Petroleum is a nonrenewable resource that will not last forever. This fundamentally drives government and corporate business decisions, one of which is that most petroleum contracts are structured to consider the entire life cycle of a project, beginning, middle, and end.
The details of upstream petroleum contracts can vary greatly; however, all must establish two key issues regarding how profits are divided between the government and participating companies.
This Upstream Petroleum Contracts training course covers the various types of upstream petroleum contracts, their differences, and the key contractual terms that participants must understand in order to fully comprehend all types of Upstream Petroleum Contracts. This contract management training course covers production sharing contracts, exploration and production (E & P) contracts, exploration and exploitation contracts, and licensing contracts in detail, and participants have key elements of these contracts as well as their own. Make good use of it in your business. This upstream oil contract training program is highly practical, with hands-on interactive sessions to help participants understand real-world problems and avoid pitfalls.
Well-negotiated and well-crafted upstream oil contracts need to withstand the "trials of time" and provide the parties with stability and the ability to adapt to changing circumstances over the years.
The Fundamental Types of Upstream Petroleum Contracts
The Advantages and Disadvantages of the Different Types of Upstream Petroleum Contracts and How it is suitable for Specific Types of Projects
Concessions, Production Sharing & Risk Service Contract, Important Details and Suitability for any Oil and Gas Upstream Project
The Role of JOA in Upstream Petroleum Contracting Conciliation, Mediation and Settlement of Disputes
Understanding the Essentials Terms of Unitization and Farm-in, Farm-Out Agreements
Participants will have a working knowledge of Upstream Petroleum Contracts and how to apply this knowledge to administering Production Sharing Contracts. Further, the participant will gain a working knowledge of accounting and auditing procedures that will need to be implemented.
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 the negotiation of these contracts
Incorporate the best terms into these Upstream Petroleum Contracts
Participants will gain a better understanding of the subject through presentations by an experienced international practitioner designed to both inform and broaden the participants' perspectives. Case studies will be reviewed and discussed in light of some of the realistic scenarios that participants may face. Interactive discussions promote the discussion of problems and potential solutions. The negotiation simulation exercise will give participants a realistic sense of what it's like to negotiate a PSA contract.
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.
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
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)
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 - Stabilization
Role of Host Government
Key Issues in International Oil and Gas Contracts
Negotiation Framework and Strategy - 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
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
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
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
Government Take
Production Share and Cost Recovery
Local Content
Force Majeure
Dispute Resolution
Stabilization and Renegotiation Provisions
Negotiation of a PSA with a Government Entity
Objective: 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
Importance of Negotiation in the Oil and Gas Business
Disadvantages of Competitive or Positional Negotiation
Principled Negotiation between the Parties to Achieve the Best Results
