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Date Posted: 2009-08-18 13:08:43


Will a PSA operator be allowed to produce diesel fuel and sell to foreign armed forces (like NATO or US forces) operating in country?

Answer

Date Answered: 2009-08-18 13:08:33


The Contractor is entitled to dispose of its share of hydrocarbons, as specified in:

Hydrocarbons Law Article 3 (2), extract: "The Contractor may take, sell or export his share of produced Hydrocarbons, in accordance with the conditions laid down in the respective Contract."

Model EPSC article 2.1, extract: "The Contractor shall acquire a share of extracted Hydrocarbons as set out herein, and shall, except as provided in Paragraphs 12.7 and 12.9, have the right, during the term of this Contract, to freely take, sell and export its share of the Hydrocarbons produced hereunder."

There is no restriction on the sale of diesel fuel to foreign armed forces operating in Afghanistan.