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5-Day Training Course

Upstream Petroleum Contracts

Comprehensive Hands-On Guide for Oil and Gas Professionals

Course Overview

Petroleum doesn't last forever. It is a non-­renewable resource. This fundamentally drives the business decisions of Governments and companies, a key part of which is that most petroleum contracts are structured to contemplate the entire life span of a project, it's beginning, middle, and end.

Upstream Petroleum contracts can vary widely in their details, however all must establish two key issues on how profits are divided between the government and participating companies.  

This Upstream Petroleum Contracts training course provides in-depth information on the types of upstream petroleum contracts and what their differences are and what are the main contractual terms participants need to know in order to fully understand all types of Upstream Petroleum Contracts. This Contracts Management training course will comprehensively cover Production Sharing Contracts, Exploration & Production Agreement (E&P) Exploration & Exploitation Contract, License Agreement, and participants will take away essentials elements of these contracts to be effectively used in their own companies.

This Upstream Petroleum Contracts training course is designed to be highly practical and includes hands-on interactive sessions that will help participants understand the practical issues involved and the pitfalls to avoid. A well-negotiated and drafted Upstream Petroleum Contract must stand the “test of time” and provide parties with stability as well as adaptability when circumstances change over the course of the years.

This Energy Training Centre training course will highlight:

  • The Fundamental Types of Upstream Petroleum Contracts
  • The Advantages and Disadvantages of the Different Types of Upstream Petroleum Contracts and How it is suitable for Specific Types of Projects
  • Concessions, Production Sharing & Risk Service Contract, Important Details and Suitability for any Oil and Gas Upstream Project
  • The Role of JOA in Upstream Petroleum Contracting Conciliation, Mediation and Settlement of Disputes
  • Understanding the Essentials Terms of Unitization and Farm-in, Farm-Out Agreements

Course Objectives

Participants will have a working knowledge of Upstream Petroleum Contracts and how to apply this knowledge to administering Production Sharing Contracts. Further, participant will gain working knowledge of accounting and auditing procedures that will need to be implemented. 

At the end of this Upstream Petroleum Contracts training course, you will learn to:

  • Gain a full understanding of the different types of the Upstream Petroleum Contracts
  • Understand the main contractual terms and their differences between the various types of contracts from PSA, Service contracts and others
  • Be aware of the approaches to negotiation of these contracts
  • Incorporate the best terms into these Upstream Petroleum Contracts

Training Methodology

Participants will gain greater understanding of the subject matter through presentations by an experienced international practitioner designed to both inform and broaden the perspectives of the participants. Case studies will be reviewed and discussed bearing in mind some of the realistic scenarios participants may encounter. Interactive discussions to encourage discussion of problems and possible solutions to it. Negotiation simulation exercise will help participants get a realistic feel for negotiating a PSA contract.

Who Should Attend

This Upstream Petroleum Contracts training course will benefit all levels of personnel involved in resolution of oil and gas disputes. It will enable a broad range of disciplines to appreciate and understand the complexities of conflict resolution in particular in the Oil and Gas industry, and how best to manage disputes in the oil and gas industry.

This training course is appropriate to a wide range of professionals but will greatly benefit:

  • Senior Contract Negotiators and Managers
  • Legal Managers, Legal Counsel
  • Commercial and Business Managers
  • Contracts Administrators and Managers
  • Commercial, Financial and Insurance Professionals
  • Project and General Management Personnel

Course Curriculum

  • Brief Overview of the O&G Industry
  • Oil and Gas Terminology
  • The Legal Framework to Upstream Contracts
  • Introduction to Contract Formation
  • Key Oil and Gas Terminology
  • Oil and Gas Industry Structure
  • Relationship between Different Players in the Oil and Gas Industry
  • Phases of the Oil and Gas Industry
  • Oil and Gas Contract Fundamentals and Legal Principles
  • Territorial Water, Continental Shelf and United Nations Convention on the Law of the Sea (UNCLOS)
  • Ownership and Exploitation of Reserves
    • The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
    • Characteristics of Upstream Contracts
    • Commercial Realities of the Oil and Gas Business
    • Agreement with Resource Holders
    • Ownership of Oil and Gas
    • Risk Service Contracts (RSCs)
    • Grant of Rights by Resource Holder
  • Host Country's Legal and Regulatory Framework and Fiscal Regime - Stabilization
    • Role of Host Government
    • Key Issues in International Oil and Gas Contracts
    • Negotiation Framework and Strategy - Objectives of Host Countries / NOCs and IOCs
  • Host Government‘s Role in Upstream (Exploration & Production (E&P)) Agreements
    • Overview of Upstream Operations and E&P Agreements (types and trends by region)
    • Key Differences between Production Sharing Contracts (PSCs), Concessions, Service Contracts and JV Contracts
    • Role of Host Government in Upstream Contracts
  • Commercial Terms in Licensing and Concession Agreements
    • Fiscal Arrangements, License Fees
    • Five Key Financial Aspects to a PSC:

(a) Royalty, The R factor
(b) Cost Oil
(c) Profit Oil
(d) Taxation
(e) Bonuses, Penalties

