that influence the occurrence of default in the profit sharing agreement for cultivating rice fields are reviewed from the Law. No. 2 of 1960 concerning Agricultural Production Sharing Agreements in Gorontalo Regency is influenced by internal and external factors. Keywords: Wanprestasi, Agreement, Profit Sharing

Державно-приватне партнерство та інші правові форми співпраці бізнесу, держави (територіальних громад) і закладів служби крові у сфері донорства крові та її компонентів

Державно-приватне партнерство та інші правові форми співпраці бізнесу, держави (територіальних громад) і закладів служби крові у сфері донорства крові та її компонентів

Production Sharing Agreements in Africa: Sovereignty and Relationality

Production Sharing Agreements in Africa: Sovereignty and Relationality

Угоди про розподіл продукції: проблеми правового регулювання

Today one of the leading contractual forms, which regulates the relationship in the field of mineral resources usage law, is production-sharing agreements, which is considered as an integrated contract form. However, there is no single approach  in legal science about the essence of this contractual form. Nevertheless, production- sharing agreements have several advantages, which makes further research necessary for successful development of relevant legislation.