Contract Structure of Production Sharing Agreement by International Oil Company in Exploration of Petroleum Resources in Developing Countries

Presently, there is little focus on the contractual agreement, particularly production sharing agreement by International Oil Companies in exploration of petroleum resources developing countries. The primary objective this paper to critically explore contract structure production-sharing agreements and development Content analysis was used as methodology study after examining several literatures. findings indicate that (PSA) between National (NOC) (IOC) plays a significant role cost risk oil. In addition, it noted joint committee NOC IOC paramount monitoring operations PSA IOC. Hence, from gross oil production, gets its share profit while income tax. As an instrument gas sector, needs further entrenchment avoid likely issues can emanate two parties face current developments.