/  Commercial Contracts in Oil and Gas and Negotiation Skills Training

Commercial Contracts in Oil and Gas and Negotiation Skills Training

BMC Training provides a training course in Commercial Contracts in Oil and Gas and Negotiation Skills in Oil and Gas Training

Course Title
Venue
Start Date
End Date
  • Istanbul
    15 - 11 - 2020
    19 - 11 - 2020
  • Bali
    15 - 11 - 2020
    19 - 11 - 2020
  • Singapore
    15 - 11 - 2020
    19 - 11 - 2020
  • Washington
    15 - 11 - 2020
    19 - 11 - 2020
  • Dubai
    22 - 11 - 2020
    26 - 11 - 2020
  • Paris
    22 - 11 - 2020
    26 - 11 - 2020
  • Hong Kong
    22 - 11 - 2020
    26 - 11 - 2020
  • Dubai
    1 - 11 - 2020
    5 - 11 - 2020
  • Paris
    1 - 11 - 2020
    5 - 11 - 2020
  • Hong Kong
    1 - 11 - 2020
    5 - 11 - 2020
  • Kuala Lumpur
    8 - 11 - 2020
    12 - 11 - 2020
  • Rome
    8 - 11 - 2020
    12 - 11 - 2020
  • Barcelona
    8 - 11 - 2020
    12 - 11 - 2020
  • Zurich
    8 - 11 - 2020
    12 - 11 - 2020
  • London
    22 - 11 - 2020
    26 - 11 - 2020
  • Madrid
    22 - 11 - 2020
    26 - 11 - 2020
  • Munich
    22 - 11 - 2020
    26 - 11 - 2020
  • Berlin
    22 - 11 - 2020
    26 - 11 - 2020
  • New York
    22 - 11 - 2020
    26 - 11 - 2020
  • London
    20 - 12 - 2020
    24 - 12 - 2020
  • Madrid
    20 - 12 - 2020
    24 - 12 - 2020
  • Munich
    20 - 12 - 2020
    24 - 12 - 2020
  • Berlin
    20 - 12 - 2020
    24 - 12 - 2020
  • New York
    20 - 12 - 2020
    24 - 12 - 2020
  • Dubai
    27 - 12 - 2020
    31 - 12 - 2020
  • Paris
    27 - 12 - 2020
    31 - 12 - 2020
  • Hong Kong
    27 - 12 - 2020
    31 - 12 - 2020
  • Istanbul
    13 - 12 - 2020
    17 - 12 - 2020
  • Bali
    13 - 12 - 2020
    17 - 12 - 2020
  • Singapore
    13 - 12 - 2020
    17 - 12 - 2020
  • Washington
    13 - 12 - 2020
    17 - 12 - 2020
  • Kuala Lumpur
    6 - 12 - 2020
    10 - 12 - 2020
  • Rome
    6 - 12 - 2020
    10 - 12 - 2020
  • Barcelona
    6 - 12 - 2020
    10 - 12 - 2020
  • Zurich
    6 - 12 - 2020
    10 - 12 - 2020

Introduction

Business of oil & gas is contractually and technically complex, involving enormous capital along with some risks and uncertainties. It is often significantly influenced by geopolitical events.

In this training course you will study:

  • The basics of oil & gas exploration, production, and the oil and gas recovery economics to fully understand the business and the essential contracting terms
  • The various types of petroleum contracts and their key attributes, along with the contracting parties’ roles and responsibilities
  • The rights and obligations of all parties concerned such as national oil companies, international oil companies and the host government
  • The wide-ranging financial tools used in the oil and gas industry contracts are evaluated along with the fiscal strategies that impact each party’s profitability
  • How these profitability considerations provide incentives for investment and re-investment throughout various stages of oil & gas exploration and production
  • How the understanding of negotiations skills, avoiding conflicts, and effectively preparing for negotiations, helps in concluding successful agreements

Objectives

  • Gain broad perspective of what are the essential factors in oil and gas business
  • Enhance your understanding of the fundamentals of oil & gas law, and the commercial contracts
  • Evaluate the technical, commercial, and financial aspects of oil & gas contracts and their impact on the profitability
  • Confidently discuss the technical terms, concepts and buzzwords with your peers and clients
  • Master the negotiations skills, lead and influence business agreements towards successful contracts

Course Outlines

Day 1 : Introduction to Legal, Fiscal and Contractual Basics

Crude Oil & Gas

  • The Oil Industry Streams
  • Demand Drivers for Crude Oil
  • Drilling Contracts – Contract Alternatives

