A seminar on international experience in overseeing the performance of PSAs
DiXi Group and ISLP held a unique online seminar for Ukraine: “Overseeing operating activities and the performance of PSAs in the extractive sector”. During two days, 5 and 6 November 2020, the attendees discussed the ways of controlling and monitoring the performance of production sharing agreements (PSAs).
The key speakers were renowned international experts: Harry Sullivan, Professor at Texas A&M School of Law, and Jorge Kim, a partner at White & Case international law firm. The participants of the zoom webinar could ask questions and receive answers during live screening of the event.
The points addressed at the seminar included accommodation of concrete (geological, fiscal and other) conditions at national level when negotiating and monitoring the performance of PSAs. The speakers explained how agreements between the government and companies work for the benefit of people and future generations. Harry Sullivan and Jorge Kim also spoke about successful examples of controlling and monitoring the implementation of agreements in other countries, pointing out in particular what “red flags” must be taken into account when monitoring contract implementation goals.
Both speakers stressed upon the importance of making information about contracts available to the public at large. Harry Sullivan said that open contracts are considered a normal practice in the world, and particularly at the companies with which he worked. Jorge Kim said that open contracts became an important element of a successful reform carried through in Mexico. They allowed to show investors and companies that the governments are reliable and predictable partners when they open information about contracts to the public.
This seminar was organized as part of USAID Energy Sector Transparency project implemented by DiXi Group, and with the support from International Senior Lawyers Project (ISLP).