Author: bomuo

The right to receive a percentage of production or production revenues without having to invest in the cost of production. An overriding royalty is usually paid on the gross production revenues, namely before any expenses have been reimbursed and before even royalty has been paid to the state

Production overlift or underlift of petroleum can occur in annual records because of the necessity of companies to lift their entitlement of hydrocarbons in parcel sizes to suit the available shipping schedules. At any given financial year-end, a company may be in overlift or underlift. Companies must report the actual liftings made by the company during the year and not based on their production entitlement for the year