Overview

The Production Sharing Contract is perhaps one of the most fundamental forms of contract to be found in the International Oil and Gas Industry. Nevertheless, it is without a doubt one of the most centrally significant legal agreements to be found. The purpose of any contract is to establish what the rights; duties and obligations of the parties are in terms of both performance and conduct. PSC’s normally involve the granting of certain rights (exploration and production) from a Host Government to an International Oil Company (IOC) in order to search for and develop hydrocarbon resources. They are high value; represent a significant investment (for the IOC); tend more towards the longer term and often have a higher risk profile.  

This course has been specifically designed to provide the delegate with a clear insight into some of the central issues and mechanisms that define a PSC. The course is an immersive experience with case studies and exercises throughout. The delivery is through open; fluid dialogue – class discussion and knowledge sharing. 

Who Should Attend

• Commercial departments
  
• Legal personnel
  
• Contract managers/engineers/administrators
  
• Anyone else wanting to gain insight/familiarizes themselves with PSC’s

Key Learning Objectives

• Understand why a PSC is of central importance to the International O&G industry
  
• Grasp what is meant by the term ‘Contract Area’
  
• Become familiar with the time elements of a PSC
  
• Know what a relinquishment is and how they operate
• Understand the Minimum Exploration Commitment
  
• Become aware of how the cost recovery process operates
• Gain an enhanced insight into insurance; liabilities and indemnities
• Grasp the meaning and operation of contractual novation and assignment
  
• Become familiar with the concept of Force Majeure and understand why it is very important to PSC’s
  
• Know the centrally important aspects of international commercial arbitration

Enquiry Form