The National Agency for the Valorization of Hydrocarbon Resources "ALNAFT"

Hydrocarbon contracts

Signed by the contracting parties in order to define the methods of carrying out exploration and / or exploitation activities within the perimeter, as well as the responsibilities, rights and obligations of each of the parties:

 

Participation Contract:

- Object: The object of the participation contract is to organize between the contracting parties the procedures for exercising, within the perimeter, exploration activities and, in the event of the discovery of one or more commercially exploitable deposits, the exploitation activities.

-Financing:The financing of upstream operations is provided by the contracting parties up to their participation rates, with a minimum rate of participation for the national oil company of 51%.

- Property of the hydrocarbons: The extracted hydrocarbons become, at the point of measurement, the property of the contracting parties

- Property of installations: The installations carried out within the framework of the execution of the participation contract are the property of the contracting parties

- Taxation: Taxation is paid by the contracting parties in proportion to their participation rates, with the exception of income tax which will be paid by each person constituting the contracting parties.

- Operations agreement: document annexed to the participation agreement, it specifies for the conduct of upstream operations, the missions of the upstream operator acting in the name , on behalf and under the responsibility of the contracting parties.

 

Production sharing contract:

- Object: the object of the production sharing contract is to organize, between the contracting parties, the methods of exercising, within the perimeter, exploration activities, and to define the production sharing mechanisms, intended for reimbursement of oil costs and the remuneration of the foreign co-contractor.

- Financing:  the foreign co-contractor finances the upstream operations. However, the national oil company has the option to participate in the financing.

The foreign co-contractor is any person having the status of contracting party, other than the national oil company,

- Property of hydrocarbons: the extracted hydrocarbons become, at the point of measurement, the property of the national company, the foreign co-contractor has, at the point of delivery, his share of production for the reimbursement of cost oil and its net gain

- Property of installations: The installations carried out within the framework of the execution of the production sharing contract are the property of the national oil company

- Taxation: Taxation is paid by the national oil company, except for the tax on remuneration which is payable by the foreign co-contractor. However, the national company pays this tax in the name and on behalf of the foreign co-contractor the amount of this tax

- Operations agreement: document annexed to the production sharing agreement, it specifies for the conduct of upstream operations, the missions of the upstream operator acting in the name , on behalf and under the responsibility of the contracting parties

 

Risk Services contract:

- Object: the object of the risk services contract is to organize between the contracting parties the terms of exercise, within the perimeter, the operating activities, and, where applicable, of exploration, and to define the mechanisms of revenue sharing, intended for the reimbursement of oil costs and the remuneration of the foreign co-contractor

- Financing: the foreign co-contractor provides financing for upstream operations; however the national oil company has the option to participate in the financing .

- Property of hydrocarbons: the extracted hydrocarbons, at the point of measurement, become the property of the national company. The foreign co-contractor receives cash income for the reimbursement of cost oil and his remuneration.

- Property of installations: the installations carried out within the framework of the execution of the risk services contract are the property of the national oil company.

- Taxation: Taxation is paid by the national oil company, except for the tax on remuneration which is payable by the foreign co-contractor. However, the national oil company pays it in the name and on behalf of the foreign co-contractor the amount of this tax.

- Operation agreement: The operation agreement is optional in this contract. If the responsibility for the conducting of upstream operations and the missions of the upstream operator are not defined in the risk services contract, the operation agreement will be appended to said contract in order to determine it .