Production Handling Agreements

In Production Handling Agreements, or PHAs, we retain ownership of the processing facility. Processing of all production is covered by either:

• A Demand Fee, which is a commitment from operators for a set term lease that covers a portion of the total facility cost;
• A Commodity Fee that is a per barrel processing charge.

The PHA contract structure provides for third-party processing, facilitates multiple partner alliances and reduces the complexity of contractual negotiations.