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How to Share Concession Agreement Template

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A concession agreement refers to a negotiated contract that grants a company the right to operate under specific conditions. This term is used in two contexts: first, as a contract between a foreign company and a government, allowing the company to conduct business in that country, often involving incentives like lower taxes or relaxed regulations. Second, it refers to an agreement that gives a concessionaire exclusive rights to operate in a certain area or venue in exchange for negotiated terms. Governments may offer incentives to attract foreign companies, while companies may need to make concessions if government support is limited.

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What is concession agreement in oil and gas?

1. n. [Oil and Gas Business] A grant extended by a government to permit a company to explore for and produce oil, gas or mineral resources within a strictly defined geographic area, typically beneath government-owned lands or lands in which the government owns the rights to produce oil, gas or minerals.

What are examples of concession agreement?

For example, a concession agreement exists between the governments of France and the U.K. and two private companies regarding the Channel Tunnel. The British Channel Tunnel Group Limited and the French France-Manche S.A. operate the Channel Tunnel, often referred to as the Chunnel under this agreement.

What are examples of concession agreements?

For example, a concession agreement exists between the governments of France and the U.K. and two private companies regarding the Channel Tunnel. The British Channel Tunnel Group Limited and the French France-Manche S.A. operate the Channel Tunnel, often referred to as the Chunnel under this agreement.

What are the benefits of concession agreements?

The major advantage of a concession is that it allows certain public assets, for which private ownership is economically inefficient and politically not possible, to be maintained and operated efficiently by private players.

What is model concession agreement?

It helps considerably in streamlining the administrative process by reducing the time in preparing such documents and getting them cleared from the concerned government agencies. Model concession/contract agreements or MCAs also reduce the cost of legal fees in preparing contract documents.

What are the different types of agreement in oil and gas?

If we generally talk about the major broad categories of agreements that are entered between the parties in the Oil and Gas sector, they are: Concession agreements, Production Sharing Agreements (PSA), Joint venture Agreements and Service Agreements.

How does a concession agreement work?

Under a concession agreement, the government grants a private entitythe concessionairethe exclusive right to build an asset and to operate and maintain it for the agreed term of the concession.

What is a concession arrangement?

A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop, operate and maintain an infrastructure asset such as a road, bridge, tunnel, airport, energy distribution network, prison or hospital.

What is meant by concession agreement?

Key Takeaways. A concession agreement is a contract that gives a company the right to operate a specific business within a governments jurisdiction or on another firms property, subject to particular terms.

What are the disadvantages of concession?

Cons: Highly complex to implement and administer. May have underlying fiscal costs to the government. Negotiation between parties and finally making a project deal may require long time.

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