Production Sharing Agreements the reason for the demonization of Putin? Why is Putin so popular in Russia? Ive seen plenty of documentaries detailing the corruption in Russia, but this is the first one Ive seen which tells Russias side of the story. It starts with something called PSAs (Production Sharing Agreements) https://youtube/watch?v=qCU4C6ajgBI Apparently most of PSAs were written in the 1990s with the help of American NGOs. The majors like Shell got the deal of the century -- i.e., they were ripping off the Russian government. When there are hundred of billions of $ at stake, you can be sure the losers arent going to be too happy. As an example, read this report about the infamous Sakhalin PSA bothends.info/mfi/dos3-SakhalinPSA.pdf by energy economist Ian Routledge. The royalty payable to the Russian government on volumes of oil extracted is low by international standards, at just 6%. Among the countries which use PSAs and where the field size and production levels are comparable to those in Sakhalin, royalty rates generally fall within the range 10% - 20%. Or read this report danieljohnston/pdf/sakhalin_lng.pdf by the [petroleum] industry consultant Daniel Johnston, who wrote that: Sakhalin II has been described as “an agreement so advantageous it becomes part of corporate lore and is analyzed in business school textbooks for years to come.” and that it transferred most of the risks of both construction overspend and change in the oil/gas price to the Russian government. Part 2: https://youtube/watch?v=LRSVNPQKDkM
Posted on: Sun, 31 Aug 2014 04:03:36 +0000
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