Negotiation of an Exploration/Production Contract IFP Training

Projects The Project .What is a project? .The evaluation of projects .Classifying projects .Project trajectory, from the initial concept to project implementation .Project management after contract signing From inter-party cooperation to legal commitments . Cooperation is crucial . The inevitable legal dimension . Contractual security From evaluation to negotiation . two very distinct objectives . synchronizing evaluation and negotiation

The Project

.What is a project?

.The evaluation of projects

.Classifying projects

.Project trajectory, from the initial concept to project implementation

.Project management after contract signing

From inter-party cooperation to legal commitments

. Cooperation is crucial

. The inevitable legal dimension

. Contractual security

From evaluation to negotiation

. two very distinct objectives

. synchronizing evaluation and negotiation

Negotiation Plan The negotiation . A definition of negotiation . An operational typology: competitive and cooperative negotiations The negotiation plan . Preparing a negotiation plan . Distinguishing fundamental elements . Defining the objectives and the issues for negotiation . Determine negotiation strategies (competitive vs cooperative)

The negotiation

. A definition of negotiation

. An operational typology: competitive and cooperative negotiations

The negotiation plan

. Preparing a negotiation plan

. Distinguishing fundamental elements

. Defining the objectives and the issues for negotiation

. Determine negotiation strategies (competitive vs cooperative)

Negotiation Plan (1/3) Different Stages in the development of a negotiation plan Identify the key issues for negotiation - the issue - the context - the actors - the stakes - the power Work schedules: - the work schedule in relation to the basic negotiating framework : SWOT -studying the other party

Different Stages in the development of a negotiation plan

Identify the key issues for negotiation

- the issue

- the context

- the actors

- the stakes

- the power

Work schedules:

- the work schedule in relation to the basic negotiating framework : SWOT

-studying the other party

Negotiation Plan (2/3) 2. Defining the Objectives and key issues for the negotiation the strategic objective key negotiation issues 3. Determining the strategy complementarities of objectives the degree of durability of the relationship the balance of power determining the negotiation strategy (cooperative/competitive) 4. Developing possible project scenarios the basic scenario alternative scenarios 5. Prioritizing Issues ranking of key negotiation issues assigning values to key negotiation issues

2. Defining the Objectives and key issues for the negotiation

the strategic objective

key negotiation issues

3. Determining the strategy

complementarities of objectives

the degree of durability of the relationship

the balance of power

determining the negotiation strategy (cooperative/competitive)

4. Developing possible project scenarios

the basic scenario

alternative scenarios

5. Prioritizing Issues

ranking of key negotiation issues

assigning values to key negotiation issues

Negotiation Plan (3/3) 6. Possible areas of agreement positioning during negotiations possible agreement zone (PAZ) 7. The scenario framework 8. The areas of negotiation 9. Expected course of successive phases techniques to structure key issues tactics for argumentation negotiation teams

6. Possible areas of agreement

positioning during negotiations

possible agreement zone (PAZ)

7. The scenario framework

8. The areas of negotiation

9. Expected course of successive phases

techniques to structure key issues

tactics for argumentation

negotiation teams

Frameworks (1/5 ) SWOT Us Them Strengths Weaknesses Opportunities Threats

Frameworks (2/5) Objectives and Issues Complementary Divergent Objective Objective Issue n° 1 Issue n° 2 Issue n° 3 Issue n° 4 Issue n° 5 Issue n° 6

Frameworks (3/5) Value Scale Negotiation Issues Value scale of issues 1 2 3 4 Us Them

Negotiation Positions (1/4) Buyer PAI buyer PO PR Buyer PR seller PO PAI seller Seller

Negotiation Positions (2/4 ) Buyer PAI buyer PO PR buyer PR seller PO PAI seller Seller Possible Agreement Zone (PAZ))

Buyer PAI buyer PO PR buyer Seller PO PR seller PAI seller Restricted PAZ Negotiation Positions(3/4)

Negotiation Positions(4/4) Buyer PR PR 1 buyer (MAX) PR 1 seller (MIN) seller Negative PAZ

Frameworks (4/5) Informations Us Them Obtain Give Filter through Hide

Frameworks (5/5) Complete Scenario Framework Value of issues Us Them Technique Negotiation issue (Issue) Us Them Us Them Us Them Us Them (Issue) (Issue) (Issue)

Negotiation process Concessions and values of corresponding points (values of 3, 2, and 1) Techniques of structuring issues Circumstance and moments were concession intervenes Remarks Them Us