INTRODUCTION
Business of oil and gas is
contractually and technically complex, involving enormous capital along with
some risks and uncertainties. It is often significantly influenced by
geopolitical events. In this programme you will study:
·
The
basics of oil and gas exploration, production, and the oil and gas recovery
economics to fully understand the business and the essential contracting terms
·
The
various types of petroleum contracts and their key attributes, along with the
contracting parties’ roles and responsibilities
·
The
rights and obligations of all parties concerned such as national oil companies,
international oil companies and the host government
·
The
wide-ranging financial tools used in the oil and gas industry contracts are
evaluated along with the fiscal strategies that impact each party’s
profitability
·
How
these profitability considerations provide incentives for investment and
re-investment throughout various stages of oil and gas exploration and
production
·
How
the understanding of negotiations skills, avoiding conflicts, and effectively
preparing for negotiations, helps in concluding successful agreements
WHO SHOULD ATTEND?
·
Business
Development managers seeking new opportunities in different countries
·
Negotiators
and contracting professionals
·
Corporate
planning professionals
·
Professional
personnel such as legal, environmental, banking, insurance, finance and tax
advisors –working on oil & gas production sharing, oil concession and Joint
Venture contacts analyzing suitable fiscal regimes.
·
Geologists,
geophysicist, petroleum engineersseeking understanding of different fiscal
regimes in commercial contracts
·
Supply
planners & scheduling professionals
·
Government
regulators
·
Auditing
personnel
·
Compliance
officers
·
Equity
analyst and Bankers
·
Joint
Venture officers
PROGRAMME OBJECTIVES
·
Gain
broad perspective of what are the essential factors in oil and gas
business
·
Enhance
your understanding of the fundaments oil and gas law, and the commercial
contracts
·
Evaluate
the technical, commercial, and financial aspects of oil & gas contracts and
their impact on the profitability
·
Confidently
discuss the technical terms, concepts and buzzwords with your peers and clients
·
Master
the negotiations skills, lead and influence business agreements towards
successful contracts
TRAINING METHODOLOGY
Participants will learn by active
participation throughout the programme through the use of programme materials,
oil & gas contracts, case study exercises, quizzes, training videos and
discussion of business cases issues relating to different fiscal regimes in
production sharing, oil concession and service contracts in their organizations.
Participants will learn negotiation skills.
PROGRAMME SUMMARY
To understand oil and gas commercial
contracts, along with its technical terms and conditions, fiscal terms and
fiscal regime calculations for contractor and host government. It also presents
different fiscal tools, fiscal strategies and their impact each party’s
profitability. In addition, this program offers negotiations skills to
successfully complete business agreements.
PROGRAMME OUTLINE
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DAY 1 -
INTRODUCTION
TO LEGAL, FISCAL AND CONTRACTUAL BASICS
Crude Oil & Gas
·
The
Oil Industry Streams
·
Demand
Drivers for Crude Oil
·
Drilling
Contracts – Contract Alternatives
Legal Fiscal and Contractual
Framework Ownership
·
Oil
and Gas Rights and Ownership – The Ad Coelom Doctrine
·
The
Rule of Capture
·
A
rule of "No liability”
·
Limitations
to Rule of Capture
·
Theories
of Ownership – Escaped Hydrocarbons
·
Drainage
by Enhanced-recovery Operations
·
Doctrine
of Correlative Rights
·
Conservation
Laws – Drilling Wells
·
Conservation
Laws – Fair Share Doctrine
·
Function
of Oil and Gas Conservation Laws
·
Well-Spacing
Rules
|
|
DAY 2 -
INTRODUCTION
TO CONTRACTS
Kinds of Oil and Gas Interests
·
Fee
Interest
·
Mineral
Interest
·
Leasehold
Interest
·
Surface
Interest
·
Royalty
Interest
·
Production
Payment
·
Carried
Interest
·
Other
Interests
Key Stages of Petroleum Projects
in View of Contracts
·
Explore
to find it in the first place;
·
Develop
the infrastructure to remove oil & gas from ground;
·
Produce
(and sell) the oil & gas you have found;
·
Abandon
the wells and protect the environment when it runs out and clean up
("decommission”)
What is a Petroleum Contract
·
Need
for Collaboration between parties
·
What
is a Petroleum Contract?
