ADVANCED SKILLS

Oil and Gas: Modeling Upstream Concession and Production Sharing Agreements

For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.

Course details

Introduction to Upstream Fiscal Regimes

This section will allow delegates to understand the 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 regimes. The topics will be illustrated through working through a generic model (instructor-led) and then delegates will practise 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 allowance 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 practise 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 materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

  • e-binder
  • laminated summary sheets
  • 24/7 access to DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

“It’s great to have access to the AMT online platform. I found the videos and quizzes really useful to refer back to after my public course. The videos in particular were simple and easy to understand.” ~ analyst, private equity firm

Virtual Classroom

Who should attend the course?

  • 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

View video to get a flavour of the course

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. For an example of the technical requirements of for our Virtual Classrooms click here.

Course trainers

Prerequisite