A critical discussion on the concept and development of Production Sharing Agreements (PSAs) in the oil industry, particularly focusing on their historical context and modern relevance, especially in Nigeria. It explains the structure of PSAs, where a country or national oil company partners with international oil companies (IOCs) to explore and develop petroleum resources. The IOCs bear the risks and costs, while the state retains ownership of the resources. The paper highlights the benefits and challenges of PSAs, their evolution since 1966, and how they help oil-producing countries attract investment while maintaining control over resources. It also addresses fiscal systems, types of contracts, and the influence of PSA adoption on global oil exploration.
