A royalties and PSAs primer

The topic of royalties and Production Sharing Agreements (PSAs) is in essence a discussion about petroleum fiscal systems. Both have featured highly in the Romanian public space lately in view of the possibility, starting with 2014, to review the level of oil and gas royalties (currently frozen at 2004 levels). The article discusses some theoretical and historical aspects in trying to build a wider analytical framework in order to examine more in depth Romania’s case in a future article. In pursuit of this objective, the text looks into a few specificities of mineral resource taxation to illustrate the great variety of legal and fiscal regimes available worldwide for the development of oil and gas resources.