Venture Operations of Cash Calls for Oil and Gas

Introduction

Many international and national oil and gas companies collaborate in joint venture (JV) projects in order to develop and produce oil and/or gas in an economically viable manner. It also assists oil and gas companies in mitigating risk at various stages of a field's lifecycle.

Every year, billions of dollars are invested in upstream projects. This massive investment will be driven primarily by the terms and conditions of Joint Operating Agreements (JOA), which require all participants to contribute funds to shared activities. A Joint Venture agreement fundamentally requires all participants to pay their share of expenses (operating or capital) upon a cash call by the operator; however, if any of the investors fails to pay its share. Under the terms and conditions of the Joint Operating Agreements, such a failure would normally be considered a "Default" (JOA).

This course explains the fundamentals of cash calling in joint venture contracts with practical accounting procedures and reporting; types of cash; fundamentals and workflows for cash calling in joint venture contracts; outstanding cash calls and repayment options; and the impact of cash default on joint venture operations and profitability. The course also emphasizes critical issues related to implementing budgeting and auditing processes for oil and gas joint ventures. To demonstrate the field application of the concepts covered in the course, both the structural aspects of cash calling and real-world case studies will be discussed.

Course Objectives of Venture Operations of Cash Calls for Oil and Gas 

This is a unique training course with professional techniques that enables delegates from all financial and commercial disciplines to effectively understand the Cash Calling activities through the oil and gas joint venture. Outstanding cash calls and repayment options, the impact of cash default on the project viability, and disputes – are included. 

This course will also cover contract types, and it also outlines critical issues involved in making an oil and gas joint venture successful and the accounting, budgeting, and auditing practices involved.

By the end of this course:

• Delegates will be able to understand all the types of JV agreement in Oil & Gas industry

• Delegates will be able to understand the issues to negotiate and agree with a JVCC Arrangement

• Delegates will be able to select the most appropriate forms of JVCC

• Delegates will learn, and how to administer it during the asset’s production phase

• This advanced course will also equip attendees with the necessary knowledge to play a role in the JVCC Arrangement environment in an efficient and effective manner

Course Methodology of Venture Operations of Cash Calls for Oil and Gas

This course will utilize a variety of proven techniques to ensure maximum understanding, comprehension, and retention of the information presented. This training course is highly interactive involving delegates in the discussion, analysis of case studies, and exercises. Where appropriate, these will include real issues brought to the workshop by delegates.

Organizational Impact of Venture Operations of Cash Calls for Oil and Gas 

This course is of direct relevance to the Oil & Gas sector and as a result, the organizations will benefit greatly from their employee’s participation.

The organization will gain from employees with:

• Understanding the nature of joint venture business structure and how to effectively perform the risks and benefits analysis in Joint Venture (JV)

• Identifying the processes in oil and gas joint venture accounting, budgeting, reporting, and auditing

• Exploring cash call types, Accounting, and funding for oil and gas joint venture operations

• Analyzing cash calling and evaluation its impact in the joint venture business

• Solving problems associated with cash calls in O & G joint venture operations

Personal Impact of Venture Operations of Cash Calls for Oil and Gas 

This course will of personal benefit to delegates by providing you :

• A better understanding of the context and importance of the work you do

• Improved knowledge and skills to improve your effectiveness

• An ability to evaluate, analyses, and recommend action

• Increased self-confidence and motivation at work

• Greater job satisfaction in providing quality support to management

• Greater ability to supervise, develop and motivate colleagues