Production Sharing Contracts Masterclass

Workshop Overview

The workshop is all about making you ready in understanding the fundamentals of Production Sharing Contracts/Agreements and modeling a PSC cash flow model for investment decision analysis. This workshop’s approach is primarily based on live model building exercise and case studies.

 Delegates will learn to build economic models in Excel and learn to answer various key questions frequently asked by CEOs/CFOs/management, to aid in the investment decisions. You will also understand how to develop economic models of various petroleum fiscal regimes with emphasis on Production Sharing Contracts.

Major Benefits Of Attending:

By end of this course, delegates will be able to:

  • DETERMINE all types of fiscal/contractual arrangements that govern business relationships between oil companies and governments
  • DECIPHER key elements of a production sharing contract
  • UNDERSTAND how to develop economic models of various petroleum fiscal regimes with emphasis on Production Sharing Contracts.
  • LEARN to construct fairly sophisticated Excel models to convert the contract terms into dynamic cash flow model
  • UNDERTAKE sensitivity and scenario analysis of PSC for investment decisions.
  • MASTER numerous variations on the basic themes such as royalty/tax, PSC and Service Agreements, Risk Service Contracts, rate of return systems & R-factors
  • UNDERSTANDING different depreciation methods by modelling
  • DISCOVER on the strong fundamental elements of normal petroleum operations, production & revenue generation, cost recovery and division of profits

Who Should Attend?

This program is suitable and highly recommended for:

  • Petroleum economist
  • Commercial analysts/managers
  • Energy analyst/managers
  • Reservoir engineers
  • Supervisors and other key employees from Finance, Commercial, Business Development, Planning, Legal etc of upstream O&G companies

Why you Should Attend?

Production Sharing Agreements (PSA) are among the most common contractual arrangements for petroleum exploration and development. The present day PSC has progressed into a complex contractual document leading risks and rewards inherent in oil exploration. It is important to know not only the changing terminology and semantics of the PSC but also how fiscal systems have evolved, their economic and financial impact.

 This profoundly engaging course offers delegates an inside and out into the analysis of PSC for investment decisions. Delegates will be exposed to key concepts in PSC and petroleum economics modelling by doing exercises and building models as well as doing scenario and sensitivity analysis under the guidance of experienced economist.