International Petroleum Fiscal Systems In Mumbai India

International Petroleum Fiscal Systems In Mumbai India

Course Description

International Petroleum Fiscal Systems and Production Sharing Contracts

In the new global energy scenario, one of the major challenges for an Upstream Petroleum Company is to enter into International Market by acquiring participating interests in petroleum ventures in the promising areas of the world. The geological modeling is one of most important decision-making technique for a petroleum venture. Whatever be the result of geological modeling, ultimately, it is the economic evaluation which tells us whether a venture will be successful or not. Petroleum
fiscal system
plays an important role in economic evaluation. It is the most important decision-making element. A venture may become uneconomical if the fiscal system is not structured properly. For a successful venture, generally, a fiscal system having flexible terms is chosen which can be negotiated if necessary. This
necessitates a thorough knowledge of petroleum fiscal systems and the various provisions of the contracts in order to achieve the
significant benefits for both the government and the company.

  • To understand the fundamental aspects of petroleum fiscal systems and types of arrangements.
  • To improve awareness of latest thinking of petroleum fiscal terms of petroleum arrangements through exposure to both commercial and legal terms.
  • To develop professionals, to structure and negotiate a contract beneficial for both the Government and the Company.

oil & gas contracts | petroleum contracts | production sharing contracts | OISD law | international trading

Training Agenda

Day One:

  • A) FINANCIAL
  • B) NON-FINANCIAL
  • INTRODUCTION
  • OBJECTIVES
  • NEED FOR MULTIPARTY OPERATIONS
  • POLICY OPTIONS
  • OVERVIEW OF PETROLEUM FISCAL CONCEPTS
  • FUNDAMENTAL ASPECTS
  • ALLOCATION OF REVENUE
  • ESTIMATION OF GOVT / CONTRACTOR TAKE
  • ESTIMATION OF RESERVE VALUE
  • CLASSIFICATION OF PETROLEUM AGREEMENTS
  • CONCESSIONARY SYSTEMS
  • BASIC FEATURES
  • CASH FLOW DIAGRAM
  • REVENUE DISTRIBUTION
  • CASH FLOW PROJECTIONS MERITS / DEMERITS
  • CONTRACTUAL SYSTEM
  • PRODUCTION SHARING CONTRACTS
  • BASIC FEATURES
  • CASH FLOW DIAGRAM
  • PETROLEUM FISCAL TERMS
  • WORK COMMITMENTS
  • BONUSES
  • RENTALS
  • ROYALTY
  • COST RECOVERY
  • PROFIT OIL SPLIT
  • COMMERCIALITY
  • GOVT. PARTICIPATION / CARRIED INTEREST
  • INVESTMENT CREDITS
  • DOMESTIC MARKET OBLIGATIONS
  • RING-FENCING
  • TAXES
  • OWNERSHIP
  • ACQUISITION PROCESS
  • MANAGEMENT CONTROL
  • DURATION
  • SURRENDER / RELINQUISHMENT
  • UNITIZATION
  • APPROVAL OF DEVELOPMENT PLAN
  • SOLE RISK OPERATION
  • LABOR
  • OWNERSHIP OF EQUIPMENT & DATA
  • ASSIGNMENT

Day Two

  • CASE STUDIES & GROUP DISCUSSIONS
  • RISK SERVICE CONTRACTS
  • BASIC FEATURES
  • SAMPLE SERVICE CONTRACTS
  • PURE SERVICE CONTRACTS
  • OTHER FISCAL ARRANGEMENTS
  • TECHNICAL ASSISTANCE CONTRACTS
  • RATE OF RETURN CONTRACTS WITH FLEXIBLE
  • TERMS & CONDITIONS
  • JOINT VENTURES
  • NEED OF JOINT VENTURES
  • INCORPORATED / UNINCORPORATED JOINT
  • VENTURES
  • PARTICIPATION SPECTRUM
  • JOINT OPERATING AGREEMENTS
  • BASIC CONTENTS OF MODEL OPERATING
  • AGREEMENTS
  • THE ROLE OF NON-OPERATING PARTNERS
  • FARM OUT AGREEMENTS
  • BASIC FEATURES
  • OBJECTIVES
  • SIGNIFICANT FACTORS FOR DECISION
  • CONTENTS OF MODEL FARM OUT AGREEMENTS
  • STRUCTURE AND DRAFTING OF PRODUCTION
  • SHARING CONTRACTS
  • INDIAN PETROLEUM LEGISLATION AND
  • PRODUCTION SHARING CONTRACTS
  • PETROLEUM ARRANGEMENTS WORLDWIDE 
  • GENERAL OVERVIEW
  • INDONESIA
  • CASE STUDIES & GROUP DISCUSSIONS
  • MALAYSIA
  • PHILIPPINES
  • THAILAND
  • UK
  • USA
  • MOROCCO
  • EQUATORIAL GUINEA
  • NORWAY
  • CHINA

Course Director

Mr. A. K. Bansal, He has spent about 38 years with Oil & Natural Gas Corporation (ONGC), India's largest E&P Company, after graduation in Chemical Engineering from Indian Institute of Technology, Roorkee. During his association with ONGC, he has attained vast experience in Oil & Gas production technology and also in Management of Joint Venture Operations under Production Sharing Contracts. His major fields of expertise are: ? Management of Joint Venture Operations in fields operating under Production Sharing Contracts. ? Review & Negotiations of various Oil & Gas Agreements / Contracts. ? Coordination & Monitoring of Joint Venture Operations including review & approval of Work Program & Budget under Production Sharing Contracts. ? Resolution of Commercial & Legal issues related to Production Sharing Contracts & Joint Operating Agreements. He was also associated in development of Oil & Gas fields; Panna-Mukta, Tapti, Ravva and Barmer under Joint Venture Operations. He also dealt all critical issues of Contracts awarded by GoI while on deputation to Directorate General of Hydrocarbons, India. Being a member of Operating Committee for one of India's largest onshore oil assets in Rajasthan, he Conceptualized the concept of Cost Recovery of Royalty being paid by ONGC (having 30% interest) as licensee for 100% of the Petroleum produced from Largest On-land discovery of India (Barmer in Rajasthan) and raised the dispute with partner Cairn, based on contractual provisions of PSC and got the issue resolved successfully thereby turning a loss making venture for ONGC in to a profit making venture which led to ONGC benefitting by Billions of Dollars. He has conducted Training course on “International Petroleum Fiscal System & Production Sharing Contracts” several times at ONGC's Institute of Management Development, Dehradun.
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