Production Sharing Contracts Module 1

This 3-day course provides you with critical information to create the right commercial framework for successful PSC negotiations

Location: Nicosia, Cyprus

Venue: Nicosia, Cyprus (Check The Map)

Starts: 22 Oct 2019

Ends: 24 Oct 2019

Type: Course

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

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.

 

Course Outlines- 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

Course Director

*At least one course director per venue.

Module 1

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. PSCs in over 45 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.

WHAT YOU WILL LEARN:
Detailed Assessment of Worldwide Fiscal Systems 
Get a detailed assessment of worldwide fiscal systems, industry metrics, trends and variations in:

  • 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

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

Media Sponsor

Testimonials

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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