Russia`s production sharing law -- a foundation for progress
- Wavetech Geophysical Inc., Denver, CO (United States)
Landmark legislation on production sharing agreements (PSAs) passed the Federation Council of the Russian Federation on Dec. 19, 1995, and was signed by President Boris Yeltsin on Dec. 30. This long anticipated body of law will provide the framework for completing several of the PSAs that are currently under final negotiations and begin the process of bringing new areas up for tender. While some in the industry have expressed concerns that the new law does not supply all of the necessary protections and procedures needed to attract investment, it is clear that passage of this law provides the basis for energy companies to cautiously proceed with projects that have been awaiting a legal basis. The new law, in combination with the existing Law of The Russian Federation On The Subsoil (``Underground Code``) provides for additional incentives for foreign investors to begin developing Russian oil and gas reserves. This paper reviews the history of PSA, procedural issues, and the actual protections and incentives of the PSAs.
- OSTI ID:
- 186908
- Journal Information:
- Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 5 Vol. 94; ISSN OIGJAV; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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