Upstream Petroleum Contracts: 5-Day Professional Training Course

Course Overview

This intensive 5-day training program provides comprehensive coverage of upstream petroleum contracts, exploration and production agreements, and the legal-commercial frameworks governing oil and gas operations. Designed for professionals in the Kingdom of Saudi Arabia (KSA), Oman, GCC countries, and Africa, this course addresses region-specific contractual models, fiscal regimes, and emerging trends in the petroleum industry.

Who Should Attend

• Petroleum engineers and geoscientists

• Legal counsel and contract managers in oil and gas sector

• Government officials from petroleum ministries and regulatory bodies

• Commercial analysts and investment professionals

• Joint venture partners and NOC/IOC representatives

• Financial advisors in upstream petroleum projects

Day 1: Foundations of Upstream Petroleum Contracts

Morning Session: Introduction to Upstream Petroleum Industry

Module 1.1: Upstream Value Chain Overview

• Exploration, appraisal, development, and production phases

• Risk allocation across the petroleum value chain

• Key stakeholders: National Oil Companies (NOCs), International Oil Companies (IOCs), and government entities

• Regional context: Saudi Aramco, PDO (Oman), ADNOC (UAE), and African NOCs

Module 1.2: Types of Upstream Petroleum Contracts

• Concession agreements (traditional license systems)

• Production Sharing Contracts (PSCs)

• Service contracts and risk service agreements

• Joint venture agreements and farm-in/farm-out arrangements

• Hybrid models in GCC and African jurisdictions

Afternoon Session: Legal and Regulatory Frameworks

Module 1.3: Petroleum Laws in KSA, Oman, GCC, and Africa

• Saudi Arabia’s petroleum legal framework and Aramco’s role

• Oman’s exploration and production regulations

• UAE, Qatar, Kuwait, and Bahrain petroleum laws

• African petroleum codes: Nigeria, Angola, Egypt, Ghana, and Mozambique

• Licensing rounds and bidding processes

Module 1.4: International Legal Principles

• Sovereignty over natural resources

• Stabilization clauses and contract sanctity

• International arbitration and dispute resolution

• ICSID, ICC, and LCIA arbitration in petroleum disputes

Day 2: Production Sharing Contracts and Fiscal Systems

Morning Session: PSC Architecture

Module 2.1: Production Sharing Contract Fundamentals

• Cost recovery mechanisms and profit oil/gas sharing

• Contractor’s rights and obligations

• Government take and ring-fencing provisions

• PSC models in Africa: Angola, Nigeria, Mozambique case studies

• Oman’s PSC framework and recent modifications

Module 2.2: Fiscal Terms and Economic Modeling

• Royalty structures in GCC and African countries

• Signature bonuses, production bonuses, and profit sharing

• Tax regimes: corporate income tax, resource rent tax, withholding tax

• Economic indicators: NPV, IRR, government take percentage

• Fiscal stability in volatile oil price environments

Afternoon Session: Risk and Cost Management

Module 2.3: Cost Recovery and Petroleum Costs

• Operating expenditure (OPEX) and capital expenditure (CAPEX)

• Cost recovery limits and audit procedures

• Carried interest and farm-down transactions

• Cost control mechanisms in GCC and African PSCs

Module 2.4: Work Program and Commitments

• Minimum work obligations and exploration commitments

• Relinquishment requirements and contract area management

• Development and production obligations

• Performance guarantees and penalties

Day 3: Concession Agreements and Service Contracts

Morning Session: Concession Systems

Module 3.1: Traditional Concession Agreements

• Historical evolution from old concessions to modern licenses

• Ownership of petroleum resources and reserves

• Fiscal terms in concession regimes

• African concession models: Egypt, Algeria, Libya

• GCC licensing frameworks

Module 3.2: Joint Operating Agreements (JOAs)

• JOA structure and relationship with host government contracts

• Operator selection and responsibilities

• Non-operator rights and participating interests

• Voting rights, cash calls, and default provisions

• AIPN Model JOA and regional variations

Afternoon Session: Service Contracts

Module 3.3: Risk Service Contracts and Technical Service Agreements

• Service contract models in Middle East and Africa

• Fee structures: fixed fees vs. performance-based remuneration

• Kuwait’s Technical Service Agreements (TSAs)

