INTRODUCTION:
Petroleum has a finite shelf life. This resource cannot be replenished. This underpins all business decisions made by governments and corporations, a significant component of which is that the majority of petroleum contracts are designed to take into account a project’s beginning, middle, and end.
Although the specifics of upstream petroleum contracts might vary greatly, they must establish two fundamental principles on how earnings are split between the government and participating companies.
OBJECTIVES
Participants will have a working knowledge of Upstream Petroleum Contracts and how to apply this knowledge to administering Production Sharing Contracts. Further, participant will gain working knowledge of accounting and auditing procedures that will need to be implemented.Â
At the end of this training course, you will learn to:
- Gain a full understanding of the different types of the Upstream Petroleum Contracts
- Understand the main contractual terms and their differences between the various types of contracts from PSA, Service contracts and others
- Be aware of the approaches to negotiation of these contracts
- Incorporate the best terms into these Upstream Petroleum Contracts
WHO SHOULD ATTEND?
This Upstream Petroleum Contracts training course will benefit all levels of personnel involved in resolution of oil and gas disputes. It will enable a broad range of disciplines to appreciate and understand the complexities of conflict resolution in particular in the Oil and Gas industry, and how best to manage disputes in the oil and gas industry.
This training course is appropriate to a wide range of professionals but will greatly benefit:
- Senior Contract Negotiators and Managers
- Legal Managers, Legal Counsel
- Commercial and Business Managers
- Contracts Administrators and Managers
- Commercial, Financial and Insurance Professionals
- Project and General Management Personnel
 Course Outline
DAY 1
Introduction and Overview of Upstream Petroleum Contracts
- Brief Overview of the O&G Industry
- Oil and Gas Terminology
- The Legal Framework to Upstream Contracts
- Introduction to Contract Formation
- Key Oil and Gas Terminology
- Oil and Gas Industry Structure
- Relationship between Different Players in the Oil and Gas Industry
- Phases of the Oil and Gas Industry
- Oil and Gas Contract Fundamentals and Legal Principles
- Territorial Water, Continental Shelf and United Nations Convention on the Law of the Sea (UNCLOS)
DAY 2Â
Contracting in The Upstream Sector: Ownership and Licensing
- Ownership and Exploitation of Reserves
- The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
- Characteristics of Upstream Contracts
- Commercial Realities of the Oil and Gas Business
- Agreement with Resource Holders
- Ownership of Oil and Gas
- Risk Service Contracts (RSCs)
- Grant of Rights by Resource Holder
- Host Country’s Legal and Regulatory Framework and Fiscal Regime –Â Stabilization
- Role of Host Government
- Key Issues in International Oil and Gas Contracts
- Negotiation Framework and Strategy –Â Objectives of Host Countries / NOCs and IOCs
- Host Government‘s Role in Upstream (Exploration & Production (E&P)) Agreements
- Overview of Upstream Operations and E&P Agreements (types and trends by region)
- Key Differences between Production Sharing Contracts (PSCs), Concessions, Service Contracts and JV Contracts
- Role of Host Government in Upstream Contracts
DAY 3
Production Sharing Contracts (PSC) & Joint Operating Agreements (JOA)
- Commercial Terms in Licensing and Concession Agreements
- Fiscal Arrangements, License Fees
- Five Key Financial Aspects to a PSC:
(a) Royalty, The R factor
(b) Cost Oil
(c) Profit Oil
(d) Taxation
(e) Bonuses, Penalties
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- PSC – Cash Flow Distribution
- PSC – CF Distribution Example – Year N+1
- Comparison of Fiscal Systems
- Joint Operating Agreements (JOAs)
- What is a Joint Operating Agreement (JOA)?
- Nature, Aim and Functions of a Joint Venture
- Government Approval
- Key Areas of the JOA
- Purpose and Scope: Participating Interests
DAY 4
Service Contracts, Farm-In and Farm-Out and Unitization – Risk Bearing and Non- Risk Bearing Service ContractsÂ
- Participation Agreements (Farm-in and Farm-out)
- Agreements for Farm-ins and Farm-outs
- Nature of the Farm-out
- Subject Matter of the Farm-out
- Interest Assigned and Reserved
- Assignment of Interest
- Unitization and Unit Operating Agreements (UUOAs)
- What is unitization?
- Unitization in Practice
- Government Approval
- Transboundary Unitization
DAY 5Â
Negotiating Production Sharing ContractsÂ
- Government Take
- Production Share and Cost Recovery
- Local Content
- Force Majeure
- Dispute Resolution
- Stabilization and Renegotiation Provisions
Negotiation Simulation Exercise
- Negotiation a PSA with a Government Entity
- Objective:Â The objective is to establish what can be achieved in the meeting, what preparation is needed for it and what strategy should be adopted and then to pursue this strategy
- Feedback Session
Negotiation of Oil and Gas Disputes
- Importance of Negotiation in Oil and Gas Business
- Disadvantages of Competitive or Positional Negotiation
- Principled Negotiation between the Parties to Achieve Best Results
Method of Instruction
Online
Course Duration:
5 days
Type of Certificate Issued:
On a successful completion of this training, Participants will be issued
Certificate in Upstream Petroleum Contracts
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Participants can choose to have their certificate in any of the three options below:
- Digital Certificate (Downloadable (PDF)
- Physical Certificate with security marking shipped to your location with a price
- Framed Certificate with security markings shipped to your location with a price.
REGISTRATION