This five-day workshop is an ideal program for those representing the interests of host countries who wish to learn the critical aspects of negotiating and managing successful Upstream Petroleum Agreements and how they should participate in the management of the Upstream project. The course is divided into three parts: Part I is a series of lectures in which participants will learn the foundations and basic rules of International Law and review the most used contracts in the industry; Part II is a series of lectures and practical assignments allowing the participants to learn the “Getting to Yes” Negotiating Process; and Part III is a series of interactive sessions where teams of participants, playing the role of either the government or the contractor, will actively negotiate and achieve win-win outcomes for the most often negotiated issues. This challenging learning process allows participant to internalize the essential aspects of both the Upstream Petroleum Agreements and a truly Effective Negotiation Process.
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During this program the participants will:
This intensive program includes a practical integration of lectures, group discussion, and negotiating sessions. Using a set of model agreements, participants, working in teams, will analyze the agreements, identify and negotiate key issues with their counterparts attempting to reach a resolution of the issues.
This program is ideal for the government’s resource managers who wish to negotiate Upstream Petroleum Agreements, manage their implementation or administer problems related to key issues. Attendees will obtain an overview of today’s major upstream agreements, learn how the government specialists need to participate throughout the project development stages, and how to apply a positive negotiation process to resolve the major IOC-government key issues that may come up during the life of these agreements.
Commercial law, how laws are organized: civil law, common law, topical laws and regulations, enforceability, difference between a law and a fact question, legal analysis. International petroleum law basic principles.
How offers are made, bid solicitations (RFPs), terms. How acceptance is made, varying terms, cultural and language issues in international contracting. Written contracts– examination of important clauses. Oil and gas industry examples.
Production sharing, tax and royalty, service contract, hybrid. Special problems contracting with a government authority, police power and expropriation, unilateral changes, sovereign immunity, stability clauses.
What they are and how they work, outline of provisions, most important issues, discovery vs. commercial discovery, standard of performance, project governance (plans, budgets, meetings, voting, disagreements, transfers, withdrawal, disputes, accounting). Unitization: concept and five major issues.
Asset Sales vs. Stock Sales, Sale of partial interests in Host Government Contracts, Structuring: Cash vs. Drill to Earn, Carried Interests and hoe they are repaid, Consent Rights, Preemptive Rights, Right of First Offer.
Underlying motivations, needs and concerns, fears and aspirations, understand your interests, understand the interests of the other side.
Inventing options to meet underlying interests; option as a possible agreement but not a commitment; obstacles that inhibit the invention of options.
Making negotiation a joint search for independent standards, use standards to persuade and protect, distinguish which standards are appropriate.
Inventing options to meet underlying interests; option as a possible agreement but not a commitment; obstacles that inhibit the invention of options.
Making negotiation a joint search for independent standards, use standards to persuade and protect, distinguish which standards are appropriate.
Most upstream energy project agreements consist of issues which are 80% non-controversial and 20% the subject of most of the negotiations. The workshop sessions focus on those key negotiated issues from the point of view of the interests of host countries or minority participants in energy joint ventures. Through the role playing process teams will be given key issues to negotiate in a classroom setting. Discussion will focus on suggestions for handling and resolving these issues.
Production Sharing Contracts (PSC)
Joint Operating Agreements (JV Agreements)
Transfer Agreements (Farm-out Agreement)