Course dates
A 4-day intermediate training course covering:
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LNG and gas sales
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Markets, networks and pricing
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Upstream and transportation agreements
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Gas supply and purchase agreements
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Contract Management
- Dispute resolution
Course Overview
Today's global gas market involves trading Pipeline Gas and LNG in Africa, Europe, Middle east, Asia and North America. These markets have grown rapidly as result of demand and deregulation, bringing tremendous business opportunities for all the stakeholders including government entities, producers, sellers, transporters and buyers etc. High contract value, complicated commercial terms, volatile prices, cultural differences and many other unpredicted risks have made contract negotiating, dispute resolution and risk management more and more challenging.
Effective training in these areas becomes an urgent need for relevant executives in both public and private sectors. In response to such industry dynamics, this advanced course will provide effective training in the critical considerations and conditions for successfully concluding Gas and LNG Sales Agreements. The course will enable participants to gain an insight into the way in which Buyers and Sellers view and negotiate Gas and LNG Sales Agreements, and will give participants a detailed understanding of the terms that are important in these transactions.
Participants will also receive a copy of Professor Stickley’s text “A Framework for Negotiating & Managing Gas Industry Contracts” which includes a CD containing examples of the contracts discussed during the course.
Who should attend
The course is suitable for attendees who are actively involved or likely to be involved in contract negotiations and all those who need an understanding of the principles of gas contracts, including issues such as price terms and the allocation of risk. Those who will benefit are therefore likely to be:
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Senior and middle level commercial managers;
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Commercial lawyers;
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Risk managers;
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Energy purchasing managers;
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Strategy managers
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Pipeline marketing managers
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Operations managers
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Project managers
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Senior government officials and regulators.
DAY ONE
LNG and gas sales development projects
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Development logic: the contractual chain and commercial balance that is at the heart of gas projects
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Development risk: a matrix approach to risk assessment and management
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Understanding risk in gas projects; overview of the various types of risk that can occur
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Risk apportionment – its fundamental role in project financing
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Risk should lie with the party who can best control it: rewards should be proportional to the scale of risks being taken and the likelihood of such risks occurring. Identifying and allocating risk.
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How areas of risk are handled in the contractual arrangements for the supply of gas to a project
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Assessment of gas project feasibility: how quantity is the key to understanding the process
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Techniques for economic assessment
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The economic model of gas contracts
Commercial issues in gas development
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Gas markets: development in the unbundling and deregulation of gas markets
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Gas networks: interconnections and trading hubs
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Gas pricing methodologies
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Enterprise structures
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Financing options in energy project developments: balance sheet, non-recourse project, multilateral agency funding
Case study: gas project risk matrix
A detailed review, in workshop simulation format, of the development of a risk matrix for a typical LNG project. Based on the contractual interfaces required by such a project, from upstream development, through gas liquefaction and shipping, to sale to end-user customers of re-gasified gas, this case study highlights the risks that need to be handled. In simulation format, the case study builds a risk matrix to identify these risks and to examine the various alternative means of addressing them.
DAY TWO
Upstream agreements: exploration, processing and storage
Exercise: tariff methodologies
Example simulation of alternative methods of calculating
Gas transportation agreements
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Classification of pipeline systems
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Relationship with gas sales agreements
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Transportation pricing
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How transportation risks have to be handled and apportioned
DAY THREE
Pipeline gas supply and purchase agreements (GSPA) & LNG agreements
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Duration and delayed start date provisions
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Indefinite pricing and indexation
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How to express gas quantities in pipeline gas contracts
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Take or pay; make-up and carry forward
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Force-Majeure in gas sales contracts; the differences between pipeline gas and LNG
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Current practice on shortfall penalties
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The LNG chain
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The history and philosophy of LNG pricing
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Price formulae used in the industry
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Recent developments in Pacific Basin LNG pricing
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The price of LNG shipping
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The future of LNG pricing
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Volume flexibility and options in LNG contracts – recent approaches
Exercise: negotiation simulation for pipeline gas/LNG supply and sales agreement
A simulated negotiation of the terms and conditions in pipeline gas/LNG supply & purchase agreements. Based upon a hypothetical gas field, this simulationhighlights all the issues addressed in such contracts, and examines the various alternative means of handling them. Results of the negotiation will be evaluated using the economic model GasPak.
DAY FOUR
Contract management and dispute resolution
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Operational issues: scheduling, invoicing, balancing
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Production accounting
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Gas delivery procedures and coordination between suppliers, terminal operator, transporters and users
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The need to address dispute resolution
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Potential areas requiring dispute resolution; price review mechanisms in gas supply and purchase agreements
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Inclusion of opportunity for expert resolution
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The expert process in dispute resolution
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Arbitration
Exercise: invoicing for GSPA
Centrally located hotel in Paris, Paris, France
This programme takes place on a non-residential basis at a hotel in central Paris. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
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Dennis Stickley
Dennis Stickley is an international legal expert in petroleum law who is based in New Zealand. He is a qualified lawyer in the United States as well as New Zealand and has been listed in the Guide to the World’s Leading Energy and Natural Resources Lawyers.
