3 days EAM/PSA
- Exploration and production professionals, legal personnel entering the E&P scene, service companies managers and government employees.
- To provide participants with an in-depth understanding of the concepts, mechanisms and articles of Production Sharing and Joint Operating Agreement.
- Upon completion of the course, participants will be able to:
- identify the main concepts, principles and articles of a Production Sharing Agreement which contractually binds petroleum companies with a ministry and/or a state oil company,
- evaluate the management of Petroleum Exploration and Production partnerships to successfully find and produce hydrocarbons,
- discuss the practical aspect of contracts: identifying key issues, understanding constraints and deadlines, getting familiar with the document.
- Basic knowledge of the contractual environment of E&P.
Ways and means
- Case studies.
- Exercises on Production Sharing Contracts.
- Analysis of Joint Operating Agreements.
- Examples of petroleum laws & fiscal regimes around the world.
PRODUCTION SHARING AGREEMENTS (PSA) 1 day
- Origins, concept and scope of the PSA.
- Comparison of PSA to other contracts.
- Contents and structure of a typical PSA.
- PSA mechanisms
- Cost oil, profit oil split, “Government Take”.
- Bonuses, first tranche petroleum, tax holiday, cost recovery ceilings, uplifts, investment credits, government “back-in”.
- Typical PSA cash flow forecast chart.
- Case study: comparative reading of a mining law and a PSC.
MAIN ARTICLES OF AN E&P CONTRACT 1 day
- General structure of patrimonial contracts.
- Exploration phase: duration, commitments, surrender, data and information, etc.
- Appraisal phase: work program, gas provisions, commerciality, etc.
- Development phase: financing, State participation, budgets and development plans, unitization, etc.
- Production phase: work conduct and supervision, audit and accounting, financing, taxation, transportation and marketing of production, hydrocarbon price determination, etc.
- General terms & conditions: title transfer, sole risk, force majeure, local content, environmental protection, governing law and dispute resolution.
- Conclusion: Recent trends in oil taxation and patrimonial contracts.
- Real-life examples from the news.
JOINT OPERATING AGREEMENTS (JOA) 1 day
- The purpose of the joint ventures and use of a JOA.
- The relationship of the JOA to other oil industry contracts.
- Structure of a JOA, definitions and terminologies.
- The operator: appointment, rights and duties, liabilities, responsibilities, resignation, removal.
- The partners
- Rights and duties, liabilities, responsibilities.
- The operating committee and sub committees.
- Establishment, powers and duties, notices, voting procedures, impact of voting, pass-mark.
- Case study: discussing the main articles of a selected Joint Operating Agreement (JOA).