It is common for oil companies to enter into ‘production-sharing contracts’ with foreign governments. Typically, the contract allows the company to set up oil production within the foreign country or territory and to take all the profits from the source. After a number of years, the foreign government takes control of the production and enjoys the profits thereafter.
It is usual under these agreements for ownership of the oil-production equipment to be transferred at some stage to the foreign government.
Under CAA 2001, s. 167–170, the oil company is deemed to continue owning the plant or machinery until it ceases: