About this Virtual Instructor Led Training (VILT)

Nearly half of the world’s petroleum regimes involve some form of production sharing between Contractors and their Host Country. This Virtual Instructor Led Training (VILT) examines the operational, fiscal and legal aspects of the different types of Production Sharing Contracts (PSC) in use around the world. The Fiscal System of the PSC is analysed using discounted cash-flow model to illustrate the impact on investment criteria such as net present value, internal rate of return and pay-out from changes in factors such as cost recovery, profit sharing, royalty and income tax. In addition to the provisions within the four-corners of the PSC, the agreements related to the various stages of petroleum operations such as Bidding, Exploration, Development, Production and Decommissioning are examined. They include joint venture operations, drilling and well services and agreements for the sale of crude oil and natural gas. Discussions of these agreements will be illustrated with the use of detailed Checklists. The final session covers emerging issues that will impact the future of PSC operations such as International Dispute Resolution, transfer of Late Life Assets, Global Climate Change, and International and Bilateral Investment Treaties and Trade Sanctions.