JV agreements in Azerbaijan became obsolete in 1998 and all current awards are under PSC terms. The BP-operated Azeri Chirag Guneshli (ACG) oil field and Shah Deniz gas-condensate field are the main PSC developments and provide the majority of production and investment. PSC terms include bonuses, fixed cost recovery, and negotiable profit oil splits based on a sliding scale ‘R-factor' system. The State oil company, SOCAR, participates directly in all contracts, typically taking a stake between 10% and 50%, and is usually carried through the exploration phase. In 2017-18, Azerbaijan awarded its first Risk Service Agreements (RSAs) for the offshore Umid-Babek and Karabakh projects. RSAs are largely similar to a typical PSC and contain cost recovery and profit sharing mechanisms.