Evolution of Malaysian PSC
            Prior to 1976, oil companies in Malaysia operated under a concession system. PETRONAS was formed as a result of the Petroleum Development Act (PDA) in 1974, and took over as the sole custodian of all petroleum resources in Malaysia. Production Sharing Contract (PSC) terms was introduced in 1976. In 1985, new PSC Terms were introduced primarily to attract more foreign investments to explore for oil and gas resources. The 1985 PSC terms offered a better profit split for the contractor.
            With the push towards deepwater exploration, PETRONAS introduced a Deepwater PSC in 1992 specifically designed to accelerate exploration in deeper water ( beyond 200 m).
            In 1997, a more liberal petroleum arrangement was introduced. The 1997 R/C PSC is a self-adjusting formula of cumulative revenue/cumulative cost designed to provide incentives to develop smaller oil and gas discoveries.
  Evolution of PSC in line with Changing Environment
  PSC Duration (In Years)
  Comparison of Contractor's Take
  Main features of R/C PSC
  Revenue Over Cost (ROC) PSC Committees

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Last Update: 8 August 2002