Investments glossary

Volumetric Production Payment (VPP)

A Volumetric Production Payment (VPP) is a type of structured investment that involves the owner of an oil or gas interest selling or borrowing money against a specific volume of production associated with that field or property. The investor or lender receives a stated monthly quota – often in raw output, which is then marketed by the VPP buyer – or, a specified percentage of the monthly production achieved at the given property.

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