About this Training Course 

We are currently in the midst of one of the deepest downturns in the industry in recent years. Companies have to adjust to the new realities of a lower oil price and the possibly painful cost adjustment that goes with it.

When the oil price was $100 per barrel, both sides in production sharing contracts or concessionary fiscal systems were making good returns and were therefore perhaps not too concerned that fiscal structures were optimised. But things are different now.

It is essential that companies understand the finer nuances of the petroleum fiscal system to ensure they are structured optimally in this price environment.

  • What are the implications for cost recovery in this price environment?
  • Are the fiscal terms structured in a way to ensure my company gains from any cost reduction exercise it undertakes
  • What the entitlement reserve bookings looking like for year end?
  • As an IOC (International Oil Company), is now the time to negotiate new terms with the government? How do we do it? As an NOC (National Oil Company) should I be looking at negotiating a carry to reduce capital exposure?

By the end of this course, participants will be able to:

  • Learn about the history, evolution and structure of fiscal systems
  • Investigate cost recovery and profit sharing in a PSC
  • Understand the interaction with royalties
  • Examine fiscal mechanisms and ring fence calculations
  • Identify taxation liability and allowances
  • Design and optimize a fiscal system in a competitive bid scenario….and argue the case!
  • Construct a production sharing contract spreadsheet model
  • Interpret model outputs to enhance investment decision making
  • Understand petroleum economic fundamentals to aid PSC negotiations and licence round bidding

 

This five day practical course is an ideal course for delegates wishing to develop a deeper understanding of petroleum fiscal systems and the economic principles that underpin them. Delegates should have a reasonable knowledge of Microsoft Excel ™ and bring a laptop loaded with Microsoft Office™ to the course.

Typical course participants are likely to be:

  • Production Sharing Partners
  • Economists working in the industry
  • Lawyers involved in the industry
  • Analysts working in the industry
  • Auditors working in the industry
  • Technical personnel working in the industry
  • Business Development and Commercial Managers

Delegates will be provided with electronic copies of all workshop solutions and examples, and a comprehensive hard copy course manual.

This course will enable delegates to answer the above questions and many more!

It explores the structure and mechanisms of production sharing contracts (PSC’s), concessionary tax/royalty systems, and risk service contracts  and includes the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements. This course brings the theory to life, allowing course attendees to design their own fiscal system and build and interpret their own PSC model based on a real life field development.

Very good course for non-economists for understanding the basics of Petroleum Economics & PSCs

Executive Analyst, PETRONAS

Great course, has opened up my eyes and share a lot of light on many “grey areas” of my knowledge of the industry

Legal Executive, Brunei National Petroleum Company

The course was an ideal introduction to the economics that drive the upstream Petroleum decision making process and the external influences that can impact upon these decisions

Middle East & Asia Pacific Regional Accounting Centres Director, Baker Hughes