This intensive five-day training course provides a comprehensive understanding of the legal, commercial, and strategic aspects of petroleum exploration and production contracts. Participants will gain in-depth knowledge of the various contractual frameworks governing the upstream petroleum sector, from licensing and concession agreements to production sharing contracts and joint operating agreements. The course will equip attendees with the skills necessary to navigate the complexities of negotiating, drafting, and managing these critical agreements.
The curriculum will cover essential topics including the lifecycle of petroleum agreements, key legal and fiscal terms, risk allocation, environmental considerations, local content requirements, and dispute resolution mechanisms. Through a blend of theoretical learning, case studies, and practical exercises, participants will develop a strong foundation in the principles and practices of international petroleum contract management.
Who should attend the training
- Legal advisors in oil and gas companies
- Commercial managers and negotiators
- Government officials involved in petroleum licensing and regulation
- Finance professionals in the energy sector
- Geologists and engineers involved in project development
- Business development managers
- Investment analysts focusing on the oil and gas industry
- Professionals new to the petroleum sector
- Contract administrators and managers
Objectives of the training
- To provide a thorough understanding of the different types of petroleum exploration and production contracts
- To equip participants with the knowledge to identify and analyze key legal and commercial terms in petroleum agreements
- To enhance skills in negotiating and drafting petroleum contracts
- To understand the principles of risk allocation and management in the upstream sector
- To provide insights into fiscal regimes and their impact on project economics
- To examine environmental regulations and local content requirements in petroleum contracts
- To explore dispute resolution mechanisms relevant to the oil and gas industry
- To analyze case studies of international petroleum agreements
- To develop practical skills in contract management and administration
- To foster a comprehensive understanding of the strategic implications of petroleum contracts
Personal benefits
- Enhanced understanding of the complexities of petroleum exploration and production contracts
- Improved skills in negotiation, drafting, and management of oil and gas agreements
- Increased confidence in dealing with legal and commercial aspects of the upstream sector
- Broader perspective on the strategic implications of different contractual frameworks
- Greater ability to identify and mitigate potential risks in petroleum ventures
- Enhanced career prospects in the international petroleum industry
- Networking opportunities with professionals from diverse backgrounds in the sector
- Deeper insights into the economic and regulatory drivers shaping petroleum contracts
- Ability to contribute more effectively to contract development and management within your organization
- Professional development and recognition in a specialized field
Organizational benefits
- Improved capacity within the organization to effectively negotiate and manage petroleum contracts
- Reduced risk of legal disputes and financial losses due to poorly structured agreements
- Enhanced understanding of fiscal terms leading to better investment decisions
- Stronger compliance with environmental regulations and local content requirements
- More efficient contract administration and management processes
- Increased success rates in securing favorable petroleum agreements
- Improved collaboration between technical, commercial, and legal teams
- Better strategic planning and decision-making in upstream petroleum ventures
- Enhanced reputation as a knowledgeable and competent player in the industry
- Development of in-house expertise on petroleum contract management
Training methodology
- Interactive lectures and presentations
- Case studies and real-world examples
- Group discussions and knowledge sharing
- Practical session: Contract negotiation simulations
- Practical session: Drafting key clauses of a petroleum agreement
- Practical session: Risk allocation exercises
- Practical session: Fiscal regime analysis
- Practical session: Environmental and local content compliance strategies
- Question and answer sessions
Trainer Experience:
Our trainers are seasoned professionals with extensive international experience in the petroleum exploration and production sector. They possess in-depth legal, commercial, and technical expertise, having worked with major oil and gas companies, governments, and international law firms. Their practical insights and real-world case studies ensure a highly relevant and engaging learning experience.
Quality statement:
This training course is designed and delivered to the highest standards of quality, ensuring participants receive up-to-date, practical, and comprehensive knowledge of petroleum exploration and production contracts. We are committed to providing an engaging and interactive learning environment that fosters understanding and skill development.
Tailor-made courses:
We offer tailor-made versions of this course to meet the specific needs and objectives of your organization. The content, duration, and focus can be adjusted to address your particular operational context, regional regulations, and training requirements. Contact us to discuss your customized training solutions.
