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EITI glossary

This glossary is compiled by the EITI International Secretariat and is only provided as a resource.

Production sharing contract

A petroleum production arrangement in which the contractor bears all costs of exploration and production without such costs being reimbursable if no find is made in the contract area and in which the government and contractor are both paid in the resource produced.

Project tax

A tax applied to a specific project.

Profit

The net excess of income over expenses, according to the appropriate accounting rules. Profit may be defined either before and/or after deducting applicable taxes owed.

Profit oil

 

A quantity of crude oil/gas which remains to be split between the government and contractor after the recovery of costs, through cost oil/gas, and payment of royalty and other taxes (if applicable) under a production sharing contract.

PSA

Short for production sharing agreement. A petroleum production arrangement in which the contractor bears all costs of exploration and production without such costs being reimbursable if no find is made in the contract area and in which the government and contractor are both paid in the resource produced.