Cost oil

{
  "id": "MLC-T-OAG-000874",
  "term": "Cost oil",
  "field": "Oil and gas",
  "definition": "The part of production in a production sharing contract that the contractor takes first to recover its exploration, development and operating costs. In each period it is the lesser of the costs actually recoverable and a ceiling set as a percentage of total output. What remains is profit oil, which the government and contractor split under the agreed shares, while any unrecovered costs carry forward.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/cost-oil/"
}