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An Intensive 5 Day Training Course

Upstream Petroleum Contracts

Comprehensive Hands-On Guide for Oil & Gas Professionals

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Code Date Venue Fee($)
CM121 25 - 29 Nov 2018 Dubai - UAE 5,500
CM121 02 - 06 Sep 2019 London - UK 5,950
CM121 24 - 28 Nov 2019 Dubai - UAE 5,950

*All fees are exclusive of VAT


Why Choose this Training Course? 

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 Petroknowledge 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 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 Petroknowledge training course is designed to be highly practical and includes hands-on inter-active 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 training course will highlight:


Training Objectives click here

What are the Goals? 

Participants will have a working knowledge of Upstream Petroleum Contracts and how to apply this knowledge to administering Production Sharing Contracts. 

At the end of this 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  

Target Audience click here

Who is this Training Course for?

This PetroKnowledge 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 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

Training Methods click here

How will this Training Course be Presented?

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.

Organisational Impact click here

Negotiating Upstream Petroleum Contracts with ease will ensure your organization will benefit by:

  • Enhancing your company’s ability to negotiate upstream contracts beneficial to the corporation in the short and long term bearing in mind future changes in the industry
  • Improving expertise and skill sets of personnel dealing with accounting and audit policies and procedures
  • Understanding the risk factors in these types of contracts and learning how to mitigate them
  • Enhancing internal capacity to auditing critical areas
  • Better managing claims and disputes by avoiding confrontational approaches
  • Enhancing contract personnel’s negotiation skills and confidence

Personal Impact click here

Attendees will gain by participation in this training course as a result of:

  • In-depth knowledge gained about Upstream contracts and various interpretations to essential clauses of the contract
  • Managing and mitigating risks associated with Upstream contracts
  • Ensuring smooth contract administration of Upstream contracts
  • Enhancing your ability to negotiate and manage disputes

Daily Agenda click here

Day One: Introduction and Overview of Upstream Petroleum Contracts

  • 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)

Day Two: Contracting in the Upstream Sector: Ownership and Licensing

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

 Day Three: Production sharing contracts (PSC) & Joint Operating Agreements (JOA)

  • Different approaches and levels of complexity
  • New PSC’s in key jurisdictions
  • The role of calculation
  • Understanding the formulas
  • The non-fiscal legal and contractual terms
  • Contractual terms and conditions
  • Royalties and taxes

Commercial terms in licensing and concession agreements

  • Fiscal arrangements, license fees
  • Four 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

Day Four: Service Contracts, Farm-In and Farm-Out and Unitization - Risk bearing and Non- Risk Bearing Service contracts

  • Service Contracts
  • Risk Service Contracts
  • Different model forms – sources
  • Risk allocation and insurance
  • Master service contracts

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

 Day Five: Negotiating Production Sharing Contracts 

  • 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

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Home » Courses » Upstream Oil & Gas Training » Upstream Petroleum Contracts
PetroKnowledge Training


Upstream Petroleum Contracts
Comprehensive Hands-On Guide for Oil & Gas Professionals


Code Date Venue Fees
CM121 25 - 29 Nov 2018 Dubai - UAE $5,500
CM121 02 - 06 Sep 2019 London - UK $5,950
CM121 24 - 28 Nov 2019 Dubai - UAE $5,950



Why Choose this Training Course? 

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 Petroknowledge 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 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 Petroknowledge training course is designed to be highly practical and includes hands-on inter-active 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 training course will highlight:


Training Objectives

What are the Goals? 

Participants will have a working knowledge of Upstream Petroleum Contracts and how to apply this knowledge to administering Production Sharing Contracts. 

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

Target Audience

Who is this Training Course for?

This PetroKnowledge 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 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:

Training Methods

How will this Training Course be Presented?

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.

Organisational Impact

Negotiating Upstream Petroleum Contracts with ease will ensure your organization will benefit by:

Personal Impact

Attendees will gain by participation in this training course as a result of:

Daily Agenda

Day One: Introduction and Overview of Upstream Petroleum Contracts

Day Two: Contracting in the Upstream Sector: Ownership and Licensing

Ownership and exploitation of reserves

Host country's legal and regulatory framework and fiscal regime; stabilization

 Host Government’s Role in Upstream (Exploration & Production (E&P)) Agreements

 Day Three: Production sharing contracts (PSC) & Joint Operating Agreements (JOA)

Commercial terms in licensing and concession agreements

(a)  Royalty,  The R factor

(b)  Cost oil

(c) Profit oil

(d)  Taxation

(e) Bonuses, Penalties

Joint Operating Agreements (JOAs)

Day Four: Service Contracts, Farm-In and Farm-Out and Unitization - Risk bearing and Non- Risk Bearing Service contracts

Participation Agreements (Farm-in and Farm-out)

 Unitization and Unit Operating Agreements (UUOAs)

 Day Five: Negotiating Production Sharing Contracts 

Negotiation Simulation Exercise

Negotiation of oil and gas disputes

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© 2018. Material published by Petroknowledge shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


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