The recovery of the government`s share in the financial or technical assistance agreement begins after the financial or technical assistance contractor has fully recovered its expenses before operations, exploration and development expenses, including. 46 It was proposed that, despite the management control provisions contained in its oil agreements on oil activities related to oil distribution, pertamina, the much-loved state oil company Pertamina has virtually no real control over the management of foreign operations. Robert Fabrtkant, Oil, Discovery and Technical Change in Southeast Asia – Legal Aspects of Production Sharing Contracts in The Indonesian Petroleum Industry at 21 ff. (Singapore: Institute of Southeast Asian Studies, 1973. Field Report Ser. 3.) 21 The Ghana Commission of Enquiry into Concessions concluded in 1961 that “all mineral and forestry licences should be legally required to calculate a percentage of the sale price. . . . Ghana, report . . 14, 10. Under the MPSA, the government, as the owner of the ores, participates in the production of the contractor, either in kind or in value.
Other types of contracts are the co-production agreement, under which the government provides inputs other than mineral resources, and the joint venture agreement under which the government and the contractor organize a joint venture, with both parties having shares in the unit. 60 Hunter, Oil Developments, 7 Bull, of Indonesian Economic Studies, March 1971, circa 98. A thoughtful analysis of post-Sukarno contracts regarding production allocation is available under R. Fabwkant`s Note 46. The authorisation may be subject to an agreement to share mineral production, a joint enterprise agreement, a co-production agreement or a financial or technical assistance agreement on the authorization area granted if the authorization meets the conditions and conditions of such an agreement, provided that the exploration period covered by the exploration permit is included in the exploration period of the mineral contract or the financial or technical assistance agreement. However, a mineral agreement or a contracting financial technical assistance has the right to obtain and remove sand and gravel and other unconsolidated materials, without authorization, in the area covered by the mining agreement, for exclusive use in the mining industry: provided that the monthly reports on the materials obtained are submitted to the Office of the Mining Regions concerned. – In addition, this right is co-seeded with the expiry of the agreement. In the case of a foreign contractor, it reduces its capital to 40% (40%) partnership, association or co-operative.
Once this requirement has been fulfilled by the contractor, the secretary approves the transformation and implements the mineral-sharing agreement. 65 In mid-1973, Ecuador signed a new agreement with the Texas-Gulf Consortium, which provides for Ecuador`s right to acquire up to 51% of the company`s total production for its own merchanidising. See New Oil Contract Signed by Ecuador and Consortium, N.Y. Times, August 8, 1973, 47. Despite the many dramatic developments in natural resource production in some parts of the Third World over the past decade, mineral production remains assured in most developing countries through contractual agreements between foreign firms and host country governments. The nationalization of the copper industry in Chile and bauxite in Guyana, the spectacular successes of OPEC and the complete or planned nationalization of oil activities in a number of countries have been the focus of concern since 1969.