An Intensive 5-day Training Course
Oil & Gas Commercial Contracts and Negotiation Skills
CLASSROOM DATES
ONLINE DATES
INTRODUCTION
The oil and gas industry operates in a complex environment with significant contractual and financial implications. Understanding the intricacies of commercial contracts and negotiation dynamics is essential for professionals navigating this high-stakes field. The Oil & Gas Commercial Contracts and Negotiation Skills training course provides a comprehensive overview of the industry’s business, legal, and financial frameworks, equipping participants with the skills to analyze, negotiate, and manage contracts effectively.
This Oil and Gas Contract Management training course delves into the fundamentals of oil and gas exploration, production, and recovery economics to enhance participants' understanding of critical contracting terms. The training course also explores various types of petroleum contracts, including production sharing agreements, concessions, and joint ventures, detailing the rights and obligations of stakeholders such as national oil companies, international oil companies, and host governments.
Participants will gain valuable insights into financial tools and fiscal strategies, learning how these elements influence profitability and drive investment decisions. Additionally, the course emphasizes negotiation techniques, conflict avoidance, and preparation strategies to conclude successful agreements in a competitive and geopolitically influenced sector.
TRAINING OBJECTIVES
By completing this Contract Negotiation training course for the Oil & Gas Industry, participants will:
- Gain a broad perspective on the essential factors influencing the oil and gas business.
- Enhance their understanding of oil and gas laws and commercial contracts.
- Evaluate the technical, commercial, and financial aspects of contracts, assessing their impact on profitability.
- Build confidence in discussing technical terms, concepts, and industry-specific jargon.
- Master negotiation skills to lead and influence successful business agreements.
WHO SHOULD ATTEND?
This EuroMaTech training course is designed for professionals across various roles, including:
- Business Development Managers exploring new opportunities.
- Negotiators and Contracting Professionals.
- Corporate Planning Professionals.
- Legal, environmental, banking, insurance, finance, and tax advisors involved in oil and gas contracts.
- Geologists, geophysicists, and petroleum engineers seeking insights into fiscal regimes.
- Supply Planners and Scheduling Professionals.
- Government Regulators.
- Auditors and Compliance Officers.
- Equity Analysts, Bankers, and Joint Venture Officers.
TRAINING METHODOLOGY
This EuroMaTech Oil & Gas Commercial Contracts training course employs a practical, interactive approach to learning, including:
- Detailed analysis of oil and gas contracts and case studies.
- Exercises and quizzes to reinforce understanding of fiscal regimes and contracting terms.
- Training videos to illustrate negotiation techniques and business case discussions.
- Role-playing activities to practice negotiation skills.
- Group discussions to explore real-world scenarios and best practices.
TRAINING SUMMARY
The Oil & Gas Commercial Contracts and Negotiation Skills Training Course equips participants with a thorough understanding of the contractual, fiscal, and technical aspects of the oil and gas industry. It focuses on the financial tools, strategies, and fiscal terms that impact profitability for contractors and host governments. The course also provides a structured approach to mastering negotiation skills, helping participants conclude successful agreements that align with business objectives.
Key takeaways include:
- Comprehensive knowledge of oil and gas contracts and fiscal regimes.
- Enhanced ability to evaluate and negotiate contracts effectively.
- Improved confidence in discussing technical and financial terms with peers and clients.
- Practical negotiation skills to drive successful business outcomes.
Participants will leave the Oil & Gas Commercial Contracts training course equipped to manage complex contracts, optimize profitability, and lead impactful negotiations in the dynamic oil and gas sector. (Browse More Oil & Gas Process Engineering Training Course)
TRAINING OUTLINE
Day 1: Introduction to Legal, Fiscal and Contractual Basics
Crude Oil & Gas
- The Oil Industry Streams
- Demand Drivers for Crude Oil
- Drilling Contracts – Contract Alternatives
Legal Fiscal and Contractual Framework Ownership
- Oil and Gas Rights and Ownership – The Ad Coelom Doctrine
- The Rule of Capture
- A rule of “No liability”
- Limitations to Rule of Capture
- Theories of Ownership – Escaped Hydrocarbons
- Drainage by Enhanced-recovery Operations
- Doctrine of Correlative Rights
- Conservation Laws – Drilling Wells
- Conservation Laws – Fair Share Doctrine
- Function of Oil and Gas Conservation Laws
- Well-Spacing Rules
Day 2: Introduction to Contracts
Kinds of Oil and Gas Interests
- Fee Interest
- Mineral Interest
- Leasehold Interest
- Surface Interest
- Royalty Interest
- Production Payment
- Carried Interest
- Other Interests
Key Stages of Petroleum Projects in View of Contracts
- Explore to find it in the first place;
- Develop the infrastructure to remove oil & gas from ground;
- Produce (and sell) the oil & gas you have found;
- Abandon the wells and protect the environment when it runs out and clean up (“decommission”)
What is a Petroleum Contract
- Need for Collaboration between parties
- What is a Petroleum Contract?