    • PSC – Cash Flow Distribution
    • PSC – CF Distribution Example – Year N+1
    • Comparison of Fiscal Systems
  • Joint Operating Agreements (JOAs)
    • What is a Joint Operating Agreement (JOA)?
    • Nature, Aim and Functions of a Joint Venture
    • Government Approval
    • Key Areas of the JOA
    • Purpose and Scope: Participating Interests
  • Participation Agreements (Farm-in and Farm-out)
    • Agreements for Farm-ins and Farm-outs
    • Nature of the Farm-out
    • Subject Matter of the Farm-out
    • Interest Assigned and Reserved
    • Assignment of Interest
  • Unitization and Unit Operating Agreements (UUOAs)
    • What is unitization?
    • Unitization in Practice
    • Government Approval
    • Transboundary Unitization
  • Government Take
  • Production Share and Cost Recovery
  • Local Content
  • Force Majeure
  • Dispute Resolution
  • Stabilization and Renegotiation Provisions

Negotiation Simulation Exercise

  • Negotiation a PSA with a Government Entity
  • Objective: The objective is to establish what can be achieved in the meeting, what preparation is needed for it and what strategy should be adopted and then to pursue this strategy
  • Feedback Session

Negotiation of Oil and Gas Disputes

  • Importance of Negotiation in Oil and Gas Business
  • Disadvantages of Competitive or Positional Negotiation
  • Principled Negotiation between the Parties to Achieve Best Results

Certificates Awarded

Certificate of Completion

After successfully completing this training course, participants will be awarded The Energy Training Centre Certificate of Completion — a respected validation of their dedication to continuous learning and professional excellence. This certificate signifies that participants have gained the essential knowledge and skills required to make a measurable impact in their field.

Upcoming Sessions
Dubai, UAE
Live Virtual Session
London, UK
Dubai, UAE
London, UK
Dubai, UAE
Kigali, Rwanda
Live Virtual Session
Istanbul, Turkey
London, UK
Live Virtual Session
Amsterdam, The Netherlands
Dubai, UAE
Lisbon, Portugal
Live Virtual Session
Dubai, UAE
London, UK

This course is also part of a 10-day title

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Frequently Asked Questions

Our training courses are conducted at partnered hotels located within the specified training areas. Please note that venue assignments may vary based on availability. For the most current information, do not hesitate to contact us at [email protected].

Yes, we do. We provide tailored training courses designed to meet the specific requirement of larger group of individuals. These customized training courses can be conducted both classroom and online formats, allowing you the flexibility to choose you preferred dates and duration.

Please contact us at [email protected] to discuss your group’s training needs, and we’ll work with you to create a personalized training course that aligns with your objectives.

Upon successful completion of the training course, you will receive The Energy Training Centre Certificate of Completion with corresponding learning hours.

Yes, special discounts are available upon request if you have more than one registrant for a course. For further information please email us at [email protected]

We offer two convenient payment options:

  • Bank Transfer – You can make payment via bank transfer. Once your registration is confirmed, you will receive an invoice with the banking details for the transfer. We would require you to supply a swift copy for us to confirm receipt of funds.
  • Payment Link – Alternatively, we provide a secure payment link that you can use to complete your payment after your registration has been confirmed.

Upon receiving your registration details, either via email at [email protected] or through our online registration form, we will send you the following by email within 24-48 hours of registration.

  • Joining Instructions
  • Invoice/receipt (where appropriate)

There are two convenient options to register for a training course:

  • Online Registration Form – Register for your desired training course by completing the online registration form available on our website. Simple click on the registration button or select your preferred dates and provide the requested information.
  • Email Registration – You can email us your intention to register at [email protected]. Our team will guide you through the registration process and provide assistance you may need.

We understand that time zones may be different between our Senior Consultants and our delegates. Our standard online course timings (11:00 AM to 4:00 PM, GMT+4 – Dubai, UAE) may be adjusted upon confirming the programme. Our team shall communicate between the confirmed registered delegates and suggest a suitable course timing for all.

Our standard course duration for our classroom programmes is 6 hours per day while our online session is 5 hours per day.

Our training courses span across diverse industries, encompassing sectors such as but not limited to:

  • Power & Utilities
  • Oil & Gas
  • Financial Institutions
  • Government and Regulatory bodies
  • Manufacturing & Production Industry

Our commitment lies in continuously refining and expanding our training course offerings to align with evolving industry landscapes. We encourage individuals to explore our website or engage with our dedicated support team for the latest information on available courses, ensuring access to the most pertinent and current educational resources.

Yes, The Energy Training Centre is certified and recognized by several prominent industry standards. Specifically, it holds certifications from ILM, Continuing Professional Development (CPD), and the Project Management Institute (PMI).

  • ILM (ID# 002398B) – This certification indicates that our training programmes meet high standards for leadership and management development, ensuring that they are designed to enhance participants’ skills in these critical areas.
  • Continuing Professional Development (CPD) – Our recognition by CPD reflects our commitment to providing educational opportunities that support ongoing professional growth and skill enhancement. This accreditation ensures that our training courses are relevant and effective for professionals seeking to advance their careers.
  • Project Management Institute (PMI) – Being recognized by PMI signifies that our training programmes align with industry best practices in project management. This certification assures participants that our offerings are in line with the standards required for effective project management and are valuable for those pursuing or maintaining PMI credentials.

These certifications underscore our dedication to providing high-quality, industry-relevant training that fosters professional growth and meets established standards. Additionally, we are actively pursuing further certifications and affiliations to enhance our offerings and ensure we remain at the forefront of industry best practices.

About Energy Training Centre

Energy Training Centre is a leading provider of professional development programs for the energy and public sectors. With over 15 years of experience, we have trained more than 50,000 professionals across the Middle East and beyond.

Our expert-led courses are designed to meet the evolving needs of modern organizations, combining theoretical knowledge with practical applications that deliver immediate value to your career and organization.

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