ERHC Energy Inc (ERHE)

[kingpindg]

Hello, Krom.

Production Sharing Contracts are the agreements between the governments and the contracting parties that detail how both exploration and procuction will be conducted on a block. Typically they are broken into phases, e.g. Phase I is seismic, Phase II is exploratory drilling and Phase III is production if Phase II is successful. I'm not aware of any host country that does separate agreements for exploration vs. production.

In any event, no drilling would be allowed to take place without the consent of the government.


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