An Overview of Volumetric Production Payments (VPPs): Issues and Considerations | Practical Law
A Practice Note discussing the use of volumetric production payments (VPPs) as an alternative financing mechanism to the traditional financing sources oil & gas producers typically use (for example, reserve based loans and high yield debt). This Note also discusses the benefits of VPPs to producers and capital providers and the conditions a VPP must satisfy to qualify for these benefits.