2 Modules - 5 Days
Production Sharing Contracts & International Petroleum Fiscal Systems – Module 1+2
Production Sharing Contracts
& International Petroleum Fiscal Systems
Attend The World’s Best Selling PSC Course Held in Over 40 Cities Worldwide to Critical Acclaim!
12 June 2023 to 16 June 2023, Singapore
Overview
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.
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.
The Course Offers 2 Modules Over 5 Days with Options to Attend
Module 1 for 3 Days or Module 1 + 2 for 5 Days
Course Directors
Mr Daniel Johnston
President & Founder of Daniel Johnston & Co
Mr David Johnston
Managing Director of Daniel Johnston & Co
Mr Eric Johnston
President & Director of Gearhart Companies Inc
Who Should Attend
Top Management
CEO, VP, MD, GM
Analyst
Policy, Economic, Financial, Business
Professionals
Legal, Financial, Audit, Tax, Geologist, Engineers
Corporate Executives
Policy Developers, Economist
Government
Regulators, Policy Makers
Investors
Bankers, Financial Institutions
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
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
- Introduction to Petroleum Economics & Analysis
- Cash Flow Modelling & Analysis
- Expected Value Theory
- Exploration Threshold Field Size Analysis
- Development Threshold Field Size Analysis
Plus Exercises on
- Value of Discovery Exercise
- Value of Reserves-in-the-Ground Exercise
- Dynamics of the Savings Index
- Government Participation Analysis
- Rate-of-Return-Systems
Delegates are required to bring their own laptop for Module 2.
Extensive Documentation & Research Materials as Study Aids
Module 1
- A workbook (420+ pages) with nearly 30 exercises with numerous problems that teach the practical application of petroleum fiscal system analysis. Over 200 pages of additional information and one-page summaries of the commercial terms for an additional 14 countries not found in the book. Answers to the problems and exercises are also provided.
- International Petroleum Fiscal Systems & Production Sharing Contracts (Pennwell book).
- International Exploration Economics, Risk and Contract Analysis (Pennwell book).
- Maximum Efficient Production Rate (University of Dundee).
Module 2
- An additional workbook covering the Computer-based exercises will be handed out to participants signing up for the 4th/5th day sessions.
- A spreadsheet module for performing cash flow analysis for most of the mainstream types of fiscal system will also be included as part of the course materials for the 4th/5th day sessions.
- Delegates must bring a laptop for the 4th/5th day computer-based exercise sessions. If you would like a laptop to be arranged for you, separate rental fees will apply – Contact the PSC Secretariat for details.
Programme at a Glance
- 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 ON 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
- PRODUCTION SHARING CONTRACT OUTLINE
- Introduction to Petroleum Economics and Analysis
- Cash Flow Modelling & Analysis
- Expected Value Theory
- Exploration Threshold Field Size Analysis
- Development Threshold Field Size Analysis
- Tests for progressiveness (regressiveness)
- Testing “progressive” royalties
- Value of Discovery Exercise
- Value of Reserves-in-the-Ground Exercise
- Dynamics of the Savings Index
- Government Participation Analysis
- Rate-of-return systems
