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Discover the IHRDC Energy Glossarybeta

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Cost Oil

The percentage of production (e.g. 40%) that a PSC Contractor receives to repay its capital, operating and, if permitted, interest costs. In some cases, the Operator is allowed to recover an uplift (e.g.120%) of costs with the additional amount referred to as an Investment Credit. The Cost Oil quantity is converted to dollars using one or more reference crude market prices.