A 3-day PSC Virtual Course

6 Modules of 2 Hours Each
9.00AM to 11.00AM, USA CST and 11.30AM to 1.30PM, USA CST

Location: Virtual

Venue: N.A.

Starts: 11 Nov 2020

Ends: 13 Nov 2020

Type: Virtual

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The Production Sharing Contracts & International Petroleum Fiscal Systems virtual course led by Daniel Johnston & Co, provides the full cycle of petroleum operations from exploration and appraisal through development, production and site restoration.

Delivered over 6 modules of 2 hours each, the modules encompass the full range of subjects and concepts associated with petroleum fiscal system analysis and design, governing business relationships between oil companies and governments. Attendees will have the option of attending any one or multiple modules.

Delegates attending the modules will leave the course with the confidence of a complete understanding of the subjects, as the modules have been specially curated to provide key economic, financial and accounting issues associated with the variety of systems and contracts that exist worldwide in the petroleum industry.

11 – 13 November 2020
2 Sessions per day
9.00AM to 11.00AM USA CST
11.30AM to 1.30PM USA CST

Six Key Modules Providing State-of-the-Art Techniques in Fiscal System Analysis & Design (bookable as individual or multiple modules)

+ Module 1: Introduction - PSCs & Royalty Tax Systems

Introduction – PSCs & Royalty Tax Systems

11 November 2020, 9.00am to 11.00am USA CST

  • History of fiscal system designs
  • Legal and Philosophical Characteristics
  • Key metrics


+ Module 2: Sliding Scales

Sliding Scales

11 November 2020, 11.30am to 1.30pm USA CST

  • Definitions
  • Mechanisms (ROR, “R” Factors, others)
  • Windfall Profits Taxes


+ Module 3: Allocation & Licensing

Allocation & Licensing

12 November 2020, 9.00am to 11.00am USA CST

  • Approaches (Auctions, Negotiations, etc.)
  • Prequalification dynamics
  • Recent trends


+ Module 4: Indonesian Gross Split Design

Indonesian Gross Split Design

12 November 2020, 11.30am to 1.30pm USA CST-

  • Gross Split Approach
  • Indonesia Gross Split design elements
  • Analysis of Indonesian Gross Split system


+ Module 5: Back of the envelope calculations

Back of the Envelope Calculations

13 November 2020, 9.00am to 11.00am USA CST

  • Government take
  • Effective Royalty Rate
  • Savings Index (undiscounted)
  • Evaluating sliding scales
  • Lifting entitlement ‘booking barrels’
  • Tools for auditing economic models

+ Module 6: Economic Modelling & Discounted Cash Flow Analysis

Economic Modelling & Discounted Cash Flow Analysis

13 November, 11.30am to 1.30pm USA CST

  • Basics of Discounted Cash Flow Models
  • Factoring time value of money into the analysis
  • Test for Gold Plating
  • Savings Index (discounted cash flow)
  • Effective Royalty Rate (discounted)
  • Basic rules and procedures for DCF analysis
  • Analysis of key fiscal mechanisms
  • Modelling of specific country regimes

Register for all 6 modules now

11 – 13 November 2020
2 Sessions per day
9.00am to 11.00am USA CST and
11.30am to 1.30pm USA CST

Key Learning Outcomes for the Modules

You will:-

  • Learn about different fiscal system designs and their key elements
  • Learn to ‘speak the language’ of international deal-making and negotiations
  • Analyse different fiscal mechanisms and their impact on cash flow


  • Compare PSC and Royalty Tax (Concession) designs
  • Understand drivers behind fiscal system designs and taxation policy choices
  • Evaluate key economic metrics for various system designs
  • Achieve familiarity with strengths and weaknesses of different design choices

Attend the 6 Modules to Gain a Detailed Assessment of:-

  • The evolution of fiscal system designs
  • Progressive and Regressive Mechanisms
  • ROR, R-Factor, IM and other sliding scales
  • Recent trends in allocation, prequalification
  • Work Program Bidding
  • Relinquishment dynamics
  • Indonesian and other Gross Split Approaches
  • Economic metrics (e.g., Government Take, Effective Royalty Rate, Savings Index
  • Comparative Analysis of Fiscal Systems
  • Economic modelling techniques

Course Directors (At least one Course Director per module)

With guest presentations, Q&A & Discussions by Daniel Johnston

Daniel Johnston

President & Founder of Daniel Johnston & Co.

Daniel Johnston has over 40 years experience in the international sector conducting oil and gas reserve certifications, field development feasibility studies, evaluating exploration potential of licenses and concessions, providing expert testimony, and working with both International Oil Companies (IOCs) and National Oil Companies (NOCs) or Oil Ministries on contract analysis and design, joint operating agreements, farm-in/farm-out agreements, purchase-sale-agreements, negotiations, disputes, mediations and renegotiations.

He has a Bachelor of Science Degree in Geology from Northern Arizona University, with minors in Mathematics and Meteorology and an MBA (Finance) from the University of Texas at Austin.

He has published numerous books and articles and he lectures on the subjects of: Economics and Risk Analysis, Petroleum Fiscal System Analysis and Design, and Financial Analysis.

He is one of the co-founders of the Journal of World Energy Law and Business (JWELB) published by the Association of International Petroleum Negotiators (AIPN) and the Oxford University Press (UOP). The first issue was published in March, 2008.

Since 1985 he has performed forensic analysis and/or provided expert testimony in over 50 disputes in over 30 countries involving contract interpretation issues, economic, financial and accounting matters, industry standards and practices, contract interpretation, and damages or compensation assessment.


Who Should Attend

International & Government Negotiators

Corporate/Strategic Planners

Policy/Economic/Financial/Business & Accounting Analysts

Legal Advisors & In-House Counsel

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

LNG/Gas Supply Mgrs

Finance Directors & Mgrs

Accountants & Financial Controllers

Tax & Finance Advisors

Loan Officers

Production & Reservoir Mgrs

Project Economic Mgr

Compliance Officers/Contract Leads

Operation/Scheduling & Shipping Mgrs


Senior Petroleum Engineers

Petroleum & Mining Economists


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This course modules can be booked individually or as multiple modules.

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+65 6338 0064
+65 6338 4090

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