ASSESSMENT OF THE OIL AND GAS PROCEEDS SHARING MODELS USED IN MALAWI BETWEEN INVESTORS AND GOVERNMENT
Abstract
Production sharing contract (PSC) is an arrangement used in the upstream sector for the exploration and development of petroleum resources. Several oil producing countries, particularly the developing ones have adopted it as a contract for the exploration and development of their oil and gas resources. Malawi has adopted it for the exploration and development of the offshore and inland basin.
This paper examined the concept and general basic features of PSC. It went further to look at the PSC arrangements in Malawi and observed that there are various models of PSC executed in Malawi and identified the significant differences in each one. In addition, it reviewed the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999 which gave legislative backing to the fiscal terms granted by the Government to certain PSC models.
It evaluated the various models of PSC executed in Malawi and ascertained the shortcomings in them.
Research summary
Production sharing contract (PSC) is an arrangement used in the upstream sector for the exploration and development of petroleum resources. Several oil producing countries, particularly the developing ones have adopted it as a contract for the exploration and development of their oil and gas resources. It went further to look at the PSC arrangements in Malawi and observed that there are various models of PSC executed in Malawi and identified the significant differences in each one. In addition, it reviewed the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999 which gave legislative backing to the fiscal terms granted by the Government to certain PSC models.