Petroleum Fiscal Regimes

3 days 10-12 Sep 2018, London UK £3,450.00 + VAT* Download brochure Add to basket

* Claim back your VAT
Find out more

Request a different date or location for this course (we regularly add courses following requests).

{{alternativeRequestSuccess}}
{{alternativeRequestError}}

* Claim back your VAT
Find out more

Overview

Attend this practical and interactive three-day training course and enhance your knowledge in the following key areas:

  • The history and evolution of production sharing contracts (PSC’s)
  • The PSC flowchart, content and format
  • Cost recovery
  • Profit sharing
  • Bonuses
  • Sliding scale fiscal mechanisms
  • Taxation
  • Ring fences
  • The economics of PSC’s

Plus: Production Sharing Contract Fiscal Modelling Workshop

This course explores the structure and mechanisms of production sharing contracts (PSC’s) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements. The PSC Economic course brings the theory to life, allowing course attendees to build and interpret their own PSC model based on a real life example.

Who should attend

  • Production sharing partners
  • Economists working in the industry
  • Business development managers
  • Lawyers involved in the industry
  • Analysts working in the industry
  • Auditors working in the industry

Course Objectives

  • Learn about the history, evolution & structure of PSC’s
  • Investigate cost recovery & profit sharing
  • Examine fiscal mechanisms & ring fence calculations
  • Identify taxation liability & allowances
  • Construct a production sharing contract spreadsheet model
  • Interpret model outputs to enhance investment decision making

All our courses are available in-house.

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Peter Wright

COURSE DIRECTOR

MBA, Cranfield School of Management (1990)
MA in Engineering, Downing College, Cambridge (1981)

The Course Director is a Principal Economist at Robertson (UK). From 2004 to 2013 he worked as an Independent Petroleum Economist engaging in all aspects of petroleum economics including commercial evaluations, transaction support, economic / financial modelling, cost estimating and budgeting / forecasting. Projects evaluated have comprised onshore and offshore oil & gas fields, shale gas, FPSO investments, gas storage, carbon capture, pipelines, oil field rehabilitation, and refinery construction.

Clients have included:  Petrofac (FTSE 100 Oil Services Group); Senergy (Energy Services Company) ; RPS Energy plc (International Energy Consultants) – CPR valuations and reserve audits for UK onshore, Angola, Algeria, China, Gabon,  Morocco, Tunisia, Russia and Kurdistan.  Mitsui – economic evaluation of oil/gas fields offshore in West Africa; Granby Oil & Gas – economics for UK exploration portfolio; Marubeni Corporation - acquisition support and commercial evaluation of assets offshore UK, Denmark, Holland, Qatar, Kurdistan, Equatorial Guinea and Mauritania and Sumitomo Corporation – detailed commercial evaluations and bid support for assets in the UK and the Far East.

Early in his career the Course Director was a Project Engineer at Doris Engineering SA; Senior Consultant at ODE Ltd and Director/Petroleum Economist at Indeva Energy Consultants Ltd.

He is a member of the Society of Petroleum Engineers (SPE)

 

Venue

London

Central London Hotel (energy)

All Euromoney Energy Training courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

inhouse-learn-more

We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Day 1

An introduction to production sharing contracts and upstream economic analysis

  • The history and evolution of production sharing contracts (PSC’s)
  • The basic PSC, contractor and government relationship
  • The PSC flowchart, content and format

The fundamentals of upstream economic analysis

  • Discounted cashflow
  • Discount rate, discount factor and discount method
  • The cost of capital and the hurdle discount rate
  • Capital budgeting techniques (NPV, IRR, DPIR, payback)
  • Valuing an asset, making development & investment decisions
  • Inflation, cost escalation, real versus nominal cash flows
  • Managing risk

Cost recovery

  • Cost recovery mechanism
  • Recoverable costs
  • Cost oil, cost gas and NGL’s
  • Excess cost recovery
  • Cost recovery calculation and examples

Case studies

Profit sharing

  • The profit pool
  • Profit sharing
  • Profit gas and profit oil
  • Profit sharing calculation and examples

Case studies

Day 2

Bonuses

  • Signature & commerciality
  • Production
  • Cost recoverability
  • Bonus calculation and examples

Case studies

Sliding scale fiscal mechanisms

  • Production rate
  • Production volume
  • R-Factor
  • Step versus incremental methods
  • Sliding scale calculations and examples

Case studies

Taxation

  • The basis of the taxation liability
  • The CT ring fence
  • Chargeable income
  • Capital allowances
  • Other allowances
  • CT rates, losses and abandonment costs
  • Liability and payment phasing
  • Taxation calculations and examples

Case studies

Ring fences

  • PSC ring fence
  • Taxation ring fence
  • Ring fence calculations and examples

Case studies

The economics of PSC’s

  • Contractor cash flow
  • Government cash flow
  • Comparison with royal and taxation systems

Case studies

Day 3

Production Sharing Contract Fiscal Modelling Workshop

  • A PSC based case study modelling the fiscal terms in Microsoft Excel(TM)
  • Understanding the PSC fiscal structure and algorithms
  • Determining the field, economic and fiscal data and building the input decks
  • Step by step construction of the PSC model
  • Running the economic cases and evaluating the results
  • Analysis of the sensitivities
  • Electronic copy of model solution provided to delegates

Summary and closing remarks


Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product