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[Music] so now were at profit sharing so since the international oil company up until this point has fronted all the costs and expenses throughout the entire three phases of the production sharing agreement you would expect that the lions share of the greatest share of the profit oil would go to the international oil company but in almost every case the opposite is actually true a profit now profit oil is going to be the amount of oil of course available for distribution after all the costs and expenses of production have been meted out and recouped by the investors and most and in most instances the profit oil is going to be distributed based on tranches of production typically with the host government receiving the greater allocation of production and that greater percentage typically increases as the production rates rise so let so lets take a look at an example of a proposed profit oil split between the government of Tanzania is model production sharing contract and this is tip
