REVENUE-SHARING MODEL TO REPLACE PRODUCTION CONTRACTS IN NEW PETROLEUM AGREEMENTS

Mumbai: The Ministry of Petroleum and Natural Gas is plannig at replacing the controversial production sharing contracts (PSCs) with a revenue-sharing regime or production-linked contracts.

In a bid to attract more private and foreign players into the country’s exploration business, the ministry on Thursday floated a model revenue sharing contract (MRSC) on its website seeking comments from the industry on the same till September 10. The C Rangarajan committee had earlier suggested that the government should graduate to a revenue-sharing model.

A production-linked contract is said to be more transparent than the existing PSCs, where the contractor first recovers his expenditure before sharing profit with the gov

---

Follow Arabian Post

Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.

---

Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

---