Managing Resource Access and Joint Ventures

This is one of the industry masterclasses.

Meticulously designed to provide a deep understanding of commercial challenges in the oil and gas sectors and the energy transition, attendees are equipped with issue frameworks which are used in a progressive case study approach where they represent the interests of various parties involved.

This hands-on experience allows exploration and discussion of the issues in negotiation key commercial terms and fosters a “learning by doing” approach.

This enables attendees to apply this experience directly to their existing roles or in seeking new roles in industry.

The Masterclasses are limited to less than 20 participants.

Designed for professionals currently in technical, commercial and legal roles involved in contract negotiation and management of exploration, appraisal, development, transportation and sales contracts within the oil & gas industry and those involved in the energy transition, particularly the integration of gas and renewable power generation.

The masterclasses also enable postgraduates completing their masters in energy economics and law to gain rapid insight to the commercial issues in today’s industry.

Purpose

Develop an understanding of the commercial issues in negotiation of resource access agreements and the use of joint ventures to diversify risk across oil & gas companies’ portfolios.

Develop the ability to read, analyse and communicate the key provisions within these agreements effectively within the business.

Description

• Underlying drivers of exploration risk and development volume uncertainty in shaping access and joint venture contracts.
• Government objectives in resource management and how they are managed: Resource access contracts allocation risk and reward by means of contractor role and fiscal regime; the underlying drivers in the choice of production sharing or concession contracts; and approach to award. Case Study Stage (i) development of government resource policy
• Alternative joint venture structures and why unincorporated joint ventures predominate in the upstream. Establishes a commercial framework in understanding the provisions of joint venture contracts addressing alignment, decision-making, financial management, enforcement and exit.
• Alignment provisions in the role of operator, rights & duties, HSE, liabilities, intellectual property and public announcements.  Decision making in committee structure, exploration & appraisal, development, production and decommissioning work programmes & budgets, majority and supermajority voting structures, and the purpose of sole risk and non-consent provisions. Case Study Stage (ii) & (iii) involve negotiation to form a joint venture to bid for exploration licence award and the voting structure and pass-mark.
• Managing Financial management, Enforcement and Exit considerations, and the impact on these if the state (NOCs) participates in the joint venture. Case Study Stage (iv) negotiation of government carries.
• Developing techniques to read, analyse and communicate the provisions of a joint venture agreement using obligation registers and flowcharts. Case Study Stage (v) identifies planning obligations and developing flow charts to analyse default, exploration and development sole risk.
• Discussion of how the joint venture contract can be used to plan and integrate business in oil & gas joint ventures.  Case Study Stage (iv) integrates the work programme, sole risk exploration and development provisions to develop an Agreement Plan.

Facilitators

Working together since 2008, Norrie and Jon have created and delivered over 200 courses for Major & Independent Oil Companies, Government bodies and Universities.