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Negotiation of Exploration-Production Contracts

5 days EAM/EPCN
  • People who could participate in one or more stages of an EP contract negotiation: negotiators, project managers, explorers, engineers, lawyers, economists, advisors, financiers, managers from the public sector related to the energy sector and representatives of national companies
  • To have an overview of the EP patrimonial contract negotiation and to develop or deepen a skill in negotiating, using rigorous and innovative approach and proven techniques
Learning Objectives
  • Upon completion of the course, participants will be able:
  • to distinguish the characteristics of the patrimonial contracts (Concession, Production Sharing Agreement) and the contracts between oil companies (farm-in / farm-out, joint-bidding agreement, JOA)
  • to describe the different ways to access acreage
  • to use a rigorous and innovative approach, and proven techniques, for negotiating contracts
  • to make an objective and comprehensive report to its hierarchy and to anticipate objections
Ways and means
  • Simulation of a negotiation (role play where each stakeholder is played by a different team)

Reminder of contractual and fiscal framework of Exploration-Production 1 day
  • Concession, Production Sharing Agreement, Service Contracts
  • Analysis of the contract contents' analysis
  • Distribution of the different items into homogeneous “bundles”: clauses related to the exploration stage, clauses conducting operations, clauses related to economic and tax calculations, to pure legal issues, to financial terms, etc.
  • Important clauses of a contract to prepare a negotiation
Other E&P contracts 0.5 day
  • Association contracts (Joint Operating Agreement - JOA): operator, operating committee, budget, default, Sole risk, accounting procedures, etc.
  • Joint studies and submission procedures (Joint Study and Bidding Agreement - JSBA): consortium, right to be a partner, best deals, restrictions to participate in another consortium, default, etc.
  • Unitization agreement
  • Farm-in and Farm-out: assignment, obligation of profit, default, arbitration, etc.
Negotiation 0.5 day
  • Negotiation principles: methodology and techniques
  • Preparation for negotiating: principles, economic reminders, technical reminders (reserves, etc.)
Role play 2.5 days
  • Case study preparation per team (Joint Venture: JV, State)
  • Preparation for the first round of negotiation (contact and consultation)
  • First simulation and debriefing, updating the negotiation plan
  • Preparation for the second round of negotiation (confrontation and early conciliation)
  • Second simulation and debriefing, updating the negotiation plan
  • Preparation for the third round of negotiation (construction of the agreement and conclusion)
  • Third simulation and debriefing
  • Preparation of the report to the management
Reminder of economic evaluation of E&P projects 0.5 day
  • Cost of capital and discount rate, value creation
  • Economic criteria for project evaluation: net present value (NPV), internal rate of return (IRR), payback period, etc.
  • Global profitability analysis, the impact of taxation and inflation on economic indicators
2016 course calendar
Language Dates Location Tuition Register
Mar 21 - 25 Rueil €3,920 Online By email
Sep 05 - 09 Rueil €3,920 Online By email