Forging Partnerships: Upstream Commercial Contracts and Negotiation Training Course

Introduction

In the capital-intensive and high-risk world of upstream oil and gas, successful exploration and production ventures are underpinned by a complex web of commercial contracts. These agreements govern everything from the rights to explore and produce hydrocarbons (e.g., Production Sharing Contracts, Concessions) to joint ventures, service agreements, and sales contracts. The ability to understand, draft, and skillfully negotiate these contracts is paramount for protecting interests, allocating risks, and maximizing the economic value of assets in a volatile market.

This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of upstream commercial contracts and advanced negotiation strategies. From exploring various types of petroleum agreements and their fiscal terms to mastering joint operating agreements, service contracts, dispute resolution mechanisms, and cross-cultural negotiation tactics, you will gain the expertise to navigate the complex legal and commercial landscape of upstream oil and gas. This empowers you to secure favorable terms, mitigate contractual risks, and strategically contribute to the financial success and long-term sustainability of exploration and production ventures.

Target Audience

  • Commercial Managers and Analysts in Upstream Oil & Gas.
  • Legal Counsel and Contract Administrators.
  • Business Development Professionals.
  • Project Managers and Project Engineers.
  • Procurement and Supply Chain Professionals.
  • Joint Venture (JV) Managers.
  • Government Officials involved in Petroleum Agreements.
  • Financial Analysts and Investment Professionals in Upstream.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the fundamental types of upstream petroleum contracts and their key clauses.
  • Grasp the various fiscal regimes and their impact on project economics.
  • Analyze the structure and key provisions of Joint Operating Agreements (JOAs).
  • Comprehend the principles of effective negotiation in the oil and gas context.
  • Evaluate different dispute resolution mechanisms for commercial contracts.
  • Develop practical skills in drafting, reviewing, and negotiating upstream agreements.
  • Navigate the complexities of risk allocation and liability in contracts.
  • Formulate robust strategies for securing optimal commercial terms and managing contractual relationships.

Course Content

  1. Introduction to Upstream Commercial Landscape
  • Overview of the upstream oil and gas value chain.
  • Key stakeholders in upstream projects: governments, IOCs, NOCs, service companies.
  • Economic drivers and risks in exploration and production.
  • Importance of commercial contracts in managing risk and allocating value.
  • Overview of international oil and gas industry trends.
  1. Types of Upstream Petroleum Agreements
  • Concession Agreements/Licenses: principles, rights, obligations.
  • Production Sharing Contracts (PSCs): cost recovery, profit oil/gas, government take.
  • Service Contracts: technical service agreements, risk service agreements.
  • Joint Ventures and Farm-out/Farm-in Agreements.
  • Key terms and clauses common across petroleum agreements.
  1. Fiscal Regimes and Economic Terms
  • Royalties: types, calculation, impact.
  • Taxes: corporate income tax, windfall profit tax.
  • Production Sharing: cost oil/gas, profit oil/gas mechanisms.
  • Bonuses: signature, production.
  • Depletion allowances, depreciation, and investment credits.
  • Impact of fiscal terms on project economics and investor returns.
  1. Joint Operating Agreements (JOAs)
  • Purpose and importance of JOAs in joint ventures.
  • Key provisions: scope of work, operatorship, voting procedures.
  • Accounting procedures and cash calls.
  • Default provisions and withdrawal.
  • Unitization and redetermination clauses.
  1. Service Contracts and Procurement
  • Types of service contracts: drilling, seismic, engineering, construction.
  • Key clauses: scope of work, payment terms, indemnities, liabilities.
  • Tendering and bidding processes in upstream.
  • Contract administration and performance management.
  • Local content requirements and their contractual implications.
  1. Negotiation Fundamentals and Strategies
  • Principles of effective negotiation: win-win vs. distributive bargaining.
  • Preparation for negotiation: objectives, BATNA (Best Alternative to a Negotiated Agreement).
  • Negotiation tactics and counter-tactics.
  • Communication skills in negotiation.
  • Building rapport and trust.
  1. Advanced Negotiation Techniques in Oil and Gas
  • Cross-cultural negotiation considerations.
  • Managing power dynamics in negotiations.
  • Dealing with difficult negotiators.
  • Concession strategies and closing the deal.
  • Post-negotiation relationship management.
  1. Risk Allocation and Liability in Contracts
  • Identifying and allocating project risks through contracts.
  • Indemnities and warranties.
  • Force Majeure clauses.
  • Limitation of liability and consequential damages.
  • Insurance requirements in contracts.
  1. Dispute Resolution Mechanisms
  • Hierarchy of dispute resolution: negotiation, mediation, conciliation.
  • Arbitration: advantages, disadvantages, international arbitration bodies (e.g., ICC, LCIA).
  • Litigation: court proceedings.
  • Expert determination and dispute review boards.
  • Enforceability of awards and judgments.
  1. Contract Management and Future Trends
  • Importance of contract lifecycle management.
  • Contract compliance and performance monitoring.
  • Management of Change (MOC) in contracts.
  • Digitalization of contracts: smart contracts, blockchain.
  • Impact of energy transition on upstream contracts (e.g., CCUS, hydrogen).
  • Ethical considerations in contracting.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Forging Partnerships: Upstream Commercial Contracts And Negotiation Training Course in Mauritania
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