Although Production Sharing Contracts often follow the general base principles, it is essential to understand how to define the revenue, identify the fiscal/tax depreciation, calculate taxes and analyse the cash flow to ensure economic profitability and highest returns.
In times of instability and uncertainty governments as well as oil companies are carefully reviewing their next steps and, most importantly, their contractual arrangements for existing and future projects. Sharing risks and maximising profits requires you to not only understand but also negotiate the respective clauses and their impact.
The number of EPC contracts may have dropped significantly in Q1 2015 but the value of the awarded deals remains substantial. With competition increasing it is essential to ensure that EPC projects are executed within budget and on schedule.