Jun 26, · A production payment (sometimes referred to as an “oil payment,” especially if limited to oil production) is “a share of the oil [or gas] produced from described premises, free of the costs of production at the surface, terminating when a given volume of production has been paid over or when a specified sum from the sale of such oil [or. Representing producers in connection with debt and equity financing arrangements for ongoing acquisitions and E&P operations including private equity financings, secured borrowing base credit facilities, mezzanine and asset-backed financings, volumetric production payment (VPP) and net profits interest (NPI) financings, land bank agreements. Mar 01, · It is carved out of the lessee’s working interest and typically lasts for the life of the lease. 1 A production payment (or oil payment) is an ORRI that is limited to a specified term. 2 A production payment lasts until a specified volume of production is met or a specified value of such production is realized. 3 A volumetric production.