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

ogMumbai: 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