Risk Sharing Contracts
First implemented in Malaysia, the risk sharing contracts (RSC) departs from the production-sharing contract (PSC) first introduced in 1976 and most recently revised last year as the enhanced oil recovery (EOR) PSC which ramps up recovery rate from 26% to 40%. As a performance-based agreement, it is developed in Malaysia for the Malaysian people and private partners to both benefit from successfully and viably monetizing these marginal fields. At the Center for Energy Sustainability and Economics' Production Optimisation Week Asia Forum in Malaysia on 27 July 2011, Finance Deputy Minister YB. Sen. Dato' Ir. Donald Lim Siang Chai expounded that the trail-blazing RSC calls for optimal delivery of production targets and allows for knowledge transfer from joint ventures between foreign and local players in the development of Malaysia’s 106 marginal fields, which cumulatively contain 580 million barrels of oil equivalent (BOE) in today’s high-demand, low-resource energy market.
Read more about this topic: Production Sharing Agreement
Famous quotes containing the words risk, sharing and/or contracts:
“Risk! Risk anything! Care no more for the opinion of others, for those voices. Do the hardest thing on earth for you. Act for yourself. Face the truth.”
—Katherine Mansfield (1888–1923)
“By sharing the information and observations with the caregiver, you have a chance to see your child through another pair of eyes. Because she has some distance and objectivity, a caregiver often sees things that a parent’s total involvement with her child doesn’t allow.”
—Amy Laura Dombro (20th century)
“If love closes, the self contracts and hardens: the mind having nothing else to occupy its attention and give it that change and renewal it requires, busies itself more and more with self-feeling, which takes on narrow and disgusting forms, like avarice, arrogance and fatuity.”
—Charles Horton Cooley (1864–1929)