This document discusses petroleum contracts and agreements, outlining various types including concessions, production sharing agreements, service contracts, and joint ventures. It describes the advantages and disadvantages of each type of contract for governments and companies. The document also outlines potential risks for governments in the contracting process, such as lack of due diligence or giving too much discretionary power to ministers. Finally, it summarizes Ghana's exploration license award process.
TYPES OF PETROLEUM CONTRACTS AGREEMENT; Product Sharing Contract/Agreement (PSC/PSA); Concession (or Tax-and-Royalty) Contracts; STABILIZATION; EGYPTIAN HYDROCARBON FISCAL REGIME;; Main Differences Concessionary & Production Sharing Contracts (PSCs); Participation/Joint Venture/ Association (or Arrangements); Service Contracts; WHAT CHOICES OF LAW ARE POSSIBLE? Rule of Capture; Law of the Sea Act 77 & the Rule of Capture; KEY ISSUES IN UNITIZATION AGREEMENTS; UNITIZATION CLAUSES; Discretionary Unitization Clauses; Non-Discretionary Unitization Clauses; Cross-border or International Unitization; EGYPT PETROLEUM FUTURE; UNDERSTANDING EGYPT; PRODUCTION SHARING CONTRACTS AND TAX BARRELS; Egypt Production Sharing Contract (PSC); Typical Egypt Development Lease
INTERNATIONAL PETROLEUM CONTRACTS & PRACTICE IN NEGOTIATIONSpetroEDGE
This 5 days course (24-28 August 2015, Kuala Lumpur) will help you develop an in-depth understanding of the legal and contractual framework as applied in the upstream oil & gas industry. It opens with an explanation of the geopolitical forces which shape the modern oil industry and then covers the major technical, legal, financial, economic and fiscal issues that form current E&P agreements worldwide. You will learn the philosophy, evolution and fundamentals of international petroleum contracts.
The class include participants from both NOC’s, IOC’s contractors, which adds further realism to the exercises. The detailed training agenda can be downloaded here: http://bit.ly/1B2zMCL
For more information, email susy@asiaedge.net
Fiscal Risk Advancements in Petroleum ContractsYasir Karam
Study analysis of determination of fiscal risk implemented in several models of petroleum contracts, a study within licensing bid rounds contracting system of Iraq
Former IDS Fellow, Philip Daniel, will explore design principles for taxing extractive industries and touch briefly on renewed challenges from the commodity price outlook, international tax problems and environmental imperatives.
Philip is co-editor and contributor for International Taxation and the Extractive Industries (Routledge, 2017) and for The Taxation of Petroleum and Minerals: Principles, Problems and Practice (Routledge, 2010). Philip worked at the Fiscal Affairs Department of the IMF in Washington DC, 2006-2015.
Phillip's recent advisory work has covered Nigeria, Trinidad and Tobago, South Africa and Uganda. He is now Honorary Professor, School of Social Sciences, University of Dundee in the Centre for Energy, Petroleum and Minerals Law and Policy. Philip was a Fellow of IDS from 1981 to 1994.
TYPES OF PETROLEUM CONTRACTS AGREEMENT; Product Sharing Contract/Agreement (PSC/PSA); Concession (or Tax-and-Royalty) Contracts; STABILIZATION; EGYPTIAN HYDROCARBON FISCAL REGIME;; Main Differences Concessionary & Production Sharing Contracts (PSCs); Participation/Joint Venture/ Association (or Arrangements); Service Contracts; WHAT CHOICES OF LAW ARE POSSIBLE? Rule of Capture; Law of the Sea Act 77 & the Rule of Capture; KEY ISSUES IN UNITIZATION AGREEMENTS; UNITIZATION CLAUSES; Discretionary Unitization Clauses; Non-Discretionary Unitization Clauses; Cross-border or International Unitization; EGYPT PETROLEUM FUTURE; UNDERSTANDING EGYPT; PRODUCTION SHARING CONTRACTS AND TAX BARRELS; Egypt Production Sharing Contract (PSC); Typical Egypt Development Lease
INTERNATIONAL PETROLEUM CONTRACTS & PRACTICE IN NEGOTIATIONSpetroEDGE
This 5 days course (24-28 August 2015, Kuala Lumpur) will help you develop an in-depth understanding of the legal and contractual framework as applied in the upstream oil & gas industry. It opens with an explanation of the geopolitical forces which shape the modern oil industry and then covers the major technical, legal, financial, economic and fiscal issues that form current E&P agreements worldwide. You will learn the philosophy, evolution and fundamentals of international petroleum contracts.
