SOCAR operates 27 onshore and offshore fields, in the Azerbaijani sector of the Caspian Sea, jointly with other companies. Except for Ramana, jointly developed with AzGerneft LLC, the other fields are developed based on the Production Sharing and Risk Service agreements concluded between the government (or state oil and gas company) and the oil and gas company(s). Generally, the company assumes all the financial and operational risks essential to develop the field. Under this type of agreement, after the exploration phase, the revenue from hydrocarbon production is shared between the parties following payment of the company’s capital and operating expenses. The difference between these two agreements is that in a Production Sharing Agreement, the company receives a share of the production, while in a Risk Service Agreement, oil and gas company receives monetary rewards from the government upon the oil production.