Production Sharing Contracts Module 1 & 2, Singapore

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

Location: Singapore

Venue: Hotel Jen, Tanglin, Singapore (Check The Map)

Starts: 03 Sep 2018

Ends: 07 Sep 2018

Type: Course

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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

Daniel Johnston

Daniel Johnston, President & Founder of Daniel Johnston & Co.

Daniel Johnston, President & Founder of Daniel Johnston & Co., is an independent financial consultant to the international petroleum industry. For the past 25 years he has worked in 44 countries working with both International Oil Companies (IOCs) and National Oil Companies (NOCs) on contract analysis and design, negotiations, disputes, and renegotiations. He has a Bachelor of Science Degree in Geology from Northern Arizona University and an M.B.A. (Finance) from the University of Texas at Austin. Daniel founded Daniel Johnston & Co., Inc. in 1985. He writes a column for the Petroleum Accounting and Financial Management Journal (Institute of Petroleum Accounting @ University of North Texas) and is author of a number of books including: International Petroleum Fiscal Systems and Production Sharing Contracts PennWell Books (1994) Economic Modeling and Risk Analysis Handbook University of Dundee (2002) Maximum Efficient Production Rate University of Dundee (2002) International Exploration Economics, Risk and Contract Analysis PennWell Books (2003). Introduction to Oil Company Financial Analysis PennWell Books (2006).

David Johnston

David Johnston, Partner, Daniel Johnston & Co.

David Johnston, is a Director with Daniel Johnston & Co., working with Governments and oil companies on upstream exploration, development, Enhanced Oil Recovery, and marginal field development contracts worldwide. His work includes contract design, economic/financial analysis, negotiations, and expert witness work. David taught courses on Economic Modeling and Risk Analysis, and International Petroleum Fiscal System Analysis and Design at the University of Dundee and has published two books through the University, Economic Modeling and Risk Analysis Handbook, and Maximum Efficient Production Rate. He has also published Introduction to Oil Company Financial Analysis (2006/2008) ˜best seller with PennWell Books, and has written a number of articles on the subjects of energy and technology. He holds a Bachelor of Science degree in Electrical Engineering from the University of Rochester, Rochester, New York.

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: – Value of Discovery Exercise – Value of Reserves-in-the-Ground Exercise – Dynamics of the Savings Index – Government Participation Analysis – Rate-of-Return System

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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

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International & Government Negotiators

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Corporate/Strategic Planners

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Policy/ Economic/Financial Analysts

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Legal Advisors & In-House Counse

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Finance Directors & Managers

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Accountants & Financial Controllers

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Tax & Finance Advisors

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Production & Reservoir Managers

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Top Management - CEO/VP/MD/GM

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LNG/Gas Supply Managers

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Commercial/Business Development/Marketing/New Business/Joint Venture Managers

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Project Economics Managers

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Operation/Scheduling & Shipping Managers

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Compliance Officers/Contract Leads

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Senior Petroleum Engineers

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Geophycisists/Geologists

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Petroleum & Mining Economists

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Software Technologists

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. More than 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. The PSC Courses have trained over 3000 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.

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.

Contact Us

psc@cconnection.org

+65 6338 0064

+65 6338 4090

Production Sharing Contracts Module 1 & 2, Singapore