Economic aspects of Production Sharing Contracts

Who should attend:

The course is designed for those personnel working in the upstream industry not familiar with Production Sharing Contracts and requiring either a working or practical knowledge of the financial mechanics and economic aspects of the contracts. It is suitable for delegates from all technical and commercial disciplines. It is recommended that delegates have a working knowledge of petroleum economics prior to attending.

Overview:

This two-day course gives an introduction to the upstream economic aspects of Production Sharing Contracts (PSC's). It describes in detail the financial structure and mechanism of PSC's across the world and the economic and value implications of the various terms. The course is punctuated with a number of worked examples and case studies taken from actual contracts in the global industry.

Content:

This course will cover the following:

• Learn about the history, evolution and structure of PSC's
• Investigate cost recovery
• Understand profit sharing
• Learn about bonuses and bonus calculations
• Examine sliding scale fiscal mechanisms
• Identify taxation liability and allowances
• Study ring fence calculations and examples
• Analyse and discuss the economics of PSC's
• Construct a production sharing contract spreadsheet model, derive relevant economic metrics and draw conclusions to aid decision-making