Pakistan Production Sharing Agreement: Offshore Fiscal System
Article from: OGEL 1 (2005), in Production Sharing Contracts
Introduction
At present, two distinct regimes govern upstream Exploration and Production (E&P) operations in Pakistan. Onshore E&P operations are governed under a concessionary regime (commonly known as royalty/tax system), whereas Offshore E&P operations are governed under the Production Sharing mechanism. Owing to the high risks involved in the offshore E&P operations and non-discovery of any commercial petroleum from the offshore areas of Pakistan (till November 2004), the offshore E&P operations have recently been accorded additional incentives to induce investment in offshore E&P ...