Economic Aspects of Production Sharing Contracts

Explore and analyse the financial structure of upstream production sharing contracts.

This three-day course reviews the upstream economic aspects of Production Sharing Contracts (PSCs). It describes in detail the financial structure and mechanisms of PSCs across the world and the economic and value implications of the various terms. The course is punctuated with a number of worked examples and case studies taken from actual contracts in the global oil industry.

The course is designed for those working in the upstream industry who are not familiar with PSCs and who require either a working or practical knowledge of the financial mechanics and economic aspects of the contracts. Whilst it is suitable for delegates from all technical and commercial disciplines, some background knowledge in upstream economics would be an advantage.

Course participants will:

• Investigate cost recovery
• Understand profit sharing
• Learn about bonuses and bonus calculations
• Examine sliding scale fiscal mechanisms
• Identify taxation liability and allowances
• Study ring fence calculations and examples
• Analyse and discuss the economics of PSCs

Course Dates