(Click Category to List Courses)
18 - CMN - Contract Management and Negotiation Skills
CMN 151B - Petroleum Upstream Contracts (10 Days)
| Code | Start Date | Duration | Venue | |
|---|---|---|---|---|
| CMN 151B | 16 December 2024 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 10 February 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 07 April 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 16 June 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 28 July 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 22 September 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 17 November 2025 | 10 Days | Istanbul | Registration Form Link |
| CMN 151B | 08 December 2025 | 10 Days | Istanbul | Registration Form Link |
Course Description
Petroleum doesn't last forever. It is a non-¬renewable resource. This fundamentally drives the business decisions of Governments and companies, a key part of which is that most petroleum contracts are structured to contemplate the entire life span of a project, its beginning, middle, and end.
Upstream Petroleum contracts can vary widely in their details, however all must establish two key issues on how profits are divided between the government and participating companies.
This 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.
This Upstream Petroleum Contracts training course is designed to be highly practical and includes hands-on interactive sessions that will help participants understand the practical issues involved and the pitfalls to avoid. A well-negotiated and drafted Upstream Petroleum Contract must stand the “test of time” and provide parties with stability as well as adaptability when circumstances change over the course of the years.
Course Objectives
- 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
Who Should Attend?
- Senior Contract Negotiators and Managers
- Legal Managers
- Legal Counsels
- Commercial and Business Managers
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- Contracts Administrators and Managers
- Commercial, Financial and Insurance Professionals
- Project and General Management Personnel
Course Details/Schedule
Day 1
- Introduction and Overview of Upstream Petroleum Contracts
- 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
- 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)
Day 3
- 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 Resource Holder
Day 4
- Host Country's Legal and Regulatory Framework and Fiscal Regime – Stabilization
- Role of 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
Day 5
- Production Sharing Contracts (PSC) & Joint Operating Agreements (JOA)
- Commercial Terms in Licensing and Concession Agreements
- Fiscal Arrangements, License Fees
- Five 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
Day 6
- What is a Joint Operating Agreement (JOA)?
- Joint Operating Agreements (JOAs)
- Nature, Aim and Functions of a Joint Venture
- Government Approval
- Key Areas of the JOA
- Purpose and Scope: Participating Interests
Day 7
- Service Contracts, Farm-In and Farm-Out and Unitization - Risk Bearing and Non- Risk Bearing Service Contracts
- 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 8
- Unitization and Unit Operating Agreements (UUOAs)
- What is unitization?
- Unitization in Practice
- Government Approval
- Transboundary Unitization
Day 9
- Negotiating Production Sharing Contracts
- Negotiating Production Sharing Contracts
- Government Take
- Production Share and Cost Recovery
- Local Content
- Force Majeure
- Dispute Resolution
- Stabilization and Renegotiation Provisions
Day 10
- Negotiation Simulation Exercise
- Negotiation a PSA with a Government Entity
- Feedback Session
- Negotiation of Oil and Gas Disputes
- Importance of Negotiation in Oil and Gas Business
- Disadvantages of Competitive or Positional Negotiation
- Principled Negotiation between the Parties to Achieve Best Results
