Oil & Gas
Profit Oil Entitlement — PSC Share
Recording the company's share of 'profit oil' after cost recovery under a PSC.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Profit Oil Receivable | Asset (+) | 8,000,000.00 | - |
| Profit Oil Revenue | Revenue (+) | - | 8,000,000.00 |
💡 Accountant's Note
After cost recovery, the remaining production ('profit oil') is split between the company and the government per the agreed PSC formula — often on a sliding scale based on cumulative production or R-factor (return on investment).
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