As with other investments in oil and gas real estate, where investors generally need a specialized asset operator, the company (or its subsidiary) is responsible for asset management in accordance with a service or management agreement. There should also be a backup provider that can intervene to manage assets in the event of failures on the part of the E-P company. Production revenues are allocated according to a “cascade” that provides for the order of distributions for commitments such as payment of EPS costs (including service and hedging costs), debt servicing on bonds[15] and financing of reserve accounts (if not fully funded at closing) , the owner of the EPS participation (or another residual interest holder) receiving payments at the bottom of the waters. In the case of VPpp financing, the lender (“VPP-Kufer”) (z.B. a bank or private equity firm, either directly or through an ad hoc entity (“EPS”), by pre-purchasing funds from the producer,[8] by purchasing from that producer a volumetric production payment, which is a non-operational, non-paying licence fee from certain leasing interests of the oil and gas seller (“Specified Properties”). Instead of cash, the VPP authorizes the purchaser of VPP to have a certain proportion of the hydrocarbons produced from the characteristics indicated over the specified lifespan. In parallel with the conclusion of the agreement with the manufacturer, the purchaser of VPP will generally monetized production by entering into a futures contract to pre-sell hydrocarbons at a specified price (e.g. B.dem spot price or on the basis of hydrocarbon futures prices). In addition, the buyer of VPP will generally hedge its hydrocarbon price risk by entering into derivatives transactions such as commodity swups.

A Volume Production Flow (VPP) deal is a means of financing used for several decades in the oil and gas industry. [1] A VPP is the owner of an oil and gas property that sells a percentage of its production for a down payment. [2] As a general rule, we see small exploration and production companies using VPP agreements because they are capital-intensive, while retaining full ownership of their business and not watering down their company`s equity position. [3] In the oil and gas industry, Chesapeake Energy is the most visible user of VPPs, which has raised about $5 billion in working capital since 2008, without getting into debt on its books or watering down shareholders by issuing other shares. In the context of a VPP, a bank or hedge fund effectively acquires and receives a portion of the mineral reserves as part of an oil and gas leasing or a group of leases. This raises legal issues when the VPP seller (usually the operator of the lease agreement and subject to a joint operating contract with his tenants) sells and transports a portion of the mineral reserves in which he holds an undivided interest and then retains the entire advance of VPP without sharing it with his roommates (other owners of employment interests). Each App Store product or iBooks Store product, the volume purchased on the VPP service can be made available to your authorized end-users or i) via direct transfer to the iTunes account of any authorized end-user (“Managed Distribution”), (ii) by distributing alphanumeric codes generated by iTunes (“content codes”), which can be exchanged on the App Store for certain content. , or in the iBooks Store for certain book content; or (iii) only for apps by directly assigning an iOS device, in this case (a) separate purchases for each device (i.e.: