The course examines the fundamentals of, and economic principles underlying petroleum fiscal system analysis and design. The mechanics of estimating the effects of fiscal instruments of total government takes and E&P economics and take statistics are to be well discussed with consideration for risk and uncertainty. A petroleum fiscal system includes all the contractual and fiscal aspects that determine the relationship between the host government and the foreign oil companies. This term defines the right and obligations of both the host government and the oil companies.
1. Introduction to Fiscal regimes
- Different types of upstream contracts
- Concept of Economics rent
- Key differences between service Contracts, PSC, Royalty tax regime
2. Introduction to PSC regime
- Basics
- Introduction to key components; Cost recovery, R Factor, Profit sharing
- Economics and financial Modelling; run a dummy financial model
3. Main Parts of a contract
4. Concepts of Valuation of Upstream blocks
