The latest book by Peter Roberts, Drafting and Negotiating Petroleum Royalty Agreements, is a timely examination of one of the key project contracts that underpin such exploration and production… Points made throughout the book are often accompanied by drafting or worked economic examples. While the author notes these ‘represent the counsel of perfection’, they do provide an extremely useful reference to better illustrate the points being made… Overall, this book is likely to be a valuable resource for legal practitioners, energy industry professionals and students who are interested in learning or refreshing their knowledge of petroleum royalty agreements.
Petroleum royalty agreements are well understood and widely used in several jurisdictions worldwide, and are increasingly being used in many new jurisdictions as a tool for petroleum project development, financing and divestment. However, they are not always drafted with the necessary rigour, and deficiencies are commonplace.
This Special Report provides an overview of the key issues relating to petroleum royalty agreements (with drafting examples), including:
- key forms of royalty agreement (including gross overriding royalties, net profit interests, cash and in-kind royalties);
- an explanation of the economic underpinning of royalty agreements;
- the content and effect of key royalty agreement provisions; and
- additional provisions which can be found in royalty agreements.
It will be an invaluable guide to legal, commercial and financial professionals engaged in petroleum project financing, development and divestment.