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Modern Upstream Oil & Gas Contracts and World Fiscal Systems

Who should attend: 
  • Personnel involved directly or indirectly with oil, gas and LPG exploration, refining, trading and marketing operations.
  • Petroleum Negotiators, Engineers, Planners, Economists
  • Geologists, Chemical Engineers & Other Engineers
  • Lawyers, Bankers, Accountants, Financial Analysts
  • Senior Management, etc
4 days
Course aims: 

This course provides participants with a comprehensive overview of the oil & gas issues relating to World Oil & Gas Fiscal Systems & Analysis of Exploration & Production Contracts.

 

It will provide participants with tools in negotiating better contracts and concessions, identifying the best investment opportunities and gaining practical, up-to-date experience from “real life” examples.
Course outline: 
  • Geopolitical and historical background to modern E & P petroleum agreements. Sovereignty, the state and the petroleum resource.
  • Ownership issues: English Common Law versus Domainial
  • Development of the Equity (Royalty-Tax, Concession) petroleum agreement and the Contractor Agreement (Production Sharing).
  • Other types of petroleum agreement (Iranian Buy-Back, Joint Venture, Nigeria, Gabon, Algeria, USA, China, Thailand, etc).
  • Ten key issues in petroleum legislation.
  • The State Oil Company, SOC, and the government Petroleum Licensing and Monitoring Unit, PLMU.
  • The Discretionary versus Auction systems of petroleum licensing: the advantages and drawbacks.
  • Petroleum leases, concessions, agreements and contracts.
  • The modern Equity Agreement.
  • European practice in petroleum licensing.
  • What rights are awarded?
  • The rights, duties, liabilities, obligations of the Host Government and of the IOCs. Term, Acreage and Consideration.
  • Contractor Agreement (Production Sharing) and State Oil Company.
  • Modern developments in petroleum contractual practice - Iranian Buy-Back Agreement and its impact on the world of petroleum
  • Fiscal issues in petroleum agreements: CAPEX and OPEX: the fundamentals, IOC rates of return, state/IOC take , international tax rates and a summary of other imposts and financial issues.
  • Royalty-Tax-Additional Profits Taxes&.
  • Cost and Profit Contractor Agreement (Production Sharing)&
  • Rate of Return based fiscal scheme and its fiscal mechanism
  • International oil industry and worldwide fiscal/ legal competitiveness.
  • Major and minor technical, legal and financial issues in negotiations.
  • The Government negotiating team and the IOC negotiating team.
  • The conduct of negotiations
  • Some negotiating tactics and strategies.