Legal Fiscal and Contractual Framework Ownership

  • Oil and Gas Rights and Ownership – The Ad Coelom Doctrine
  • The Rule of Capture
  • A rule of “No liability”
  • Limitations to Rule of Capture
  • Theories of Ownership – Escaped Hydrocarbons
  • Drainage by Enhanced-recovery Operations
  • Doctrine of Correlative Rights
  • Conservation Laws – Drilling Wells
  • Conservation Laws – Fair Share Doctrine
  • Function of Oil and Gas Conservation Laws
  • Well-Spacing Rules

Day 2 : Introduction to Contracts

Kinds of Oil and Gas Interests

  • Fee Interest
  • Mineral Interest
  • Leasehold Interest
  • Surface Interest
  • Royalty Interest
  • Production Payment
  • Carried Interest
  • Other Interests

Key Stages of Petroleum Projects in View of Contracts

  • Explore to find it in the first place;
  • Develop the infrastructure to remove oil & gas from ground;
  • Produce (and sell) the oil & gas you have found;
  • Abandon the wells and protect the environment when it runs out and clean up (“decommission”)

What is a Petroleum Contract

  • Need for Collaboration between parties
  • What is a Petroleum Contract?
  • Host Government Contract
  • Petroleum Fiscal Regime defined
  • Petroleum contracts under different regimes
  • Awarding or winning contracts
  • Types of Petroleum Contracts and their Key Attributes
  • Upstream Project Agreement
  • Host Government Take
  • An example of Concessionary System’s Cash Flow
  • Optimal Government Take
  • PSC – Cash Flow Distribution
  • PSC – CF Distribution Example – Year N+1
  • Comparison of Fiscal Systems
  • Flexible Fiscal Regimes
  • Why Dynamic Terms are used in Contracts
  • Joint Ventures and Other Combinations

Day 3 : Roles, Responsibilities and Fiscal Tools

Dissection of Petroleum Contracts

  • The document follows the events of project
  • Order and Disorder in the Clauses

Parties Roles and Responsibilities in Petroleum Contracts

  • The General Framework of parties involved
  • National Oil Company Multiple roles
  • International Oil Company Role
  • Grants of Rights to a party – Contractor and Host Government
  • Rights and Obligations of Host Government
  • Addressing important operational issues in the contract
  • Contract Area or Block
  • Time periods in contracts
  • Minimum Work Obligations in Exploration Phase
  • Relinquishment of Unused Area to Government
  • Discovery, Appraisal, Declaration of Commerciality and Development
  • Post Commercial Discovery –  A Field development Plan
  • Annual Work Programs & Budgets – Petroleum Contracts
  • Joint Management – Petroleum Contracts
  • Deadlock – Petroleum Contracts

The Financial Considerations in Petroleum Contracts – Fiscal Tools

  • Tools for Concessions, Production Sharing Contract and Participating Agreements
  • Signature Bonus
  • Production Bonus
  • Rental
  • Royalty – Fixed Royalty, Sliding Royalty, &  Royalty Determination Point
  • Payment in Cash or In Kind
  • Corporate Income Tax and Ring Fencing
  • Profit Sharing
  • Production Sharing – Contract’s  & Government share
  • Fixed Profit Oil Shares
  • Sliding Scale Profit Sharing
  • Cost Oil
  • State Participation  – A Fiscal Tool in PSC

Day 4 : Strategies and Solutions

Fiscal Strategies and Solutions

  • Intro to Fiscal Strategies and Solutions in PSC
  • Strategies for State to meet their Profitability
  • The 4 Key Questions that Defines the Strategy
  • The Changing Profitability –  Due to Prices, Costs, Production Rates
  • Understanding the Regressive, Neutral & Progressive Fiscal Tools
  • Approaches to Profitability
  • Profitability And The Fiscal Tools
  • Timing of Petroleum Revenues – Fiscal Tools
  • Risk for The State – Fiscal Tools
  • State Participation as a Co-Investor
  • Encouraging Investment and Re-Investment
  • The Shift to Unconventional Oil & Gas

Gas and LNG Contracts

  • The Distinct Characteristics
  • Liquefied Natural Gas Business
  • Liquefied Natural Gas – Contracts
  • Gas Sales and Transportation Contracts
  • Gas Transportation Tariffs
  • Gas Sales Agreements – Terms & Quantity
  • LNG Sales And Purchase Agreements
  • General Economics for Gas Exploration & Development

Day 5 : Negotiations Skills

Art and Science of Negotiations Skills

  • What is negotiation?
  • Understanding relations between conflicts and negotiations
  • Identify key roles and responsibilities of negotiating team
  • Preparing for negotiations
  • Implement an effective negotiations process
  • Understanding key success bargaining factors
  • Concluding the negotiations

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