{"id":7062806,"date":"2026-09-21T06:12:46","date_gmt":"2026-09-21T06:12:46","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/non-recoverable-contract-costs-in-bangladeshs-model-psc-2026\/"},"modified":"2026-09-21T06:12:46","modified_gmt":"2026-09-21T06:12:46","slug":"non-recoverable-contract-costs-in-bangladeshs-model-psc-2026","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7062806","title":{"rendered":"Non-Recoverable Contract Costs in Bangladesh\u2019s Model PSC 2026"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-body-7987375957008032578\" itemprop=\"description articleBody\">\n<div style=\"text-align: justify;\">In last week\u2019s post, we discussed various non-recoverable costs in the recent <a href=\"https:\/\/practicalacademic.blogspot.com\/2026\/09\/costs-not-recoverable-under-sri-lankan.html\">Sri Lankan Model Petroleum Resources Agreement<\/a>. In this post, we discuss non-recoverable costs Bangladesh\u2019s recent Model Offshore Production Sharing Contract (\u201cPSC\u201d).<\/div>\n<div style=\"text-align: justify;\">\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEhgq0etaPoDNt0yESLjby_SrRk8il0-pbJk78FtZVmu1-fm_6JhWQDDaQyQS9ixsHLQuu3lhRzr9RkdRIgDsN6QUBHj5B-TeUkBNuY3jF5fDVO_ZPMIPb_oYhSjHeFgn1VpRKbsUINMaDYhGCrBFUOBgyMxZ2rjw5fcgvbXZDZv7bgE16awR8IsfmMK3FM\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" data-original-height=\"244\" data-original-width=\"1048\" height=\"94\" src=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEhgq0etaPoDNt0yESLjby_SrRk8il0-pbJk78FtZVmu1-fm_6JhWQDDaQyQS9ixsHLQuu3lhRzr9RkdRIgDsN6QUBHj5B-TeUkBNuY3jF5fDVO_ZPMIPb_oYhSjHeFgn1VpRKbsUINMaDYhGCrBFUOBgyMxZ2rjw5fcgvbXZDZv7bgE16awR8IsfmMK3FM=w401-h94\" title=\"Image from here\" width=\"401\"\/><\/a><\/div>\n<\/div>\n<p>Clause 14.3 of the Model PSC states:<\/p>\n<p>\u201c<i><b><u>Subject to the Accounting Procedure<\/u><\/b> and the auditing provisions of this Contract, <b><u>Contractor shall recover all costs and expenses not excluded by the provisions of this Contract and the Accounting Procedure<\/u><\/b> in respect of all the Exploration, Appraisal, Development, Production, Abandonment and related operations hereunder with respect to the Contract Area to the extent of and out of a maximum of seventy five percent(75%) of Petroleum from both shallow and deep sea blocks per Calendar Year of all Available Oil\/ Natural Gas\/ Condensate\/ NGL from the Contract Area (hereinafter referred to as &#8220;Cost Recovery Petroleum&#8221;)<\/i>.\u201d (emphasis added)<\/p>\n<p>Clause 14.3 excludes recovery of those costs which are held as such in the PSC and its Accounting Procedure (Annexure-B to the Model PSC). Section 7 of the Accounting Procedure contains a list of 26 heads of non-recoverable costs.<\/p>\n<p>Similar to the exercise we did for Sri Lanka\u2019s MPRA, we have classified these 26 heads into distinct buckets and have tabulated it:<\/p>\n<div style=\"text-align: justify;\">\n<table border=\"1\" cellpadding=\"0\" cellspacing=\"0\" class=\"MsoTableGrid\" style=\"border-collapse: collapse; border-color: currentcolor; border-image: none; border-style: none; border-width: medium; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\">\n<tbody>\n<tr>\n<td style=\"border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\"><b>Category<o:p\/><\/b><\/p>\n<\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\"><b>Description<o:p\/><\/b><\/p>\n<\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\"><b>Section 7 Items<o:p\/><\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Before Effective Date \/ Outside Bangladesh \/ Outside Measurement Point<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Costs incurred before the Effective Date not incurred under Work<br \/>\n  Program and Budget; costs incurred beyond the measurement point; income tax<br \/>\n  and other taxes incurred outside Bangladesh; certain administrative overhead<br \/>\n  outside Bangladesh. <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">c, h, i, s<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Financing and Fund-Raising Costs<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Interest and financing charges; expenditure to negotiate, obtain or<br \/>\n  secure funds, exchange losses on financing, etc.; expenditure for <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><span lang=\"EN-US\">furnishing and maintaining bank<br \/>\n  guarantees and indemnities<\/span><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">a, q, r<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Unsupported \/ Unapproved Costs<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Costs lacking proper original records; charges for goods &amp; services<br \/>\n  unsupported by supplier\/ sub-contractor agreement costs; not included in<br \/>\n  approved Work Program and Budget; emergency expenditure not timely reported<br \/>\n  to Petrobangla; donations and contributions not pre-approved by Petrobangla; benefits<br \/>\n  not identified as recoverable under Section 