Production service contract

{
  "id": "MLC-T-OAG-002958",
  "term": "Production service contract",
  "field": "Oil and gas",
  "definition": "An upstream agreement in which a contractor develops or operates fields for a state or national oil company and is paid a fee, often per barrel produced above an agreed baseline, plus recovery of approved costs. The host keeps title to all the oil, so the contractor receives no share of the production itself. This separates it from a production sharing contract, where the contractor takes part of the output as cost oil and profit oil.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/production-service-contract/"
}