| Production Sharing Agreement |
The Production Sharing Agreement (PSA) is a form of agreement relations in the emerging market economies. It was first put into practice in 1966 in Nigeria, and disseminated later in Egypt, Syria and other countries. The PSA conditions are usually determined by national legislation. According to PSAs, the government gets a part of profit oil as a product along with tax or other payments. |
| Profit oil |
the Republic of Azerbaijan’s share of proceeds from sale of crude oil under the Production Sharing Agreements |
| Bonus payments |
the fees payable by foreign oil companies to State Oil Company of Azerbaijan Republic or other relevant authorities of the Republic of Azerbaijan in connection with signing oil contract and its implementation. |
| Acreage fees |
payable to the State Oil Company of the Republic of Azerbaijan by the foreign investors for use of the contract areas in connection with the development of hydrocarbon resources |
| Rentals |
paid to the Oil Fund by foreign companies for state property used on a contractual basis. |
| Transit fees |
the charges for use of the Baku-Supsa export oil pipeline for transporting oil across the territory of the Republic of Azerbaijan. |
| The proceeds from assets delivered by investors |
fixed assets, movable property and other assets submitted to the Oil Fund, under the PSAs, export pipeline contracts and related covenants. |
| Royalty |
An amount of money paid to the owner of a resource-bearing property by a mining company in exchange for the right to extract and sell the resource. This compensation is usually proportional to the quality and quantity of the resource extracted. |