• Iraq’s service contracts with IOCs

• Contractor risk allocation in service models

Module 3.4: Gas Contracts and LNG Projects

• Gas sales agreements and pricing mechanisms

• LNG development in Oman, Qatar, and Mozambique

• Domestic gas obligations and export restrictions

• Gas monetization strategies in the region

Day 4: Contract Negotiation and Risk Allocation

Morning Session: Negotiation Strategies

Module 4.1: Structuring Upstream Deals

• Pre-bid analysis and due diligence

• Negotiation tactics for NOCs and IOCs

• Balancing government take with investor returns

• Local content requirements in KSA, Oman, GCC, and Africa

• Technology transfer and capacity building obligations

Module 4.2: Key Commercial Terms

• Bonus payments and signature requirements

• Petroleum pricing: Brent, WTI, Dubai crude benchmarks

• Currency risks and exchange rate provisions

• Payment terms and revenue distribution

• Banking and finance considerations

Afternoon Session: Risk Management

Module 4.3: Contractual Risk Allocation

• Geological and commercial risks

• Political risk and force majeure provisions

• Environmental liabilities and decommissioning obligations

• Insurance requirements and indemnification

• Termination rights and exit mechanisms

Module 4.4: Local Content and National Participation

• Saudi Vision 2030 and local content policies

• Oman’s In-Country Value (ICV) program

• African local content laws: Nigeria, Angola, Ghana

• Joint venture requirements with NOCs

• Employment and training obligations

Day 5: Emerging Trends and Practical Applications

Morning Session: Modern Developments

Module 5.1: Energy Transition and Contractual Adaptations

• Carbon capture and storage (CCS) in upstream contracts

• Renewable energy integration in petroleum agreements

• ESG considerations in contract design

• Flare reduction commitments in African and GCC contracts

• Climate change provisions and emissions targets

Module 5.2: Technology and Digitalization

• Digital oilfield provisions in modern contracts

• Data ownership and intellectual property rights

• AI and machine learning applications

• Enhanced oil recovery (EOR) contractual frameworks

Afternoon Session: Case Studies and Workshop

Module 5.3: Regional Case Studies

• Saudi Aramco’s upstream partnerships and unconventional gas projects

• Oman’s Blocks 60 and 61: Duqm refinery integration

• UAE’s offshore concessions and competitive bidding

• African mega-projects: Mozambique LNG, Senegal/Mauritania projects

• Dispute resolution cases from the region

Module 5.4: Interactive Contract Negotiation Exercise

• Team-based simulation: negotiating a PSC

• Drafting key contractual clauses

• Resolving common contractual disputes

• Practical checklists and templates

• Q&A session and course wrap-up

Course Benefits

Participants will gain:

• Comprehensive understanding of upstream petroleum contract types and structures

• Regional expertise specific to KSA, Oman, GCC, and African petroleum frameworks

• Practical negotiation skills for complex petroleum agreements

• Risk assessment capabilities for upstream investments

• Networking opportunities with industry professionals

• Certificate of completion from recognized training provider

Target Markets: KSA, Oman, GCC & Africa

This course is specifically tailored for professionals operating in:

Kingdom of Saudi Arabia: Understanding Aramco’s partnership models, unconventional resources development, and Vision 2030 initiatives in the petroleum sector.

Oman: Navigating PDO operations, Block PSCs, tight gas development, and ICV requirements for upstream contractors.

GCC Region: Covering ADNOC’s offshore concessions, Qatar’s North Field expansion, Kuwait’s Project Kuwait, and Bahrain’s offshore discoveries.

Africa: Addressing the diverse petroleum fiscal regimes across Nigeria, Angola, Egypt, Ghana, Mozambique, Senegal, and other emerging hydrocarbon provinces.

Training Methodology

• Expert-led lectures with real-world examples

• Interactive case study analysis

• Group discussions and knowledge sharing

• Negotiation simulations and role-playing exercises

• Template contracts and practical checklists

• Post-course support and resource materials

Duration: 5 days (40 training hours)
Delivery: In-person, virtual, or hybrid format
Language: English (Arabic translation available)

Keywords: upstream petroleum contracts training, PSC course KSA, oil and gas contracts Oman, GCC petroleum agreements, African upstream contracts, production sharing agreements, concession contracts Middle East, petroleum fiscal systems, NOC IOC contracts, upstream legal training