4 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, 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 methodology and innovative approach.
- Upon completion of the course, participants will be able to:
- describe the different ways to access acreage,
- use a rigorous methodology and innovative approach for upstream contracts negotiation,
- make an objective and comprehensive report to their management and anticipate objections.
- Basic knowledge of the contractual environment of E&P.
Ways and means
- Simulation of a negotiation (role play where each stakeholder is played by a different team) allowing real-life negotiation case.
REMINDER OF CONTRACTUAL & FISCAL FRAMEWORK OF EXPLORATION-PRODUCTION 0.5 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.
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.
NEGOTIATION SKILLS 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 and presentation.