A Comprehensive Overview and Classification of Upstream Oil and Gas Contracts

This article aims to analyze and characterize the primary legal instruments used in the oil industry, with a particular focus on the contractual models that govern hydrocarbon exploration and production operations. It offers a classification of Joint Ventures, a cooperative mechanism that facilitates the shared allocation of risks and resources among the involved parties. The article also discusses License Agreements and Exploration Rights, which grant specific exploration and production rights, thereby regulating the relationship between the state and oil companies. The study proceeds with an analysis of Concession Agreements, highlighting their unilateral nature and the transfer of exploration rights under conditions specified by the grantor. Additionally, the article examines Production Sharing Contracts (PSCs), emphasizing their role in dividing production between the state and the contracted companies, with particular attention to mechanisms for maintaining economic balance and mitigating risks. The exploration of energy resources, particularly in developing countries, is often governed by complex contracts that are essential in structuring operations and securing financing. This study focuses on categorizing and describing the main contractual formats applicable to the upstream sector, addressing their legal and operational characteristics. By providing a deeper understanding of these contractual structures, the article contributes to the ongoing debate regarding the suitability of different contractual models in various geopolitical and economic contexts.