·
Host
Government Contract
·
Petroleum
Fiscal Regime defined
·
Petroleum
contracts under different regimes
·
Awarding
or winning contracts
·
Types
of Petroleum Contracts and their Key Attributes
·
Upstream
Project Agreement
·
Host
Government Take
·
An
example of Concessionary System’s Cash Flow
·
Optimal
Government Take
·
PSC
– Cash Flow Distribution
·
PSC
– CF Distribution Example – Year N+1
·
Comparison
of Fiscal Systems
·
Flexible
Fiscal Regimes
·
Why
Dynamic Terms are used in Contracts
·
Joint
Ventures and Other Combinations
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|
DAY 3 -
ROLES,
RESPONSIBILITIES AND FISCAL TOOLS
Dissection of Petroleum Contracts
·
The
document follows the events of project
·
Order
and Disorder in the Clauses
Parties Roles and Responsibilities
in Petroleum Contracts
·
The
General Framework of parties involved
·
National
Oil Company Multiple roles
·
International
Oil Company Role
·
Grants
of Rights to a party – Contractor and Host Government
·
Rights
and Obligations of Host Government
·
Addressing
important operational issues in the contract
·
Contract
Area or Block
·
Time
periods in contracts
·
Minimum
Work Obligations in Exploration Phase
·
Relinquishment
of Unused Area to Government
·
Discovery,
Appraisal, Declaration of Commerciality and Development
·
Post
Commercial Discovery - A Field development Plan
·
Annual
Work Programs & Budgets – Petroleum Contracts
·
Joint
Management – Petroleum Contracts
·
Deadlock
– Petroleum Contracts
The Financial Considerations in
Petroleum Contracts – Fiscal Tools
·
Tools
for Concessions, Production Sharing Contract and Participating Agreements
·
Signature
Bonus
·
Production
Bonus
·
Rental
·
Royalty
– Fixed Royalty, Sliding Royalty, & Royalty Determination Point
·
Payment
in Cash or In Kind
·
Corporate
Income Tax and Ring Fencing
·
Profit
Sharing
·
Production
Sharing – Contract’s & Government share
·
Fixed
Profit Oil Shares
·
Sliding
Scale Profit Sharing
·
Cost
Oil
·
State
Participation – A Fiscal Tool in PSC
|
|
DAY 4 -
STRATEGIES
AND SOLUTIONS
Fiscal Strategies and Solutions
·
Intro
to Fiscal Strategies and Solutions in PSC
·
Strategies
for State to meet their Profitability
·
The
4 Key Questions that Defines the Strategy
·
The
Changing Profitability – Due to Prices, Costs, Production Rates
·
Understanding
the Regressive, Neutral & Progressive Fiscal Tools
·
Approaches
to Profitability
·
Profitability
And The Fiscal Tools
·
Timing
of Petroleum Revenues – Fiscal Tools
·
Risk
for The State – Fiscal Tools
·
State
Participation as a Co-Investor
·
Encouraging
Investment and Re-Investment
·
The
Shift to Unconventional Oil & Gas
Gas and LNG Contracts
·
The
Distinct Characteristics
·
Liquefied
Natural Gas Business
·
Liquefied
Natural Gas – Contracts
·
Gas
Sales and Transportation Contracts
·
Gas
Transportation Tariffs
·
Gas
Sales Agreements – Terms & Quantity
·
LNG
Sales And Purchase Agreements
·
General
Economics for Gas Exploration & Development
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|
DAY 5 -
NEGOTIATIONS
SKILLS
The Natural Gas Sales and LNG
Business Contracts Markets
·
Distinct
characteristics of natural gas
·
Liquefied
Natural Gas Business
·
Liquefied
Natural Gas – Contracts
·
Gas
Sales and Transportation Contracts
·
Gas
Transportation Tariffs
·
Gas
Sales Agreements
·
General
Economics for Gas Exploration & Development
·
LNG
Sales And Purchase Agreement
Art and Science of Negotiations
Skills
·
What
is negotiation?
·
Understanding
relations between conflicts and negotiations
·
Identify
key roles and responsibilities of negotiating team
·
Preparing
for negotiations
·
Implement
an effective negotiations process
·
Understanding
key success bargaining factors
·
Concluding
the negotiations
Assignments and Business Case
Studies
Glossary & Abbreviations in
Oil & Gas Downstream
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