About this Training Course

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

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