Bridging Petroleum Industry Value Chain Contractual & Fiscal Terms - An Analysis of Global Practices & Harmonization of Nigerian Fiscal Regimes Under PPT & PIA

Course Description

This course evaluates petroleum economic fundamentals that underlie optimal E&P investment decisions, strategy, profitability, risk and uncertainty. The course also analyses oil and gas fiscal regimes underlying petroleum exploration and production operations worldwide with special attention to Nigeria. Flowing from the above and adopting a practical and hands-on approach, this course presents how the economic value of oil and gas ventures and businesses can be determined, and used in decision-making and crafting strategy. Furthermore, the course explains why global oil and gas prices, international fiscal and taxation policy, and environmental regulations are important in petroleum E&P business decisions and in corporate strategies. With inputs from industry experts, this unique and insightful course also covers a comprehensive comparative analysis of global practices in upstream sector contractual and fiscal regimes with special reference to Nigeria’s transition from PPT to PIA – and how to reconcile the resultant royalty gaps in its implementation with a view to eliminating double taxation. Finally, our experienced facilitators will roll out this course using an interactive practicum on the use of spreadsheet modelling tools to manage risk and uncertainty in the oil and gas business. Facilitators are, therefore, required to attend the program with their computers/laptops. These personal computers should be Microsoft Office enabled.

Course Objectives

• Understand the importance of economic decision variables such as oil and gas prices, reserves, production profiles, taxation and fiscal policies, and the environment in petroleum exploration and production decisions.
• Bridge and reconcile fiscal and royalty issues associated with the transition from PPT to the PIA regime.
• Learn and apply principles of petroleum economics and the commonly used economic decision methods to facilitate the ability of E&P business to generate profit and grow business.
• Calculate several key indicators from the stream of net cash flow.
• Understand approaches to qualify uncertainty and risk in petroleum business decisions using spreadsheets.
• Set up personal economic models.
• Discuss terms like NPV, ROR, Hurdle Rate, Real Rate, Mid-Year Adjustment, Money-of-the-Day, etc.
• Understand the risks in projects and tools to handle these risks.
• Describe contract terms and conditions.
• Gain practical application of knowledge through designed exercises.

For Whom

• CEOs and Directors
• Senior and Middle-Level Managers
• Planning, Operations and Forecast Managers
• Supply Chain and Logistics Executives and Managers
• Oil Service Operators in both Up and Down Stream
• Relevant Stakeholders

Requirements

• Participants are expected to attend with their laptops.
• Course involves lots of hands-on and individual practical exercises.

Course Takeaways

• Course manuals including all examples of Excel files.
• Free future assistance for Excel/fiscal regime/financial modelling queries.