Oil and Gas: Modeling Upstream Concession and Production Sharing Agreements (1 day)

AMT Training

Course summary

Professional Training

1 day

650 GBP

Full time

AMT Training

London

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London

650 GBP

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Course description

Introduction to Upstream Fiscal Regimes

This section will allow delegates to understand main components and differences between different upstream fiscal regimes.

Modeling a Concession Agreement

This section will allow delegates to learn how to evaluate and model royalty/taxation regime. The topics will be illustrated through working through a generic model (instructor led) and then delegates will practice the concepts with a case study.

Modeling a Production Sharing Agreement

This section will allow delegates to learn how to evaluate and model PSA/PSC The topics will be illustrated through working through a generic model (instructor led) and then delegates will practice the concepts with a case study.

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Suitability - Who should attend?

New hires who have joined the firm late and missed the in-house program
Individuals looking to fill a knowledge gap
Experienced bankers looking to refresh their technical skills
Teams employed in financial strategy roles from non-banking corporations
Graduates preparing to interview for a role in the finance sector
Students at business school and looking for a career in finance

Outcome / Qualification etc.

Introduction to Upstream Fiscal Regimes Learning Outcomes

Royalty/tax system
Production sharing contracts/production sharing agreements
Risk contracts
Technical service agreements

Modeling a Concession Agreement Learning Outcomes

Cash flow components under royalty (concession) regime
- Revenue: production profile, commodity prices and price differentials
- Non fiscal outflows: capex, opex, abandonment
- Fiscal outflows: royalty, rentals, bonuses, income tax (and related tax allowanced for depreciation and tax loss carried forward)
Economic limit adjustments
Financial indicators: IRR, breakeven, maximum exposure, NCF per barrel, NPV per barrel, profit to investment ratio (undiscounted and discounted basis. real vs. nominal cash flows)
Contractor ‘take’ vs. Government ‘take’
DCF valuation for the field
Case study: European tax/royalty field (a hypothetical example)
Ring fencing vs. consolidation

Modeling a Production Sharing Agreement Learning Outcomes

Royalty
Cost Oil
Profit Oil
Abandonment costs in PSC
DCF valuation for the field
Economic limit adjustments
Financial indicators: IRR, breakeven, maximum exposure, NCF per barrel, NPV per barrel, profit to investment ratio (undiscounted and discounted basis. real vs. nominal cashflows)
Contractor ‘take’ vs. Government ‘take’

About provider

AMT Training - Financial Modeling Courses

For over 20 years we have been equipping analysts and associates with core skills for banking and finance. Our clients include the top ten investment banks and some of the biggest private equity firms in the world. With offices in...