Cash Calls in Oil and Gas Venture Operations

Introduction

Many universal and national oil and gas organizations are collaborating in Joint Venture (JV) projects in order to improve and produce oil and/or gas in an economically viable use. It also assists oil and gas organizations in mitigating risk at various stages of a department's lifecycle.

Every year, billions of dollars are spent on upstream projects.

This large amount of investment will be made primarily in accordance with the terms and conditions of Joint Operating Agreements (JOA), which require all shareholders to contribute funds to shared activities. Fundamentally, a Joint Venture agreement requires all shareholders to pay their share of expenses (either operating or capital) in response to a cash call by the director; however, if any of the investors fails to pay its share, the agreement terminates. Under the terms and conditions of the Joint Operating Agreements, such a failure will usually result in a "Default" (JOA).

This course is intended to explain the fundamentals of cash calling in joint venture contracts, including effective accounting procedures and reporting, cash models, 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 outcomes related to oil and gas joint venture budgeting and auditing rules.

To illuminate the specialty application of the concepts in the course, both the structural aspects of cash calling and real-world case studies will be discussed.

Course Objectives of Cash Calls in Oil and Gas Venture Operations

This is a unique course with expert techniques that allow representatives from all financial and commercial disciplines to effectively understand the Cash Calling projects through the oil and gas joint venture. Outstanding cash calls and repayment options, the impression of cash default on the project viability, and disputes – are involved. 

This course will also cover contract models, and it also outlines critical issues required in making oil and gas joint venture successful and the accounting, budgeting, and auditing applications included.

By the end of this course participants will be:

• Capable to understand all the types of JV agreements in Oil & Gas industry

• Qualified to understand the issues to negotiate and agree on a JVCC Arrangement

• Capable to choose the most appropriate forms of JVCC

• Receive how they administer it during the asset’s production phase

• Implement attendees with the required knowledge to play a role in the JVCC Arrangement environment in an effective and practical manner

Course Methodology of Cash Calls in Oil and Gas Venture Operations

This course will use a variety of proven methods to ensure the best understanding, comprehension, and retention of the information manifested.

This training course is very interactive involving representatives in the discussion, analysis of case studies, and activities. Where appropriate, these will cover real issues brought to the workshop by participants.

Organizational Impact of Cash Calls in Oil and Gas Venture Operations

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

The organization will increase from representatives with:

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

• Recognizing the methods in oil and gas joint venture accounting, budgeting, reporting, and auditing

• Investigating cash call types, Accounting, and funding for oil and gas joint venture processes

• Investigating cash calling and evaluation of its influence in the joint venture business

• Resolving problems connected with cash calls in O & G joint venture operations

Personal Impact of Cash Calls in Oil and Gas Venture Operations

This course will of personal advantage to representatives by giving you with a:

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

• Developed awareness and skills to develop your effectiveness

• A capability to evaluate, analyze and recommend action

• Improved self-confidence and motivation at work

• More excellent job satisfaction in giving quality support to management

• Greater capability to supervise, promote and motivate colleagues