PSAs are a type of contract which is concluded between a State or National Oil & Gas Company (for the purpose of this report – both are considered the “State”) and a private company – usually called “contractor”.
PSAs are widely used across the world, usually in countries whereby investors require additional levels of legal security due to limited recourse in local jurisdictions, or whereby the hosting countries are seeking large investments and thus offer necessary improved legal framework, as well as increased size to make the prospects more attractive to the investor.