PSC Module 1 & 2 - PSC Module 1

This 5 day course provides you with critical information to create the right commercial framework for successful PSC negotiations

Location: Houston, USA

Venue: To be confirmed

Starts: 28 Nov 2016

Ends: 30 Nov 2016

Type: Course

Register Now for USD 5,000 or Ask A Question

The Production Sharing Contracts (PSC) course provides critical information to create the right commercial framework for successful PSC negotiations. It examines state-of-the-art practice and techniques in fiscal system, analysis and design. Any type of ‘extractive industry’ will come under the realm of the course including coal, gold & rock mining, geothermal, coal-bed methane, conventional oil & gas, shale oil & gas, deepwater, enhanced oil recovery, LNG & gas-fired power generation. And that is because the PSC course goes way beyond just PSCs.

Course Director

Course Director

Key Issues to be Covered

For Module 1

  • Theory of Economic Rent
  • Taxation Theory related to the Petroleum Industry
  • Calculating Contractor Take: The Common Denominator
  • Negotiation of Commercial Terms: Key Aspects
  • Concessionary (Royalty/Tax) Systems
  • Production Sharing Contracts
  • Variations of the PSC Theme
  • Risk Service Contracts
  • Rate of Return Contracts
  • Joint Ventures
  • Technical Assistance/EOR PSCs
  • Threshold Field Size Analysis
  • The Global Market For Exploration Acreage
  • Worldwide Fiscal Systems

For Module 2

  • Introduction to Petroleum Economics & Analysis
  • Cash Flow Modelling & Analysis
  • Expected Value Theory
  • Exploration Threshold Field Size Analysis
  • Development Threshold Field Size Analysis
  • Exercises will include: – Cash Flow Audit Exercise – Value of Discovery Exercise – Value of Reserves-in-the-Ground Exercise – Dynamics of the Savings Index – Government Participation Analysis – Rate-of-Return System

The modern day PSC has evolved into a complex contractual document governing risks and rewards inherent in oil exploration. With volatile prices and changing geopolitical scenarios, it is vital to understand not only the changing terminology and semantics of the PSC but also how fiscal systems have evolved, their economic and financial impact. It covers:-

  • All types of fiscal/contractual arrangements that govern business relationships between oil companies and governments
  • Strong fundamental elements of normal petroleum operations, production & revenue generation, cost recovery and division of profits
  • Numerous variations on the basic themes such as royalty/tax, PSC and Service Agreements, Risk Service Contracts, rate of return systems & R-factors, ringfencing, relinquishment, bonuses & goldplating

Having been held in more than forty cities across the globe, with Middle East, Singapore and Houston as annual anchor course venues, the PSC course has consistently retained its status and renown as the world’s best-selling and the most authoritative course on the subject. More than 5,500 delegates from over 1500 global players have attended the PSC Courses held the world over in the past 20 years.

Who Should Attend

International & Government Negotiators

Corporate/Strategic Planners

Policy/ Economic/Financial Analysts

Legal Advisors & In-House Counse

Finance Directors & Managers

Accountants & Financial Controllers

Tax & Finance Advisors

Production & Reservoir Managers

Why You Should Attend

PSCs in over 30 countries will be examined. A must for all senior managers in new ventures, exploration, corporate planning, geology, as well as petroleum negotiators, oil company legal counsel, advisers, geologists and engineers. An additional session on the 4th/5th day of the course will feature practical computer-based basics of petroleum risk analysis and decision theory, progressing to the finer points of economic modelling in the international arena.

An additional session on the 4th/5th day of the course will feature practical computer-based basics of petroleum risk analysis and decision theory, progressing to the finer points of economic modelling in the international arena.

A GLOBAL COURSE FOR STATE-OF-THE-ART THEORY, PRACTICE & TECHNIQUES
IN FISCAL SYSTEM ANALYSIS & DESIGN

What you will learn

Module 1

  • PSCs/PSAs, Royalty/Tax Systems, Service Agreements, Risk Service Contracts, EOR PSCs
  • Negotiation & Commercial Terms
  • Government & Contractor Take, Effective Royalty Rate
  • Rate of Return Systems & R-Factors
  • Ringfencing, Relinquishment, Bonuses, Goldplating
  • Global Market for Exploration Acreage
  • What are the biggest concerns of National Oil Companies?

Plus Exercises on

  • Calculating government take
  • Effective royalty rates
  • Cash flow audits
  • Value of reserves
  • Savings index
  • Government participation
  • Lifting entitlement (‘booking barrels’)
  • Sliding scales

 

Module 2

  • Cash Flow Audit Exercise which will provide insight into the inner workings of a basic economic model for exploration or for field development feasibility studies
  • Value of a Discovery Exercise – depending on costs, prices and fiscal terms a discovery can hold a range of values. This exercise will bring this to life
  • Value of Reserves in-the-ground Exercise – this important exercise will show the diversity of values that exist for reserves and/or “rights to extract”
  • Dynamics of the Savings Index – this important exercise will show how we can quantify the incentive for a company to keep costs down and the magnification of this incentive when time value of money is considered
  • Government Participation Analysis – this is the source of too much controversy in the industry, this exercise will put this to rest
  • Rate-of-Return Systems and uplifts – do they really create an incentive to “gold plate”? One way to find out
  • A spreadsheet containing modules for performing cash flow analysis for most of the mainstream types of fiscal systems

Testimonials

Held in More Than 40 Countries Across the Globe with Anchor Venues In Singapore, Houston & London The PSC Course started life in the early 1990’s as a two-day course on Risk Analysis. Nearly two decades later, it has morphed into a five-day expose examining state-of-the-art practice and techniques in worldwide fiscal system, analysis and design, encompassing more than 45 variations of PSCs, Risk Service Contracts, PSAs, Petroleum Concession Agreements, EOR PSCs and other permutations. Having been held in more than 40 cities across the globe, with Singapore, London and Houston as anchor venues annually, it has trained over 2500 upstream executives, negotiators, finance and legal managers, the world over and consistently retained its status and renown as the
world’s best-selling and most authoritative course on the subject of production sharing contracts.

Past Participating Companies

Addax Petroleum * Afren Resources * Agip KCO * Anadarko * Apache Corporation * Autoridade National do Petroleo * Adnoc * Attorney General’s Chambers * BF International * BG Exploration * BHP Billiton * Beach Energy * Bounty Developments * BPMIGAS * Brunei National Petroleum * Cairn Energy * Chevron * Clifford Chance * Continental Energy * CH Mutiara Petroleum * ConocoPhillips * CLJOC * Daleel Petroleum * Dana Petroleum * DNO International * Dolphin Energy * Directorate General of Hydrocarbons * Eni * Exxon Mobil * GCM Global Energy * Genting Oil & Gas * Genting Oil Natuna * Genting Sanyen * Griffiths Energy * Hess Corporation * Hoang Long Hoan Vu * Joint Operating Co * Japan Vietnam Petroleum Co * JP Morgan * JX Nippon Oil & Gas Consulting Services * Japan Petroleum Exploration Co * Inpex Corporation * Korea Gas Corporation * Krisenergy * Kuwait Foreign Petroleum Exploration Co * Kuwait Petroleum Corporation and more

Special fees are available for group attendance.  This course can also be arranged as an in-company program.  Please get in touch with us for more information.

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Contact Us

psc@cconnection.org
+65 6338 0064
+65 6338 4090

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