Nicosia: 22 – 24 Oct 2019 (Mod 1)
Houston: 2 – 6 Dec 2019 (Mod 1 & 2)
The Production Sharing Contracts 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. 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.
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.
What You Will Learn
For 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?
For 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
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
Register your interest at:
https://www.cconnection.org/events/pscmodule1n2/
Email: Shaman@cconnection.org / Janice@cconnection.org
Tel: +65 6338 0064
Fax: +65 6338 4090
Conference Connection Inc