In a _____________, the contractor pays all of the costs and assumes all of the risks related to exploration, appraisal, development, and production activities. If production is attained, the contractor is, in return, allowed to recoup its costs as production is sold, and in addition, receives a fee typically based on production.

a. Lease

b. Production sharing contract

c. Risk service agreement

d. Concession agreement

e. Nonrisk service agreement