Definition Of Sharing Agreement
For example, the KICs prefer a stabilisation agreement to amortize these early profit-sharing, to ensure that taxes and other financial arrangements already included in the PPE are not replaced by KICs that attempt to inflate government revenues. Second, it avoids any misunderstanding on the part of the data provider and the Agency receiving the data by ensuring that all issues relating to the use of the data are discussed. Before sharing the data, the provider and recipient must speak in person or over the phone to discuss issues related to the disclosure and use of the data and a collaborative understanding that will then be documented in a data sharing agreement. “One of the challenges of the geographic data community is to promote data exchange and cooperation between multiple authorities and organizations at multiple levels of public, private and non-profit organizations. The success of inter-authority exchange and cooperation is based on the adoption of guiding principles, the identification of best practices and the recognition of challenges that may include political, scientific and technological issues. (National Geospatial Advisory Committee, 2011) All the same problems are still there – the complexity of the deal and the disputes over money. Some states do not even agree on whether drilling of allocated wells is allowed by a lease. In any case, there is a lot of money at stake. If you decide to take a PSA, talk to a competent lawyer. Production sharing agreements were first used in Bolivia in the early 1950s, although their first implementation similar to today`s in Indonesia took place in the 1960s.
 Today, they are often used in the Middle East and Central Asia. Data exchange is an important way to increase the capacity of researchers, scientists and policy makers to analyse data and translate it into meaningful reports and knowledge. Data sharing discourages duplication in data collection and fosters varied thinking and cooperation, as others are able to use the data to answer questions that the original data collectors may not have considered. Also known as PSCs (Production Sharing Contracts), PPE allow the host country, sometimes referred to as the national oil company or NOC, to retain some control over oil and gas development in the country. The agreement also helps NOCs acquire the expertise they lack for hydrocarbon exploration and development within their borders. Data sharing agreements are formal contracts that define in detail what data is shared and what data is used appropriately. If the partner is a foreign company that does not accept compliance with U.S. law, the agreements must go through the USGS Office of International Programs. Data sharing agreements protect against misuse of data and encourage early communication between authorities on issues relating to data processing and use.
Production-sharing agreements can be beneficial for governments in countries that lack the expertise and/or capital to develop their resources and that foreign companies want to gain. They can be very profitable deals for the oil companies involved, but they often present a considerable risk. Data-sharing agreements should include provisions on access and dissemination. .