Oil and Gas Paper Essay Example | Topics and Well Written Essays - 2000 words

Oil and Gas Paper - Essay Example This mode has both advantages and disadvantages, so apt clauses have to be incorporated into the agreement, to avoid any risks. After that, Atlantic Oil has to adopt feasible and effective funding options, and also have to carry out their operations without any negative impact on the environment. Production Sharing Agreements (PSA) – Advantages, disadvantages and Clauses A change to the dominant form of contract has occurred in the oil industry, with the previously followed concession agreement giving way to the production sharing agreement.2 Production sharing agreements (PSA) are a type of contract which is signed between the government, in this case Polenskya’s government, and the oil exploration company or Atlantic Oil, regarding the extraction process and the how the extracted oil and its profits can be shared. That is, as oil and gas deposits are usually owned by the country concerned, it is common for the country to enter into a production sharing agreement with an oil company, so the specific company can do the financial investment for the extraction process, extract the oil or gas, sell it and through it recover their initial investment, and then share the production as well as the profits with the government.3 With this agreement divided into two stages, recovery period and sharing period, the produced oil is also categorized into two categories, Cost Oil and Profit Oil. The Cost oil includes the produced oil or gas, which will be sold by the company themselves to recover their investments, while with the profit oil only the government and the contractor will share the profits.4 This PSA has both advantages and at the same time inherent disadvantages. Advantages One of the main advantages that will be garnered by Atlantic oil if they enter into a production agreement with Polenskya is the high degree of fiscal stability. That is, the tax structure which is in action during the signing of the PSA, as well as the certain tax concessions gi ven to the Atlantic Oil by the government will be ‘future proof’. Thus, any overall tax changes brought on by the government in future will have no impact on the terms of the PSA, and thereby will not negatively impact the finances of Atlantic Oil. Although, certain corporate taxes are exempt from this cover, the bottom line is PSA guarantees Atlantic Oil sizable financial stability, whatever be the changes in the external environment. â€Å"The attraction of the production sharing system is that it provides the investor with a relatively stable regime in a complex and rapidly changing legal and political environment.†5 The other advantage of PSA is, it will be politically and socially more acceptable to Polenskya and in turn to Atlantic Oil as well. In countries like Polenskya, where there will be skepticism and also resistance to foreign companies, due to the mindset among the people that foreign companies will exploit the resources for their own benefits, with out giving anything back to the local population.6 However, with PSA making the government the ‘co-owner’ of the operations, it will assure the people maximally and they will welcome and support Atlantic Oil completely without any apprehension of economic exploitation. Disadvantages At the same time, there are some disadvantages of this type of contract and the key one among them is the possibility of project or extraction

Business Model of On-Line Retaining Essay Example | Topics and Well Written Essays - 2250 words

Business Model of On-Line Retaining - Essay Example On-Line retailing business runs over the Internet through well designed user friendly portals, whereby the products & services are displayed through electronic means (like photographs, images, videos, etc.) and payments collected either electronically or using a system that accepts remote checks, wire transfers or on-delivery cash. On-line Retailing is different from the traditional business primarily from the perspective of product display, business expenses, business location, communication & customer engagement, and technology. Supply chain management of both businesses are similar with the only exception that on-line businesses have to manage their deliveries remotely and in larger geographies (even at global levels) whereas the traditional retailers may have to carry out lesser remote deliveries within a fixed locality. We hereby analyze the on-line retailing process deployed by eBay through their portal named (www.ebay.com). The process of on-line shopping starts from a search engine - either global search engines like Google, Yahoo or the search engine built within the eBay portal. Products advertised on eBay can be approached through both the mechanisms. Once the buyer reaches the on-line display of the product of c... Once the buyer reaches the on-line display of the product of choice (two or three dimensional graphics or video along with specifications, pricing details, terms & conditions, etc), he/she can evaluate the product using published specifications & pictures/videos and then open a shopping cart where the products selected for purchase can be collected. After collecting all products, the buyer can proceed for payments where the terms on eBay are electronic (credit cards or debit cards. Given that eBay is a global on-line shopping portal, they do not offer localized choices of payments. The soft products can be downloaded online and the hard products are transferred to the customer from the warehouse that is closest to the physical address of the Customer. eBay also offers international delivery of products through world class renowned courier services which is charged to the buyer at the time of purchase. [Chatpar and Venugopalan, 2007] Key Traits and Bases of success of the marketing strategy of Online Retailers The key factors of success of Online Retail businesses are the following: (a) Excellent User Friendly Portal system: eBay is one of the most user friendly on-line shopping portal of the world. The buyers are able to quickly search and select products of their choice through well deigned categorization & guidance systems and make secured & reliable payment. (www.ebay.com). (b) High Quality Customer Services: To serve their customers, eBay has on-line chat & message boards, e-mail ids through which trained customer support specialists respond quickly to address queries or grievances. Extra information on every product is available through local product catalogues whereby the products in stock exactly match the