Production sharing agreement under Turkish and Turkmenistan Law

Petroleum investments are crucial in international relations today while oil and gas are important. Studies show that there have been oil reserves in a few countries? border. Countries with a host of petroleum reserves, willing to operate by its own sources primarily. However, it is not always possible due to lack of know-how, the source of finance and technology. For this reason, countries with petroleum reserves give the right of petroleum exploration and production to investors in practical foreign investors using various models. Soon on initiation of the petroleum produced in the industrial perspective, a concession agreement in the Middle Eastern Countries began to be used as a model of investment. However, in response to foreign petroleum companies to have control of all petroleum reserves developed a production sharing agreement. Unlike production sharing agreement, in the concession contract, until the petroleum is produced the host State has the property of the petroleum. After producing, part of petroleum produced are divided into investor's share.According to current studies, Licensing model is used as a model of investment in Turkey with very little petroleum reserves. According to the Turkish Constitution Law, petroleum is under provision and savings of the State, hence, investors to carry out petroleum exploration and production activities must get a permit from the host State. Model of this permit is determined by the Petroleum Law. Model is determined by the Turkish Petroleum Law too, the production sharing agreement is impossible to implement in Turkey unless the law is edited. However, today the Turkish petroleum companies commonly use the production sharing agreement for overseas investments.Turkmenistan has huge reserves of oil and natural gas, production sharing contract is emerging as one of the investment model. In Turkmenistan, with a production sharing agreement, the state share and the tax conditional concession agreement, a joint venture agreement and a risk service contract can be used as a model of investment. The relevant regulatory is in Turkmen Petroleum Law. However, the most widely used model Turkmenistan is the production sharing contract.