Mastering Production Sharing Contracts from a Contractor’s Perspective: Legal, Financial, and Strategic Considerations in Petroleum Contracting

By the end of this course, participants will be able to:

• Analyze the Structure and Key Provisions of PSCs and JOAs – Examine the contractual framework governing petroleum operations, with a focus on the contractor’s rights, obligations, and financial incentives under PSCs and JOAs.
• Apply Financial Modeling and Cost Recovery Mechanisms – Utilize financial analysis techniques to calculate cost recovery, profit oil allocation, and cash flow projections, ensuring economic viability for contractors.
• Develop Effective Negotiation and Risk Management Strategies – Formulate negotiation approaches to balance contractor and host government interests, addressing stabilization clauses, fiscal terms, and dispute resolution mechanisms.
• Navigate Regulatory Compliance and ESG Requirements – Assess legal, environmental, and social responsibility obligations, integrating ESG principles and local content policies into PSC and JOA frameworks.
• Adapt to Emerging Industry Trends and Contractual Challenges – Evaluate the impact of evolving energy policies, market dynamics, and technological advancements on PSCs, ensuring long-term project sustainability and profitability.

Intermediate course designed for professionals with experience with petroleum projects and contracts. This course is ideal for: lawyers, joint venture or PSC managers, new venture managers, exploration geologists, reservoir engineers, contract negotiators, asset managers, project managers, regulators, risk and compliance managers, asset operations managers and other industry professionals that need training in managing PSCs and JOAs.

• Intermediate

OFFLINE READING: Participants will be provided with appropriate articles, book excerpts and other preparatory materials in advance of the course. The advance reading will also include 3-5 offline assignments to reinforce concepts in the presentations and reading material.

CASE STUDY: Participants will analyze a realistic offshore oil project where an international contractor enters a Production Sharing Contract (PSC) with a host government and forms a Joint Operating Agreement (JOA) with other private investors. The case study follows the contractor from initial negotiations, through the exploration and development phases, to financial management, regulatory compliance, and dispute resolution challenges. Key issues include cost recovery disputes, risk allocation, fiscal stability concerns, disagreements over project budgets, and the impact of environmental regulations.

Unlock the potential of your workforce with customized in-house training programs designed specifically for the energy sector. Our tailored, in-house courses not only enhance employee skills and engagement but also offer significant cost savings by eliminating travel expenses. Invest in your team’s success and achieve specific outcomes aligned with your organization’s goals through our expert training solutions. Request for further information regarding our on-site or in-house training opportunities.

In our ongoing commitment to sustainability and environmental responsibility, we will no longer providing hard copy training materials. Instead, all training content and resources will be delivered in digital format. Inspired by the oil and energy industry’s best practices, we are leveraging on digital technologies to reduce waste, lower our carbon emissions, ensuring our training content is always up-to-date and accessible. Click here to learn more.

To further optimise your learning experience from our courses, we also offer individualised coaching support. We can help improve your competence in your chosen area of interest, based on your learning needs and available hours. This is a great opportunity to improve your capability and confidence in a particular area of expertise. It can be delivered virtually through video conference or face to face by one of our senior subject matter experts. They will work with you to create a tailor-made coaching program that will help you achieve your goals faster. Learn more about our post training coaching services here.