- Host Government Contract
- Petroleum Fiscal Regime defined
- Petroleum contracts under different regimes
- Awarding or winning contracts
- Types of Petroleum Contracts and their Key Attributes
- Upstream Project Agreement
- Host Government Take
- An example of Concessionary System’s Cash Flow
- Optimal Government Take
- PSC – Cash Flow Distribution
- PSC – CF Distribution Example – Year N+1
- Comparison of Fiscal Systems
- Flexible Fiscal Regimes
- Why Dynamic Terms are used in Contracts
- Joint Ventures and Other Combinations
Day 3: Roles, Responsibilities and Fiscal Tools
Dissection of Petroleum Contracts
- The document follows the events of project
- Order and Disorder in the Clauses
Parties Roles and Responsibilities in Petroleum Contracts
- The General Framework of parties involved
- National Oil Company Multiple roles
- International Oil Company Role
- Grants of Rights to a party – Contractor and Host Government
- Rights and Obligations of Host Government
- Addressing important operational issues in the contract
- Contract Area or Block
- Time periods in contracts
- Minimum Work Obligations in Exploration Phase
- Relinquishment of Unused Area to Government
- Discovery, Appraisal, Declaration of Commerciality and Development
- Post Commercial Discovery – A Field development Plan
- Annual Work Programs & Budgets – Petroleum Contracts
- Joint Management – Petroleum Contracts
- Deadlock – Petroleum Contracts
The Financial Considerations in Petroleum Contracts – Fiscal Tools
- Tools for Concessions, Production Sharing Contract and Participating Agreements
- Signature Bonus
- Production Bonus
- Rental
- Royalty – Fixed Royalty, Sliding Royalty, & Royalty Determination Point
- Payment in Cash or In Kind
- Corporate Income Tax and Ring Fencing
- Profit Sharing
- Production Sharing – Contract’s & Government share
- Fixed Profit Oil Shares
- Sliding Scale Profit Sharing
- Cost Oil
- State Participation – A Fiscal Tool in PSC
Day 4: Strategies and Solutions
Fiscal Strategies and Solutions
- Intro to Fiscal Strategies and Solutions in PSC
- Strategies for State to meet their Profitability
- The 4 Key Questions that Defines the Strategy
- The Changing Profitability – Due to Prices, Costs, Production Rates
- Understanding the Regressive, Neutral & Progressive Fiscal Tools
- Approaches to Profitability
- Profitability And The Fiscal Tools
- Timing of Petroleum Revenues – Fiscal Tools
- Risk for The State – Fiscal Tools
- State Participation as a Co-Investor
- Encouraging Investment and Re-Investment
- The Shift to Unconventional Oil & Gas
Gas and LNG Contracts
- Intro to Fiscal Strategies and Solutions in PSC
- Strategies for State to meet their Profitability
- The 4 Key Questions that Defines the Strategy
- The Changing Profitability – Due to Prices, Costs, Production Rates
- Understanding the Regressive, Neutral & Progressive Fiscal Tools
- Approaches to Profitability
- Profitability And The Fiscal Tools
- Timing of Petroleum Revenues – Fiscal Tools
- Risk for The State – Fiscal Tools
- State Participation as a Co-Investor
- Encouraging Investment and Re-Investment
- The Shift to Unconventional Oil & Gas
Gas and LNG Contracts
- The Distinct Characteristics
- Liquefied Natural Gas Business
- Liquefied Natural Gas – Contracts
- Gas Sales and Transportation Contracts
- Gas Transportation Tariffs
- Gas Sales Agreements – Terms & Quantity
- LNG Sales And Purchase Agreements
- General Economics for Gas Exploration & Development
Day 5: Negotiations Skills
Art and Science of Negotiations Skills
- What is negotiation?
- Understanding relations between conflicts and negotiations
- Identify key roles and responsibilities of negotiating team
- Preparing for negotiations
- Implement an effective negotiations process
- Understanding key success bargaining factors
- Concluding the negotiations
Assignments and Business Case Studies
Glossary and Abbreviations in Oil & Gas Downstream
CALL ME BACK
Do you wish for us to conduct this course at your premises?
Discover In-House Solutions
ACCREDITATION
EuroMaTech is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
Euromatech is a Knowledge & Human Development Authority (KHDA) approved training institute in Dubai, licensed and approved to deliver training courses in the UAE.
The KHDA is the regulatory authority in the UAE, that oversees administering, approving, supervising, and controlling the activities of various education providers in the UAE. We are proud of our commitment to ensuring quality training courses and status as a KHDA-approved training provider.
FAQ
We are happy to share the profiles of our expert instructors. To learn more about their qualifications and experience, please contact us info@euromatech.com
We provide two flexible training formats to suit your preferences:
- Classroom Training: Experience in-person learning with expert instructors. Engage in interactive discussions, hands-on activities, and benefit from face-to-face networking.
- Online Training: Join live online sessions from anywhere, offering flexibility for those with busy schedules or who prefer remote learning.
- In-House Training: We can bring our training directly to your organization, allowing for tailored sessions that address your specific needs and objectives.
Yes, we provide tailored training solutions designed to meet the specific needs of your organization. Customized courses can be delivered either in-person or online, and you can select the dates and duration that best fit your schedule. For more details, please contact us at inhouse@euromatech.com
Yes, we can assist you with the following:
- Corporate Discount: If available, we can extend our corporate discount for your stay at selected hotels.
- Hotel Suggestions: We can provide recommendations for nearby hotels based on your preferences and budget.
Feel free to explore online booking platforms for the most cost-effective options.
EuroMaTech has successfully delivered thousands of training courses, with thousands of professionals from over 50 countries attending annually.
EuroMaTech provides a range of ISO certification and compliance training courses, including:
- ISO 9001 – Quality Management Systems Training
- ISO 45001 – Occupational Health & Safety Management Training
- ISO 14001 – Environmental Management Systems Training
These courses help organizations adopt internationally recognized standards and improve their overall performance.
To register for a training course, you can:
- Visit the EuroMaTech website, browse the available courses, and follow the online registration process.
- Contact EuroMaTech’s support team for assistance with course selection or inquiries about corporate training solutions.
EuroMaTech stands out as a leader in training and professional development due to:
- 30+ years of experience delivering high-impact training courses across industries.
- Accreditations from leading institutions, ensuring top-tier course quality and recognition.
- A portfolio of thousands of training courses, serving professionals at every level.
- A focus on innovation and future-ready learning models, including blended and digital training.
- Long-term partnerships with organizations globally, ensuring sustained success through talent development.
