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• Six contract areas

• Each contract area entitled to a 15 year production period after notice of discovery

and can be extended up to 10 years

• Full operational management

• PSA supervised by ministry of ecology

• Government “royalty” of 12.75% of production until all historic costs (capital and

operating) are recovered

• Following recovery of all historic costs – Government “royalty” of 51% of

production less all current capital and operating costs (expected in 2018 for


• Regime applied to all products – gold settled in gold bullion

Production sharing agreement

Production sharing agreement (“PSA”) with the Government of Azerbaijan –

a revenue sharing contract modeled on Azerbaijan’s oil industry