Petroleum royalty agreements are well understood and widely used in several jurisdictions worldwide, and are increasingly being used in many new jurisdictions as a tool for petroleum project development, financing and divestment. However, they are not always drafted with the necessary rigour, and deficiencies are commonplace.This Special Report provides an overview of the key issues relating to petroleum royalty agreements (with drafting examples), including:•key forms of royalty agreement (including gross overriding royalties, net profit interests, cash and in-kind royalties);•an explanation of the economic underpinning of royalty agreements;•the content and effect of key royalty agreement provisions; and•additional provisions which can be found in royalty agreements. It will be an invaluable guide to legal, commercial and financial professionals engaged in petroleum project financing, development and divestment.