Chapter 7 Malaysian Production Sharing Contract (PSC)

Which act gave PETRONAS ownership and rights over Malaysia’s petroleum resources?

• Petroleum Development Act 1974

• National Petroleum Policy 1975

• Gas Supply Act 1993

• Oil Mining Ordinance 1958

Which company signed the first PSC with Malaysia in 1976?

• ExxonMobil

• Esso

• Shell

• Petronas Carigali

What is the main difference between a concession system and a PSC?

• Concessions involve shared risks, PSC puts all risks on government

• Concessions give rights to companies, PSC keeps state ownership with shared production

• PSC gives full control to foreign companies

• Both systems are identical

Which contract type requires the IOC to bear all exploration costs in exchange for a fixed fee?

• Concession Agreement

• Production Sharing Contract

• Risk Service Contract

• Revenue-over-Cost Contract

What is the purpose of Revenue-Over-Cost (R/C) PSCs?

• To encourage shallow water exploration (<200 m)

• To expand coal production

• To regulate downstream oil refining

• To reduce exploration risks