What is a Production Sharing Agreement? Identify any special roles or obligations of each party related to the production sharing agreement.Most often a Production Sharing Agreement is used when there are already one or more units on some or all the acreage. PSC and PSA (for "production sharing agreement") are commonly used interchangeably in the literature. How should the foreign firm become involved in the country? A Production Sharing Agreement is a commercial contract between an investor and the state. While these agreements are not the only means for regulating the exploration and development of hydrocarbons, they have been used extensively in a number of. (f) carrying out the Petroleum Works in the most appropriate way and generally implementing all appropriate means for carrying them out, while respecting the. 1.41 "Exploration Well" means a well (that is neither a Development Well nor an. Appraisal Well) as defined in the Rules drilled in search of Petroleum not.