An Intensive 5-day Training Course
Oil & Gas Commercial Contracts and Negotiation Skills
Business of oil & gas is contractually and technically complex, involving enormous capital along with some risks and uncertainties. It is often...
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Course Overview
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 MHMMD Oil & Gas Commercial Contracts and Negotiation Skills 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
Training 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
Training Methodology
Participants will learn by active participation throughout the Oil & Gas Commercial Contracts and Negotiation Skills training course through the use of training course materials, oil & gas contracts, case study exercises, quizzes, training videos and discussion of business cases issues relating to different fiscal regimes in production sharing, oil concession and service contracts in their organizations. Participants will learn negotiation skills.
Organisational Impact
To understand oil & gas commercial contracts, along with its technical terms and conditions, fiscal terms and fiscal regime calculations for contractor and host government. It also presents different fiscal tools, fiscal strategies and their impact each party’s profitability. In addition, this Oil & Gas Commercial Contracts and Negotiation Skills training course offers negotiations skills to successfully complete business agreements.
Who should Attend?
- Business Development Managers seeking new opportunities in different countries
- Negotiators and Contracting Professionals
- Corporate Planning Professionals
- Professional Personnel such as legal, environmental, banking, insurance, finance and tax advisors –working on oil & gas production sharing, oil concession and Joint Venture contacts analysing suitable fiscal regimes.
- Geologists, Geophysicist, Petroleum Engineers seeking understanding of different fiscal regimes in commercial contracts
- Supply Planners and Scheduling Professionals
- Government Regulators
- Auditing Personnel
- Compliance Officers
- Equity Analyst and Bankers
- Joint Venture Officers
Training Outline
Day 1 : Introduction to Legal, Fiscal and Contractual Basics
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
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
- 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
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
Assignments and Business Case Studies
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
Assignments and Business Case Studies
Glossary and Abbreviations in Oil & Gas Downstream
ACCREDITATION
MHMMD is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
Euromatech is a Knowledge & Human Development Authority (KHDA) approved training institute in Dubai, licensed and approved to deliver training courses in the UAE.
The KHDA is the regulatory authority in the UAE, that oversees administering, approving, supervising, and controlling the activities of various education providers in the UAE. We are proud of our commitment to ensuring quality training courses and status as a KHDA-approved training provider.
Taught by our team of highly qualified trainers, our KHDA approved training courses will provide you with an enriching learning experience and practical knowledge that will help you future-proof your career and support professional development within your organisation.
The beautiful thing about learning is nobody can take it away from you.
B.B. King
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