The class include participants from both NOC’s, IOC’s contractors, which adds further realism to the exercises. The detailed training agenda can be downloaded here: http://bit.ly/1B2zMCL
For more information, email susy@asiaedge.net
Fiscal Risk Advancements in Petroleum ContractsYasir Karam
Study analysis of determination of fiscal risk implemented in several models of petroleum contracts, a study within licensing bid rounds contracting system of Iraq
Former IDS Fellow, Philip Daniel, will explore design principles for taxing extractive industries and touch briefly on renewed challenges from the commodity price outlook, international tax problems and environmental imperatives.
Philip is co-editor and contributor for International Taxation and the Extractive Industries (Routledge, 2017) and for The Taxation of Petroleum and Minerals: Principles, Problems and Practice (Routledge, 2010). Philip worked at the Fiscal Affairs Department of the IMF in Washington DC, 2006-2015.
Phillip's recent advisory work has covered Nigeria, Trinidad and Tobago, South Africa and Uganda. He is now Honorary Professor, School of Social Sciences, University of Dundee in the Centre for Energy, Petroleum and Minerals Law and Policy. Philip was a Fellow of IDS from 1981 to 1994.
PRODUCTION SHARING CONTRACTS (By Edwin Kimani & Kate Mavuti)Edwin Kimani
This slides, prepared together with Kate Mavuti (LLB, DipKSL, LLM Oil & Gas) analyses the complexity of production sharing contracts, typically used in the oil and gas industry in Kenya.
A brief paper exploring the contractual tools applied by framers of oil and gas contractors to allocate risks between and among parties to O&G undertakings
PRODUCTION SHARING CONTRACTS (By Edwin Kimani & Kate Mavuti)Edwin Kimani
This slides, prepared together with Kate Mavuti (LLB, DipKSL, LLM Oil & Gas) analyses the complexity of production sharing contracts, typically used in the oil and gas industry in Kenya.
A brief paper exploring the contractual tools applied by framers of oil and gas contractors to allocate risks between and among parties to O&G undertakings
Peak Oil & Peak Everything Lecture at CornellWJMartin
Watch the Presentation Here: http://www.youtube.com/watch?v=0HeEHKJxSA8
Will Martin gave this lecture on April 19th, 2012 to the students of Professor Bill Schulze's Sustainable Business class in Cornell University's school of Applied Economics and Management.
The lecture covers peak oil, the economics behind peak oil, the current state of our energy markets, the substitution to unconventional oil that is taking place and the future of "peak everything".
For more, visit http://www.peakoilproof.com/
"Peak Oil - Myth or Reality?" by Jean Laherrère - ASPO FranceNicolas Meilhan
The term Peak Oil was created in 2000 after Jean Laherrère and Colin Campbell wrote an article in 1998 in Scientific American which title was "the End of Cheap Oil".
This paper was ignored until 2005 when oil price reached 50$/b anf fully accepted in 2008 when 140 $/b was reached. With the burst of shale oil, many papers have been published on the "Peak Oil Myth" and the fact that the USA would become energy independent thanks to the shale oil & gas revolution.
However the oil production peaked in many countries and the end of cheap oil is more than ever a reality that will strongly impact our economies. New oil projects with higher extraction costs require $100/b+ oil price to be profitable while oil demand (and GDP) contracts when oil price surpasses $120/b !
Explicación amena y sencilla, en forma de cómic apto para todos los públicos, de los mecanismos y perversiones del mercado en el capitalismo neoliberal.
This presentation is for those who are very new to Powerpoints and want to learn the art of making effective PPT's. Also the idea behind making a module, per say, is important and this PPT describes the parameters on which a Basic Training Module can be built. These parameters will help the new comers to get an Idea of how to prepare Training Modules
BALDVIN BJÖRN HARALDSSON, BBA LEGAL
IGC 2018 - Breaking the Barriers
The 4th Iceland Geothermal Conference will be hosted in Iceland in April 2018. The conference offers an in-depth discussion of the barriers that hinder development of the geothermal sector and how to overcome them. It also focuses on the business environment through three separate themes: vision, development, and operations. Having established itself as an important regular conference of the international community, IGC 2018 brought together more than 600 participants from 40 countries from around the world.
The 4th Iceland Geothermal Conference will be hosted in Iceland in April 2018. The conference offers an in-depth discussion of the barriers that hinder development of the geothermal sector and how to overcome them.
