Imperial Corporate Training Institute has developed an Advanced Financial Analysis for Production Sharing Agreements (PSA) and Production Sharing Contracts (PSC) Course that is industry oriented. It will teach a detailed understanding and practical application of financial analysis related to oil and gas contracts, including PSAs and PSCs. This type of contract provides the framework for Oil and Gas Operations at the exploration and development stage around the world. PSAs/PSCs are the basis for allocating costs, revenue, profit, and risk between governments and oil companies.
The course provides a structured, analytical, and commercial approach to understanding how PSA/PSC contract terms affect the economic feasibility, profitability, and long-term value of a Project. The course includes both a conceptual framework and the application of PSA/PSC financial analysis.
By taking this course, participants will have developed skills in interpreting, evaluating, and modeling the financial mechanisms of PSAs/PSCs under a range of circumstances (commercial, technical, and fiscal). The course will place a strong emphasis on applying the principles of financial analysis to real-world contracts. Students will learn how the mechanisms for cost recovery, profit gas/oil share, taxation and royalty regimes, and fiscal incentives interact within the oil and gas industry. After completing the course, students will be able to critically analyze the financial structure of the PSA/PSC, determine the viability of projects, and support the informed decision-making process in negotiations, audit, and strategic planning within the oil and gas industry.
Objectives
By completing this PSA/PSC Contract Financial Analysis Training Course, participants will be able to:
- Learn about the key principles and structures of PSA and PSC frameworks as applicable to the oil and gas (O&G) sector.
- Utilise and apply a broad range of financial analysis techniques to assess O&G contracts.
- Examine the mechanisms for recovering costs incurred and assess their financial implications.
- Evaluate Profit Oil/Profit Gas Allocations under different PSA and PSC models.
- Examine the fiscal terms of O&G contracts which include royalties, taxes and the government’s share of profit oil/gas (i.e., Government Take).
- Utilise critical financial indicators (e.g. NPV, IRR and Payback Periods) to determine project economics.
- Identify risks and sensitivities associated with the financial aspects of O&G contracts.
- Conduct a comparison of the fiscal regimes associated with PSA and PSCs in different countries.
- Provide significant financial support for the negotiation, audit and compliance of PSA and PSC contracts.
- Support the development of sound decisions regarding investments and contract management in upstream O&G projects.
Target Audience
This course is specifically designed for professionals involved in financial, commercial, contractual, and strategic roles within the oil and gas industry, including:
- Petroleum economists and financial analysts
- Contract analysts and commercial managers
- Finance and accounting professionals in upstream oil and gas
- Government officials and regulators involved in PSA/PSC oversight
- National oil company (NOC) professionals
- International oil company (IOC) staff
- Internal and external auditors focusing on oil and gas contracts
- Legal and advisory professionals working with oil and gas contracts
- Energy consultants and project evaluation specialists
- Professionals seeking advanced expertise in oil and gas contract financial analysis