Course duration: 5 days
Training fee: USD 1300
Module 1: Overview of Petroleum Exploration and Production Agreements
- The petroleum lifecycle and the role of contracts
- Different types of upstream petroleum agreements: Licensing, Concession, Production Sharing Contracts (PSCs), Joint Operating Agreements (JOAs), Service Contracts
- Evolution of petroleum contracts and global trends
- Key stakeholders in petroleum agreements: Governments, National Oil Companies (NOCs), International Oil Companies (IOCs), Investors
- Practical session: Identifying and classifying different examples of petroleum contracts based on their key characteristics
Module 2: Key Legal and Regulatory Frameworks
- Sovereignty over natural resources and host government rights
- International law principles relevant to petroleum agreements
- National petroleum laws and regulations: Licensing regimes, environmental laws, local content regulations
- Stability clauses and their significance
- Dispute resolution mechanisms in petroleum contracts: Arbitration, litigation
- Practical session: Analyzing a host government's petroleum law and identifying key regulatory requirements
Module 3: Fiscal Regimes in Petroleum Contracts
- Overview of petroleum fiscal systems: Royalties, taxes, profit sharing
- Production Sharing Contract (PSC) fiscal terms: Cost recovery, profit oil/gas sharing, tax obligations
- Concession/License fiscal terms: Royalties, income tax, other levies
- Economic modeling and fiscal term analysis
- Impact of fiscal terms on project economics and investor returns
- Practical session: Calculating government take and contractor share under different fiscal scenarios
Module 4: Key Commercial Terms and Negotiations
- Contract area, exploration period, appraisal and development phases
- Production period, extensions, and relinquishment
- Work obligations and minimum work programs
- Production sharing and allocation principles
- Pricing mechanisms for crude oil and natural gas
- Practical session: Participating in a simulated negotiation of key commercial terms for an exploration license
Module 5: Risk Allocation and Liability
- Identifying and assessing risks in petroleum exploration and production
- Contractual mechanisms for risk allocation: Indemnities, insurance, liability clauses
- Force majeure and its implications
- Change of law provisions
- Unitization and joint development of shared reservoirs
- Practical session: Analyzing risk allocation clauses in a sample Joint Operating Agreement
Module 6: Environmental Considerations and Sustainability
- Environmental impact assessments and management plans
- Decommissioning and abandonment obligations
- Liability for environmental damage
- Sustainable development principles in petroleum operations
- International environmental standards and best practices
- Practical session: Developing an environmental management plan for a hypothetical petroleum project
Module 7: Local Content and Socio-Economic Impact
- Rationale and objectives of local content policies
- Key elements of local content requirements: Employment, training, procurement, technology transfer
- Monitoring and enforcement of local content obligations
- Socio-economic impact assessments of petroleum projects
- Community engagement and social responsibility
- Practical session: Developing a local content plan for a petroleum development project
Module 8: Joint Operating Agreements (JOAs)
- Purpose and structure of JOAs
- Participating interests and operator responsibilities
- Management committee and decision-making processes
- Operating procedures and work programs
- Budgeting, accounting, and auditing under a JOA
- Practical session: Analyzing the key provisions of a standard Joint Operating Agreement
Module 9: Production Sharing Contracts (PSCs) in Detail
- Evolution and variations of PSCs
- Exploration phase obligations and cost recovery
- Development and production phases: Cost recovery and profit sharing mechanisms
- Management committee and operating committees under a PSC
- Termination and abandonment provisions in PSCs
- Practical session: Comparing and contrasting different models of Production Sharing Contracts
Module 10: Contract Management and Dispute Resolution
- Contract administration and compliance
- Monitoring performance and ensuring obligations are met
- Amendments, assignments, and transfers of interest
- Breach of contract and remedies
- Negotiation, mediation, and arbitration of disputes
Practical session: Developing a strategy for resolving a hypothetical contractual dispute in the petroleum sector
Requirements:
Participants should be reasonably proficient in English.
Applicants must live up to Armstrong Global Institute admission criteria.
Terms and Conditions
1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free
2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.
3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.
4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.
5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.
Booking for Training
Simply send an email to the Training Officer on training@armstrongglobalinstitute.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.
Or call us on +254720272325 / +254725012095 / +254724452588
Payment Options
We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:
1. Groups of 5 People and Above – Cheque Payments to: Armstrong Global Training & Development Center Limited should be paid in advance, 5 days to the training.
2. Invoice: We can send a bill directly to you or your company.
3. Deposit directly into Bank Account (Account details provided upon request)
Cancellation Policy
1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.
2. Participants may cancel attendance 14 days or more prior to the training commencement date.
3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.
Tailor Made Courses
This training course can also be customized for your institution upon request for a minimum of 5 participants. You can have it conducted at our Training Centre or at a convenient location. For further inquiries, please contact us on Tel: +254720272325 / +254725012095 / +254724452588 or Email training@armstrongglobalinstitute.com
Accommodation and Airport Transfer
Accommodation and Airport Transfer is arranged upon request and at extra cost. For reservations contact the Training Officer on Email: training@armstrongglobalinstitute.com or on Tel: +254720272325 / +254725012095 / +254724452588
