Oil concessions

Oil concessions are agreements between a government and an oil company that grant the company exclusive rights to explore for, develop, and produce petroleum resources within a specific area. In exchange, the company typically pays fees, royalties, or a share of the oil revenue to the government. These concessions enable companies to invest in infrastructure and technology needed for extraction, while governments benefit from resource development and revenue. Essentially, it's a legal license allowing private companies to operate in a country’s oil sector under agreed terms.