ABSTRACT
The joint venture has been used by Indonesia and Malaysia in combination with a production-sharing contract, and a joint venture with majority government equity ownership has been used by Angola, Bahrain, and Cameroon. The Colombia contracts of association are perhaps the best modern example of the joint-venture agreement in petroleum. However, the Colombian concession contracts differ from most modern concession contracts in that all oil produced must be sold to the government at a price determined by the government, which bears little relationship to the current world price. The Papua New Guinea (PNG) petroleum agreement is an example of the modern concession agreement. The PNG model agreement is of special interest because it employs the resource rent tax as a form of progressive income tax. Interest is deductible for calculating taxable income if the external loan is registered and approved by the exchange control authorities.
