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Contract or co-operation? Background to the prevailing investment environment for oil projects in Russia

Paper number

Larry George

January 2004

A paper given to a conference organised by the Centre of Construction Law at
King's College London and held in London on 11th September 2003.

The author
explains how, when working in ussia, co-operation - with contractual counterparties,
regulatory authorities, infrastruction and transport providers, suppliers
and advisers - is essential to ensure that contractual obligations can
be met.

POJECTS - Summary
- The issues - THE PODUCTION SHAING AGEEMENT - The concept of product
sharing - Conventional product sharing - Direct sharing - The content of PSAs
- Designation of subsoil plots for development on the basis of PSA - Tax issues
under the grandfather PSAs - Tax issues under the PSA chapter of tax code -
Future of PSA - THE SUBSOIL LAW EGIME - The regulatory framework - The form
and content of subsoil use licences - Issues concerning the SUL regime - Transition
from an exploration licence to an exploration and production licence or to a
PSA - Mechanism for compensation of the investments costs - OTHE POSSIBLE STUCTUES
THE IMPACT ON CONTACTOS - The need for change to the subsoil law - Proposals
for amendment of subsoil law - Draft subsoil code - Draft concessions law -
USSIAN CONTENT ULES - The rules in general - ussian content in the current
2 Sakhalin PSA projects - Structuring issues - ussian content and the SUL regime
- ussian content and the WTO and ECT - ISSUES AISING IN SAKHALIIN IN A USSIAN
CONTEXT- Legal landscape in Sakhalin - Former key legislation - Federal and
state laws - Special employment laws - Environmental protection rules - LICENSING
AND PEMITTING - Licences, approvals, permitting - Summary and conclusion -
Annex 1 Sakhalin Island - Annex 2 Sakhalin Projects: location - Annex 3 Sakhalin:
Projects Notes.

The author: Larry George is a partner of Lovellls, now
working in the London office, having previously worked in Lovells Moscow

Text and appendices 37 pages.

PDF file size: 256k