Upstream Petroleum Contracts, Accounting, Auditing Policies and Procedures
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Upstream Petroleum Contracts, Accounting, Auditing Policies and Procedures Course
Introduction:
This comprehensive training course offers participants a deep understanding of the various types of upstream petroleum contracts, highlighting their differences and key contractual terms. By attending this course, participants will gain the knowledge necessary to fully comprehend different Upstream Petroleum Contracts and their implications.
Throughout the training, participants will receive in-depth information on the main types of contracts used in the upstream petroleum industry, including Production Sharing Contracts, Exploration & Production Agreements (E&P), Exploration & Exploitation Contracts, and License Agreements. The course will cover the essential elements of these contracts, empowering participants to effectively analyze and interpret them within their own companies.
By exploring real-world case studies and practical examples, this training course will provide participants with a comprehensive understanding of the practical issues involved in upstream petroleum contracts. It will also highlight common pitfalls and challenges that participants should be aware of and avoid.
Participants will develop a solid understanding of the contractual terms and provisions that are crucial to successful contract negotiation and management in the upstream petroleum sector. This includes topics such as contract duration, rights and obligations of the parties, cost recovery mechanisms, profit sharing arrangements, dispute resolution procedures, and more.
By the end of the course, participants will have gained the necessary knowledge and insights to navigate upstream petroleum contracts with confidence. They will be equipped with practical tools and strategies to effectively analyze, negotiate, and manage these contracts within their own organizations.
Join us in this training course to enhance your understanding of upstream petroleum contracts and acquire the essential skills to effectively navigate the intricacies of these agreements. By gaining a comprehensive understanding of the different contract types and their key elements, participants will be better equipped to make informed decisions, mitigate risks, and maximize value in the upstream petroleum industry.
Course Objectives:
By the end of this course, participants will be able to:
- Gain a full understanding of the different types of 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 the 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
- Improve the relevance and reliability of financial reports to better meet the needs of users
- Review and use publicly available information for benchmarking the business performance
- Understand the role and function of an Internal Audit Department
- Understand audit risk and efficiently plan, control and record an audit assignment
Who Should Attend?
This training course is suitable for a wide range of professionals but will greatly benefit:-
- Senior contract negotiators and managers
- Legal managers, legal counsel
- Commercial and business managers
- Contracts administrators, and managers
- Commercial, financial, and insurance professionals
- Project and General Management personnel
- Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
- Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
- Joint Venture Accountants and Auditors
- External, Financial and Internal Auditors
- Government Regulators and Auditors
- Financial and Investment Analysts
Course Outlines:
Introduction and Overview of Upstream Petroleum Contracts
- A brief overview of the O&G industry
- Oil and gas terminology
- The legal framework for Upstream Contracts
- Introduction to contract formation
- Key oil and gas terminology
- Oil and gas industry structure
- Relationship between different players in the oil and gas industry
- Phases of the oil and gas industry
- Oil and gas contract fundamentals and legal principles
- Territorial water, continental shelf and United Nations Convention on the Law of the Sea (UNCLOS)
Contracting in the Upstream Sector: Ownership and Licensing
Ownership and exploitation of reserves
- The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
- Characteristics of upstream contracts
- Commercial realities of the oil and gas business
- Agreement with resource holders
- Ownership of oil and gas
- Risk Service Contracts (RSCs)
- Grant of rights by the resource holder
Host country's legal and regulatory framework and fiscal regime; stabilization
- Role of the host government
- Key Issues in international oil and gas contracts
- Negotiation framework and strategy; objectives of host countries/NOCs and IOCs
Host Government’s Role in Upstream (Exploration & Production (E&P)) Agreements
- Overview of upstream operations and E&P agreements (types and trends by region)
- Key differences between Production Sharing Contracts (PSCs), concessions, service contracts, and JV contracts
- Role of Host Government in Upstream Contracts
Production sharing contracts (PSC) & Joint Operating Agreements (JOA)
- Different approaches and levels of complexity
- New PSC’s in key jurisdictions
- The role of calculation
- Understanding the formulas
- The non-fiscal legal and contractual terms
- Contractual terms and conditions
- Royalties and taxes
Commercial terms in licensing and concession agreements
- Fiscal arrangements, license fees
- Four key financial aspects to a PSC:
- Royalty, The R factor
- Cost oil
- Profit oil
- Taxation
- Bonuses, Penalties
- PSC – Cash Flow Distribution
- PSC – CF Distribution Example – Year N+1
- Comparison of Fiscal Systems
Joint Operating Agreements (JOAs)
- What is a Joint Operating Agreement (JOA)?
- Nature, aim, and functions of a joint venture
- Government approval
- Key areas of the JOA
- Purpose and scope: participating interests
Service Contracts, Farm-In and Farm-Out and Unitization - Risk bearing and Non-Risk Bearing Service Contracts
- Service Contracts