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

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

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