Course Overview

The upstream oil and gas sector is a multifaceted industry that demands interdisciplinary engagement. Producing crude oil and natural gas from subterranean rock formations to the marketing outlet necessitates a series of phase operations that cost the running businesses hundreds of millions of dollars. The oil and gas industry, like any other, uses a wide variety of contracts. The requirement to spread economic risks and the dispersed control of oil and gas assets make these contractual arrangements inevitable. Oil and gas companies have employed a variety of contracts to jointly use Oil and gas while dividing up the associated risks and available resources.

What are Upstream Oil and Gas Contracts? Investors in the private sector require the permission of the government of the country where they want to conduct oil and gas exploration and production (E&P) operations on land or in the ocean. Upstream contracts describe the legal, commercial, and operating interactions between oil and gas E&P corporations and the government.

Why are Upstream Contract Management Activities Crucial? Countries with abundant natural resources often export their resources to generate income for national development projects. Many nations achieve this by signing contracts with multinational corporations to extract and export their oil and gas. To maximise the return on investment from a country’s natural resources, the proper contract must be negotiated. Exploration and production (E&P) activities in the oil and gas industry are expensive, dangerous, and technology-intensive. It’s essential to make the best use of limited resources, optimize strategies, costs, and capital, and boost company performance across the board in the E&P industry. This is facilitated by effective Upstream Oil and Gas contract activity.

This Zoe Talent Solutions’ Upstream Oil and Gas Contracts training course is meant to be extremely practical, with practical learning experiential sessions to assist attendees to grasp the actual challenges at hand and the traps to avoid. Knowing global upstream operations is important to comprehending upstream production sharing and joint venture arrangements, and thus, will be covered in the training module. The course will also cover the need and application of digital solutions throughout the lifespan of a project, and learn about integrating, consolidating, expediting, and automating various tasks.

Course Objectives

The upstream Oil and Gas Contracts training course by Zoe Talent Solutions has been designed to achieve the following objectives:

• To gain knowledge of different types of contracts used in the upstream oil and gas sector and ways to interpret them
• To familiarize the participants with the contractual phrases used in upstream oil and gas contracts
• To discover the important terms of the contract and understand how they differ between PSA, maintenance contracts, as well as other forms of agreements
• To learn about the issues and challenges that arise while operating in several jurisdictions
• To get acquainted with the contractor’s duties and privileges
• To work out a strategy for resolving disagreements over upstream oil and gas contracts
• To recognize the significance of risk assessment and management.
• To ensure a successful agreement by mastering the critical skills for effective oil and gas contract negotiation

Training Methodology

The training will utilize the following training methods:

• Lectures by an experienced international specialist to provide a better grasp of the nature of the content
• Use of relevant case studies, practical exercises and business examples
• Interactive discussions that stimulate debate of problems and possible solutions
• Negotiation simulation exercises to obtain a genuine feel for negotiating a PSA contract.
• A well-balanced mix of classroom and hands-on activities.

Like all our acclaimed courses, this program also follows the ‘Do-Review-Learn-Apply’ model.

Organization Benefits

This training course from Zoe Talent Solutions will benefit an organization in the following ways:

• Effective and trustworthy upstream oil and gas operations will be controlled by knowledgeable and skilled individuals
• The organization will be able to develop a comprehensive process that meets international requirements, increasing the company’s ability to fulfil orders from abroad
• Experienced workers will be able to construct effective and advantageous international contracts
• Decreased potential for harm and adequate contingency plans in the event of a crisis, both of which will improve the organization’s standing in the market
• Improved planning and better risk management will result in decreased expenditures
• Streamlined operations made possible by highly automated workflows will aid in cost saving

Personal Benefits

This Upstream Oil and Gas Contract Certification training course will benefit participants in the following ways:

• Gain market-relevant end-to-end awareness and experience of upstream oil and gas activities
• Ability and motivation to assume more responsibilities, such as managing projects from start to finish, will grow, opening doors to better employment opportunities
• With expanded knowledge and expertise, participants will be able to evaluate current systems and processes to see whether further streamlining is possible via the use of technology
• A better understanding of upstream oil and gas operations will enhance the ability to teach and guide other experts

Who Should Attend?

All levels of staff engaged in the management of oil and gas conflicts will benefit from this Upstream Petroleum Contracts training course. It will help people from a variety of professions to realize and comprehend the complexity of conflict resolution. This training course will assist a wide range of professions, but it will be especially beneficial to:

• Advisors and Supervisors of Senior Contracts
• Professional Counselors and Supervisors
• Directors of commerce and industry
• Admins and Controllers of Contracts
• Experts in business, finance, and insurance
• Managers of acquisition
• Contractors, as well as contract engineers serving foreign petroleum firms.
• Individuals in charge of the project and overall management

Course Outline

Module 1: Business of Upstream Oil and Gas:

• Research on efficiency and process improvements
• A Quick Understanding of the Oil and Gas Industry
• Oil and Gas Industry terms
• Upstream Agreements’ Legal Framework

Module 2: The Basics of Contract Law

• Language Applied in the Oil and Gas Sector
• Oil and Gas Industry organization
• Connections between the Oil and Gas Firm
• The Oil and Gas Industry’s Steps
• Legislative Concepts of Oil and Gas Contracts

Module 3: Reserves: Authority and Exploitation

• Main Contract Qualities
• The Oil and Gas Industry’s Commercial Reality
• Collaboration with Resource Owners
• Oil and Gas Holdings
• Contracts for Risk Management Services (RSCs)
• Grant of Rights by the Owner of the Resource

Module 4: Laws and Regulations

• The Framework of the Law and Regulation
• Government’s Function
• Concern about International oil and gas contracts
• Planning
• Contracts relating to exploration and production (E&P)
• Maintenance of Upstream
• Contracts for exploration and production

Module 5: Joint Operating Contracts (JOA) and Revenue Sharing Contracts (PSC) 

• Permitting and franchise agreements
• Service Charges, Financial Relations
• Cash Flow Distribution (PSC)
• Monetary System Comparisons
• Joint Operating Agreement (JOA) and work
• Joint Venture’s Nature, Goals, and Functions

Module 6: Participatory Contracts 

• Farm-ins and Farm-outs Contract
• Farm-out Nature
• The Farm out’s Subject Matter
• Licensed and Protected Interest
• Asset Allocation

Module 7: Unitization and Operational Contracts for Units (UUOAs)

• Unitization: Overview
• In Practically, Unitization
• Permission from the government
• Unitization of International Environmental Areas

Module 8: Arrangements for Production Sharing 

• Cost Associated and Productivity Sharing
• Production sharing agreements with the government
• Local Content Stuff
• Unavoidable Events
• Measures for Adjustment and Renewal

Module 9: Oil and Gas Conflict Resolution

• Negotiation’s Importance in the Oil and Gas Industry
• Competition Negotiation’s Drawbacks
• Partners Engage in Collective Bargaining