Oil and Gas Exploration and Production Contracts Essay

Oil and Gas Exploration and Production Contracts - Essay Example The origin of concession was from the E&P of the petroleum in the developing petroleum mining countries by the international oil companies. It dates back to the late 19th Century when most of oil producing countries were under the European power political control. The Indonesian GOE and a foreign oil company were the first to form a Production sharing company in 1966 that was under the foreign company’s people’s empathy together with the countries aiming to control the natural resources within Indonesia. In between 1958 and 1961, Service contract was introduced for the first time in Argentina by the Argentinian government. The service contract introduced was in three types that included financial exploration, drilling, and development in the aim of achieving the most advanced technology. A third type of contract that is the joint venture was for the first time introduced in the Italian GOE, Iranian GOE, and Egypt. It was meant to participate in the Managerial decision. The ownership of petroleum is granted by the concession agreement.