Production Sharing Contracts & International Petroleum Fiscal Systems
PSC Course
Production Sharing Contracts
Attend The World’s Best Selling PSC Course Held in Over 40 Cities Worldwide to Critical Acclaim!
5 March 2024 to 8 March 2024, Asian Venue
Overview
The Production Sharing Contracts (PSC) course provides critical information to create the right commercial framework for successful PSC negotiations. It examines state-of-the-art practice and techniques in fiscal system, analysis and design.
Any type of ‘extractive industry’ will come under the realm of the course including coal, gold & rock mining, geothermal, coal-bed methane, conventional oil & gas, shale oil & gas, deepwater, enhanced oil recovery, LNG & gas-fired power generation. And that is because the PSC course goes way beyond just PSCs.
It covers:
- All types of fiscal/contractual arrangements that govern business relationships between oil companies and governments
- Strong fundamental elements of normal petroleum operations, production & revenue generation, cost
- Recovery and division of profits
- Numerous variations on the basic themes such as royalty/tax, PSC and Service Agreements, Risk Service
- Contracts, rate of return systems & R-factors, ringfencing, relinquishment, bonuses & goldplating.
The course offers 2 Modules over 3.5 days, and delegates
have the option of attending either
Module 1 for 2.5 days or Module 1+2 for 3.5 days.
Course Director
Daniel Johnston
President & Founder, Daniel Johnston & Co
Daniel Johnston, President & Founder of Daniel Johnston & Co., is an independent financial consultant to the international petroleum industry. For the past 25 years he has worked in 44 countries with both International Oil Companies (IOCs) and National Oil Companies (NOCs) on contract analysis and design, negotiations, disputes, and renegotiations. He has a Bachelor of Science Degree in Geology from Northern Arizona University and an M.B.A. (Finance) from the University of Texas at Austin. Daniel founded Daniel Johnston & Co., Inc. in 1985. He writes a column for the Petroleum Accounting and Financial Management Journal (Institute of Petroleum Accounting – University of North Texas) and is author of a number of books including International Petroleum Fiscal Systems and Production Sharing Contracts Pennwell Books (1994).
Who Should Attend
Top Management
CEO, VP, MD, GM
Analyst
Policy, Economic, Financial, Business
Professionals
Legal, Financial, Audit, Tax, Geologist, Engineers
Corporate Executives
Policy Developers, Economist
Government
Regulators, Policy Makers
Investors
Bankers, Financial Institutions
ATTENDANCE 2008 - 2024
Module 1 (2.5 Days 5 - 7 March 2024, Asian Venue)
- Theory of Economic Rent
- Taxation Theory related to the Petroleum Industry
- Calculating Government Take: The Common Denominator
- Negotiation of Commercial Terms: Key Aspects
- Concessionary (Royalty/Tax) Systems
- Production Sharing Contracts
- Variations of the PSC Theme
- Risk Service Contracts
- Rate of Return Contracts
- Joint Ventures
- Technical Assistance/EOR PSCs
- Threshold Field Size Analysis
- The Global Market For Exploration Acreage
- Worldwide Fiscal Systems
Plus Exercises on
- Calculating Government Take
- Effective Royalty Rates
- Cash Flow Audits
- Value of Reserves
- Savings Index
- Government Participation
- Lifting entitlement (‘Booking Barrels’)
- Sliding Scales
Module 2 (1 Additional Day, 7-8 March 2024, Asian Venue)
- Introduction to Petroleum Economics & Analysis
- Cash Flow Modelling & Analysis
- Expected Value Theory
- Exploration Threshold Field Size Analysis
- Development Threshold Field Size Analysis
Plus Exercises on
- Value of Discovery Exercise
- Value of Reserves-in-the-Ground Exercise
- Dynamics of the Savings Index
- Government Participation Analysis
- Rate-of-Return-Systems
Delegates are required to bring their own laptop for Module 2.
An additional session on the 3rd/4th day of the course will feature practical computer-based basics of petroleum risk analysis and decision theory, progressing to the fine points of economic modelling in the international arena.
DELEGATES WILL BE REQUIRED TO BRING THEIR OWN LAPTOP
An additional Workbook will be provided as part of the 3rd/4th day cirriculum.
A spreadsheet containing modules for performing cash flow analysis for most of the mainstream types of fiscal systems including:
- Systems with "R factors"
- Rate-of-Return (RoR) based systems
- Production Sharing Agreements, as well as
- Royalty/Tax system and Service Agreements
will be provided.
A WORKING KNOWLEDGE OF EXCEL IS A REQUIREMENT FOR PARTICIPANTS ATTENDING THE 3rd/4th DAY SESSIONS FOR MODULE 2
Extensive Documentation & Research Materials as Study Aids
Module 1
- (420+ pages) with exercises with numerous problems that teach the practical application of petroleum fiscal system analysis.
Module 2
- An additional workbook covering the Computer-based exercises will be handed out to participants signing up for the 3rd/4th day sessions.
- A spreadsheet module for performing cash flow analysis for most of the mainstream types of fiscal system will also be included as part of the course materials for the 3rd/4th day sessions.
- Delegates must bring a laptop for the 3rd/4th day computer-based exercise sessions. If you would like a laptop to be arranged for you, separate rental fees will apply – Contact the PSC Secretariat for details.
Programme at a Glance
- Theory of economic rent
- Taxation theory related to the petroleum industry
- Calculating government take: the common denominator
- Negotiation of commercial terms: key aspects
- Concessionary (royalty / tax) systems
- Production sharing contracts
- Variations on the PSC theme
- Risk service contracts
- Rate of return contracts
- Joint ventures
- Technical assistance / EOR PSCs
- Threshold field size analysis
- The global market for exploration acreage
- Worldwide fiscal systems
- Production sharing contract outline
- Introduction to Petroleum Economics and Analysis
- Cash Flow Modelling & Analysis
- Expected Value Theory
- Exploration Threshold Field Size Analysis
- Development Threshold Field Size Analysis
- Tests for progressiveness (regressiveness)
- Testing “progressive” royalties
- Value of Discovery Exercise
- Value of Reserves-in-the-Ground Exercise
- Dynamics of the Savings Index
- Government Participation Analysis
- Rate-of-return systems
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