Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures

INTRODUCTION
Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures training course provides in-depth information on the types of upstream petroleum contracts and what their differences are and what are the main contractual terms participants need to know in order to fully understand all types of Upstream Petroleum Contracts. This Contracts Management training course will comprehensively cover Production Sharing Contracts, Exploration & Production Agreement (E&P) Exploration & Exploitation Contract, License Agreement, and participants will take away essentials elements of these contracts to be effectively used in their own companies. The training course will help participants understand the practical issues involved and the pitfalls to avoid.

OBJECTIVES
At the end of this training course, you will learn to:
• Gain a full understanding of the different types of the Upstream Petroleum Contracts
• Understand the main contractual terms and their differences between the various types of contracts from PSA, Service contracts and others
• Be aware of the approaches to negotiation of these contracts
• Incorporate the best terms into these Upstream Petroleum Contracts
• Develop an understanding of the accounting and auditing standards, policies and practices used by Upstream Petroleum companies

COURSE OUTLINE
DAY 1
• Brief Overview of the O&G Industry
• Oil and Gas Terminology
• The Legal Framework to Upstream Contracts
• Introduction to Contract Formation
• Key Oil and Gas Terminology
DAY 2
• Ownership and Exploitation of Reserves
• The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
• Characteristics of Upstream Contracts
• Host Country’s Legal and Regulatory Framework and Fiscal Regime – Stabilization
• Host Government‘s Role in Upstream (Exploration & Production (E&P)) Agreements

DAY 3
• Commercial Terms in Licensing and Concession Agreements
• Fiscal Arrangements, License Fees
• Five Key Financial Aspects to a PSC
• PSC – Cash Flow Distribution
• PSC – CF Distribution Example – Year N+1

DAY 4
• Participation Agreements (Farm-in and Farm-out)
• Agreements for Farm-ins and Farm-outs
• Nature of the Farm-out
• Subject Matter of the Farm-out
• Interest Assigned and Reserved
• Assignment of Interest

DAY 5
• Government Take
• Production Share and Cost Recovery
• Local Content
• Force Majeure
• Dispute Resolution
• Stabilization and Renegotiation Provisions
• Negotiation Simulation Exercise