3.1(c). \u00a0<a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">b, e, m, n, p, v<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Excess Costs \/ Gold-Plating \/ Unreasonable Expenditure<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Goods and services priced above international market rates; material<br \/>\n  costs exceeding permitted values; costs not reasonably required for Petroleum<br \/>\n  Operations; materials and services exceeding allowable valuation principles. <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">d, f, g, t<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Taxes and Contractual Payments <o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Income tax payable by Contractor; payments under Articles 20.1-20.4 (bonuses)<br \/>\n  and 25.6 (training of Petrobangla employees). <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">j, o<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Dispute Resolution Costs<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Costs of expert determination and arbitration. <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">k<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Fines, Penalties; losses from PSC and third party contracts; negligence<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Fines and penalties; Costs resulting from willful misconduct or<br \/>\n  negligence of Contractor; amounts paid with respect to non-fulfillment of a<br \/>\n  contractual obligation with third party and loss due to non-compliance of PSC<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">l, x, z<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Partnership \/ Joint Venture \/ Acquisition Costs<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Costs of creating or managing partnerships or joint ventures; acquiring<br \/>\n  interests in the Contract or Contract Area. <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">u<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Insurance-Related Exclusions<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Costs covered by insurance; losses resulting from failure to insure;<br \/>\n  recoverable insured losses not claimed; losses that would have been covered<br \/>\n  under approved self-insurance arrangements. <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">w(i)-(iv)<o:p\/><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Committee and Governance Costs<o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 259.95pt;\" valign=\"top\" width=\"347\">\n<p class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: justify;\">Expenses of members of the Joint Management Committee (JMC) and Joint<br \/>\n  Review Committee (JRC). <a href=\"https:\/\/bharatpetroleum-my.sharepoint.com\/personal\/sbadrinath_corp_bharatpetroleum_com\/Documents\/Microsoft%20Copilot%20Chat%20Files\/Cost%20Recovery.pdf\"\/><o:p\/><\/p>\n<\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-color: currentcolor windowtext windowtext currentcolor; border-left: none; border-right: solid windowtext 1.0pt; border-style: none solid solid none; border-top: none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 68.3pt;\" valign=\"top\" width=\"91\">\n<p align=\"center\" class=\"MsoNormal\" style=\"line-height: 115%; margin-bottom: 8pt; text-align: center;\">y<o:p\/><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div style=\"text-align: justify;\">Like the Sri Lankan MPRA, <a href=\"https:\/\/cdn.prod.website-files.com\/677b6bb4f4d7d19e2c0575a9\/6a4f1f9e11ca893e8be841fe_Bangladesh%20Offshore%20Model%20PSC%202026.pdf\">Bangladesh&#8217;s Model PSC<\/a> also displays a long list of items that are not cost recoverable.<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>In last week\u2019s post, we discussed various non-recoverable costs in the recent Sri Lankan Model Petroleum Resources Agreement. In this post, we discuss non-recoverable costs Bangladesh\u2019s recent Model Offshore Production Sharing Contract (\u201cPSC\u201d). Clause 14.3 of the Model PSC states: \u201cSubject to the Accounting Procedure and the auditing provisions of this Contract, Contractor shall recover [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7062807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[224680],"tags":[43602,13536,13594,1168,224681,193765],"dealstore":[],"offerexpiration":[],"class_list":["post-7062806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-production-sharing-contracts","tag-bangladeshs","tag-contract","tag-costs","tag-model","tag-nonrecoverable","tag-psc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Non-Recoverable Contract Costs in Bangladesh\u2019s Model PSC 2026 - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7062806\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Non-Recoverable Contract Costs in Bangladesh\u2019s Model PSC 2026 - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"In last week\u2019s post, we discussed various non-recoverable costs in the recent Sri Lankan Model Petroleum Resources Agreement. 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