Negotiation of Exploration-Production Contracts

EAM/EPCN

Who should attend?

  • 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.
Audience :
  • 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.

Level : Proficiency

Course Content

  • REMINDER OF CONTRACTUAL & FISCAL FRAMEWORK OF EXPLORATION-PRODUCTION

      • 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

      • 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

      • Negotiation principles: methodology and techniques.
      • Preparation for negotiating: principles, economic reminders, technical reminders (reserves, etc.).
  • ROLE PLAY

      • 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.

Learning Objectives

  • 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.

Ways & Means

  • Simulation of a negotiation (role play where each stakeholder is played by a different team) allowing real-life negotiation case.