Production Sharing Agreements (PSA) and Production Sharing Contracts (PSC), which result from an agreement between the governments and contractors, construct a complex framework of rules defining the relationship between the two parties in regard to oil and gas activities. The PSA/PSC contracts present operational, financial, and compliance risks for both parties that need to be systematically identified, assessed, and controlled. To assist with this, Imperial Corporate Training Institute is offering a PSA/PSC Contract Risk Assessment & Audit Training Course that will give participants a detailed, structured understanding of the types of risks involved with PSA/PSC contracts and the use of effective contract audit methods in the mitigation of these risks.
The course provides a hands-on approach for participants to learn about the practical application of risk assessment and contract audit within the PSA/PSC environment, including issues such as cost recovery methods, profit oil (the share of profit that an upstream oil and gas contractor is entitled to receive), joint venture exposures (the risks that can arise through joint ventures), and regulatory compliance. Additionally, participants will receive practical guidance on identifying and evaluating potential contract vulnerabilities, assessing financial and operational risk exposure, and performing structured contract audits consistent with international best practice standards. Through integrating legal, financial, and operational perspectives, participants will gain the confidence to assess PSA/PSC contract performance, enhance governance, and enhance the transparency of reporting on behalf of upstream oil and gas projects.
Objectives
By the end of this training course, participants will be able to:
- Gain insight into how the Oil and Gas Industry Worked.
- Implement Analytical Processes to Evaluate Contracts, Funds and Operations.
- Review Recovery of Expenses and Sharing of Profits for Risk Assessment.
- Develop a Process of Auditing Contracts Based on the Various Provisions Found in the Contracts.
- Recognise Compliance Risks Associated with Government Regulations and Fiscal Requirements.
- Determine Risk to Joint Venture and Partners Associated with the Contracts.
- Examine Controls and Governance Systems Supporting Contract Administrations.
- Utilise Results of Audit Work to Develop a Strategy for Reducing Risk.
- Encourage Transparency, Accountability and Regulatory Compliance in Upstream Contracts.
- Build Capability to Enhance Management of PSA/PSC Risks Throughout Project Completion.
Target Audience
This training course is designed for professionals involved in managing, auditing, or overseeing PSA/PSC contracts within the oil and gas sector, including:
- Contract managers and contract administrators
- Internal and external auditors working in oil and gas projects
- Finance and accounting professionals involved in upstream reporting
- Risk management and compliance officers
- Joint venture and partnership managers
- Legal advisors and contract specialists
- Government and regulatory authority representatives
- Project managers in upstream oil and gas operations
- Professionals responsible for cost recovery and financial controls