The 3 day International Oil & Gas Contracts course is a practical and interactive training program that gives managers – in law firms and in oil companies – a thorough knowledge of how to prepare contracts in the various different markets of the global oil industry.
This two day seminar will provide you with drafting tips with regard to some thorny issues germane to the industry such as profit sharing, take or pay and related issues, as well as more general points which have particular application in the oil and gas sector, such as choice
of law, force majeure, hardship and exclusion clauses. The seminar further deals with issues relating to disputes, providing you with the tools and techniques to ensure you have a thorough understanding of the negotiation and dispute management process of various upstream oil and gas agreements.
2. PRESENTATION OUTLINE
• Petroleum contract/agreement
• Type of contracts ; merits/ demerits
• Risk associated with the process of contracting
• Exploration license award process in Ghana
3. PETROLEUM CONTRACT /AGREEMENT
• According to Revenue Watch Institute,
“Contracts detail the commitment between
governments and companies that determine
the net benefits derived from resource
extraction”
• Petroleum contracts takes many different
forms
4. TYPES OF PETROLEUM CONTRACTS
1. Concessions ;
• under this system, a company acquires a piece
of land from land owners(government/state)
with the hope of finding petroleum resources.
This system is common in the United State.
Under this system, companies have exclusive
right to prospect for petroleum resources on
the defined land demarcated in contract
documents.
5. Advantages /Disadvantages
advantages
• For governments, it is more
straight forward than other
types
• Less professional support in
the contracting
process/negotiation
• Fees paid to government is not
affected in case of no
discovery or oil discovered is
not in commercial quantity.
• Contractor carries risk of
exploration
Disadvantage
• Contractors /companies are
careful when bidding under
this system, due to potential
high risk ( especially if it not
proven data)
6. Production sharing
agreements/contracts(PSC/PSA)
• Under this system, the ownership of potential
resources is not vested in
contractors/companies but the state.
• Contractors extract oil and gas resources for
the state
• This system was first used in Indonesia as a
move towards resource nationalism among
resource rich under developed countries.
7. PSA/PSC
Advantages
• For governments,
contractors bear
operational risk in
exploration and production
• Governments shares
potential profits without
making initiation
investment
Disadvantages
• This system needs technical
expertise in contract
negotiation period. Experts
in
• environmental, financial,
commercial, and legal
8. SERVICE CONTRACTS
Under this system contractors do not have rights to
resources discovered.
Contractors are paid for services delivered to the
government or the state in the petroleum value
chain
Expertise that companies deliver to government
include, exploration using modern methods,
transportation, production and technologies used,
consultancies ( exploration data etc) refining
10. JOINT VENTURE
• This is involves the state represented by
national oil company negotiating and
managing state carried interest
• Contractors are given the right to explore,
develop, produce and sell oil
11. JOINT VENTURE
Advantages
• For governments, they can
count on the expertise of
international oil companies
in decision making
Disadvantages
• It does not have accepted
format, hence negotiations
take long
• Experts are also required
during negotiations
• Cost is shared among
parties
• Liability and risk is shared
• Ethical issues, conflict of
interest of the state
12. POTENTIAL RISK
• For the government, the potential risk areas are;
• Inability of the negotiation team to do due diligence
during negotiation of PA
• During formulation of Petroleum Bills,
parliamentarians need to be careful of foreign
influence especially international oil companies
• Giving too much discretionary powers to petroleum
minister by the law
• Adopting administrative system of contracting instead
of open contracting
• The Fiscal arrangements and governments take( royalty
waivers, taxes and percentage of government
13. EXPLORATION LICENCE AWARD
PROCESS
• Applicant letter of interest to the Minister
• Minister notifies Petroleum
Commission(Applicant invited)
• Applicant applies for block
• Evaluation committee reviews application(
MOE, GRA , AG Department, GNPC
• Negotiation of PA
• Draft PA prepared
14. Continuation of process
Relevant ministers consulted on draft agreement
Minister sends draft agreement to cabinet for
approval
Minister sends draft agreement to parliament
for ratification
PA becomes effective on the date of ratification
Editor's Notes
This system was used very well in colonial period to take advantage of colonies
Contractors honour their fiscal obligations such as royalties fees taxes
Ghana is using this system.
In Ghana’s case, GNPC was a regulator and a national oil company.
It is already happening in Ghana where some MPS are influence to serve a different agenda apart from Ghana, in Algeria their petroleum law demands that contractors give 51% state to the state, this fiscal package is not attractive to investors, a review suggested.
