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Production Sharing & Joint Operating Agreements

Production Sharing & Joint Operating Agreements

3 days
EAM/PSA
Sessions
This course is not scheduled.
Who should attend?

Audience

    • Exploration and production professionals, legal personnel entering the E&P scene, service companies managers and government employees.

Level

  • Proficiency
  • To provide participants with an in-depth understanding of the concepts, mechanisms and articles of Production Sharing and Joint Operating Agreement.
Learning Objectives
  • 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.
Course Content

PRODUCTION SHARING AGREEMENTS (PSA)

1 day

  • Introduction
  • 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

  • Introduction
  • 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).
Ways & Means
  • Case studies.
  • Exercises on Production Sharing Contracts.
  • Analysis of Joint Operating Agreements.
  • Examples of petroleum laws & fiscal regimes around the world.