Oil Exploration And International Cooperation In Sharing Model

In the international oil and gas exploration and development projects, the economic cooperation relationship established between the contractor and the host country, contract model, to a great extent, determine the effect of the operation of the project. Presently, there are mainly four contract models internationally, namely concession, PSC, service and buy back contracts. Among them, PSC is the primary one, adopted by the majority of host countries. The production sharing model of the contract is the core part of the sharing of benefits among the parties[1], mostly concern the parties. In this article, the instances of petroleum exploration international cooperation PSC contract were taken to be analyzed and was discovered that the contract is not flexible on varying oil prices. When the price is high above the "decision price", the foreign contractor is going to gain huge amount of profit, causing harm to the host country and drainage of resources.Mainly using IRR analysis and graphical analysis of technical economics, the article take H GO p etroleum international c ooperation o f C hina p reject as example, analyzed the current using petroleum exploration international cooperation PSC contract model. The law as well as the reasons behind it of the effect caused by the oil price on IRR were found out. The factors include cost oil recovery ratio, production sharing ratio. Through the analysis on the law investment and production cost of the international exploration petroleum project, the factors controlling the foreign contractor were selected, new PSC model were constructed and verified by actual project data, to test the adaptation of the new model to oil price and the extent of the protection to the host country.