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Public Course

Oil and Gas: Modeling Upstream Concession and Production Sharing Agreements

Regular price $850.00 USD
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  • What you'll learn
  • Course Information
  • What is a Virtual Classroom
  • What you'll learn
  • Introduction to Upstream Fiscal Regimes

    This section will allow delegates to understand main components and differences between different upstream fiscal regimes.

    Learning outcomes

    • Royalty/tax system
    • Production sharing contracts/production sharing agreements
    • Risk contracts
    • Technical service agreements

    Modeling a Concession Agreement

    This section will allow delegates to learn how to evaluate and model royalty/taxation regime. The topics will be illustrated through working through a generic model (instructor led) and then delegates will practice the concepts with a case study.

    Learning outcomes

    • Cash flow components under royalty (concession) regime
      • Revenue: production profile, commodity prices and price differentials
      • Non fiscal outflows: capex, opex, abandonment
      • Fiscal outflows: royalty, rentals, bonuses, income tax (and related tax allowanced for depreciation and tax loss carried forward)
    • Economic limit adjustments
    • Financial indicators: IRR, breakeven, maximum exposure, NCF per barrel, NPV per barrel, profit to investment ratio (undiscounted and discounted basis. real vs. nominal cash flows)
    • Contractor ‘take’ vs. Government ‘take’
    • DCF valuation for the field
    • Case study: European tax/royalty field (a hypothetical example)
    • Ring fencing vs. consolidation

    Modeling a Production Sharing Agreement

    This section will allow delegates to learn how to evaluate and model PSA/PSC. The topics will be illustrated through working through a generic model (instructor led) and then delegates will practice the concepts with a case study.

    Learning outcomes

    • Royalty
    • Cost Oil
    • Profit Oil
    • Abandonment costs in PSC
    • DCF valuation for the field
    • Economic limit adjustments
    • Financial indicators: IRR, breakeven, maximum exposure, NCF per barrel, NPV per barrel, profit to investment ratio (undiscounted and discounted basis. real vs. nominal cashflows)
    • Contractor ‘take’ vs. Government ‘take’
  • Course Information
  • 9.00am - 5.00pm GMT

    1 day (non-exam)

      • What is a Virtual Classroom
      • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

          Pre-Requisites

          Who should attend?

          New hires who have joined the firm late and missed the in-house program

          Individuals looking to fill a knowledge gap

          Experienced bankers looking to refresh their technical skills

          Teams employed in financial strategy roles from non-banking corporations

          Graduates preparing to interview for a role in the finance sector

          Students at business school and looking for a career in finance

          What to use

          You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

          Ask our trainers

          If you have any questions about the course content, you can email our experienced trainers for any further questions

          Contact a trainer

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