Production Sharing Contracts and Models

Course Length: 5 days

Course Description

Investments are, by their nature, risky. Market conditions and the constantly increasing pressure to competitively execute a program of investments safely, on time, within budget, with efficiency, and per specifications vis-à-vis the desire for sustained success have necessitated the need to strategically structure, lead, govern and deliver resource investments on promised metrics or key performance indicators that governments and businesses approve these days.

Strategy is a plan of action or policy designed to achieve a significant investment goal or arrive at a far-reaching solution. Consequently, strategic leadership encompasses the relentless planning, organizing, monitoring, analysis and appraisal of what a business needs to meet its set goals. In the same vein, Governance is all the processes of defining expectations and ensuring adherence, usually undertaken by a government, business, association, market, etc. in an organized setting.

Governments, business leaders, portfolio and PMO managers need to know the governance approaches and techniques for effective management of their ministries, departments, and/or organizations. This training provides insight into practical and relevant governance of individual projects, groups of projects (like programs or portfolios) and board level governance of projects, including cost management and production sharing in an Oil, Gas and/or Mining JV environment. It is based on current research results and builds on many years of experience in implementing project governance structures in organizations.

This course zeroes in on the significance of strategic governance in successful Joint Venturing, Cost Management and Production Sharing, including the symbiotic relationship amongst business leadership, program leadership, decision-making, portfolio success and, ultimately, sustained business success. It combines sound academic theories and relevant industry experience to inform the participants of the global governance and governmentality best practices, and how effective and efficient governance drives business success, even in a JV environment. Case studies on recent resource investments success and failure factors and the inferences therefrom will be rigorously assessed, yet addressed in a succinct, albeit logical and focused manner.

Who should Attend?

This course is suitable for a wide range of leaders, including:

• C-suite Leaders
• Operations Leaders
• Project Leaders
• Business Development and Strategy Managers
• Resource Industry/Ministry Officials & Policy Initiators
• Resource Investment Planners, Analysts and Economists

What you will Learn:

• Comprehend strategy and strategic management fundamentals
• Understand program management office and program management competency development framework
• Distinguish between business leadership and program leadership
• Understand the principles of governance as they apply in resource-centric environment
• Learn about the governance paradigms and their consequences for projects and organizations
• Understand Joint Venturing and types
• Understand Cost Planning, Risk Assessment, Estimating, Controlling and Forecasting
• Appreciate the Production Sharing and contract types
• Workshop different approaches to governmentality in organizations and their relationship with project and organizational success
• Use tools and techniques to assess and profile governance and governmentality in the own organization
• Understand Operating Excellence Framework for Capital Investment Management
• Reflect on some Mega Resource Investments Governance Learning’s
• Contribute to business success in the workplace

How will this Training Course be Presented?

This course will be highly interactive. Following an introductory session, short concept-centric sessions will be provided followed by participants being given the opportunity to practice the learning’s in the preceding session, using case studies, illustrations of leadership from the real world will be provided and participants will be encouraged to contribute examples and illustrations from their own experiences.

Course Outline:

Day One: Getting Started

• Resource industry overview: Oil, Gas, or Mining
• Investments Work Planning across a project life cycle
• Key uncertainties over a field life
• Strategy and strategic leadership/management fundamentals

Day Two: Governance, Governmentality and Joint Venturing

• Governance versus management
• Definitions, principles, theories, what obtains in the workplace, etc.
• Levels of governance. Governmentality
• Practices: Paradigms and models
• Joint Venturing:

o Joint venturing overview

o Structuring a JV arrangement

o IJV versus UJV

o Reporting & performance monitoring

• Case studies

 Day Three: Pre-Development Assessment and Cost Management