Mr. Stickley received the degrees of Juris Doctor from the University of Wyoming and LLM-Energy Law from the University of Utah. In his thirty years of practice, Mr. Stickley has been the chief legal officer for Sinclair Oil Corporation in the US, and the Petroleum Exploration Corporation of New Zealand. He has also worked as an adviser on law and negotiations regarding petroleum resource development, pipeline transportation and fuel purchase contracts to Petrobangla, PetroVietnam, Kazmunigaz, Cambodian Petroleum Authority, Perusahaan Gas Negara (Persero), Gas Authority of India, Papua New Guinea Department of Mines and Petroleum, Philippines National Power Corporation and the Sri Lanka Petroleum Resources Development Secretariat.
Mr. Stickley has been a consultant to the Asian Development Bank, The World Bank and the European Investment Bank on petroleum sector policy, project financing for oil and gas development and crossborder gas trade all over the world. He was the legal adviser to four West African governments for the West African Gas Pipeline Project and was appointed as an adviser by the US State Department and Department of Commerce on gas pipeline projects in Azerbaijan and Bangladesh.
The University of Dundee Centre for Energy, Petroleum & Mineral Law and Policy has appointed Mr. Stickley as Honourary Lecturer. He is the course author of International Comparative Petroleum Law and has published A Framework for Negotiating and Documenting International Petroleum Transactions and A Framework for Negotiating and Managing Gas Industry Contracts.
Mr. Stickley’s research in the field of petroleum law has been published in the Land and Water Law Review, Tulsa Law Journal and Journal of Comparative and International Law.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
10-12 Jul 2012 (London, UK)
This 3-day Euromoney Energy Training course will give you an in-depth understanding of the problems and solutions in unit formation, negotiation of participation factors and operating agreements. The role of governmental agencies in consent and oversight will also be discussed.
10-12 Oct 2012 (Singapore, Singapore)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
17-20 Dec 2012 (Dubai, United Arab Emirates)
This 4 day International Oil & Gas Contracts course is specifically designed for professionals involved internationally in the oil and gas industry, it offers a unique opportunity to rapidly increase your understanding of the legal issues involved in various UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts.
3-5 Dec 2012 (London, United Kingdom)
Euromoney Energy Trainings Petroleum Sales Contracts course is designed to give attendees a comprehensive understanding of crude oil, natural gas and refined products markets and the sales contracts that are utilised for transactions through the supply chain.
23-25 May 2012 (Rio de Janeiro, Brazil)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
21-23 May 2012 (London, UK)
This highly-interactive and practical energy training course will help you gain a thorough understanding of the current state of the global gas and LNG industries.
Develop an in-depth understanding of the issues that will influence the future development of the LNG industry
25-28 Jun 2012 (London, UK)
The four day training course offers a unique opportunity to rapidly increase your understanding of the legal issues involved in various UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts. Delegates will also learn how to effectively negotiate in concert with counsel and how to get the terms negotiated incorporated into an enforceable international oil and gas agreement.
11-13 Sep 2012 (London, UK)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
5-7 Sep 2012 (Singapore, Singapore)
This highly-interactive and practical energy training course will help you gain a thorough understanding of the current state of the global gas and LNG industries. Develop an in-depth understanding of the issues that will influence the future development of the LNG industry.
17-19 Jul 2012 (London, UK)
Course topics include: Allocation of Risk under EPC; Contractor Selection; Impact on Project Structure; Implications for Project Financing; Determination of Damages; Special Circumstances for Refineries; Power
Generation; Gas Processing; Governing Law
21-23 Nov 2012 (Lagos, Nigeria)
Attend this practical and interactive three-day training course and enhance your knowledge in the following key areas: The fundamental economic principles underpinning production sharing contracts (PSC’s); The history and evolution of production sharing contracts (PSC’s); The PSC structure, content and flowchart; Cost recovery, profile share, bonuses, sliding scales; Royalty and Taxation; Ringfencing; Key economic issues in PSC negotiations and bidding, featuring: Nigeria PSC economic modelling workshop, The economic impact of the Petroleum Industry Bill (PIB) and Global case studies
20-23 May 2012 (Dubai, United Arab Emirates)
This 4-day training course will enhance your understanding of the legal issues involved in production sharing contracts and to improve your negotiation techniques.
20-22 Aug 2012 (London, UK)
17-20 Sep 2012 (London, UK)
This four day training course is specifically designed for
professionals involved internationally in the oil and gas
industry, it offers a unique opportunity to rapidly
increase your understanding of the legal issues involved
in various international scenarios and to improve your
techniques and skills in drafting a variety of
international contracts.
14-16 Nov 2012 (Almaty, Kazakhstan)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) and the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
15-18 Oct 2012 (London, UK)
This 4-day course is designed to introduce both lawyers and nonlawyers alike to the understanding of how contracts in the oil & gas industry actually work and how to avoid and manage disputes.
17-21 Sep 2012 (London, UK)
This 5-day course is designed to introduce both lawyers and nonlawyers alike to the theories and practice of international commercial and investment arbitration in the oil & gas industry.
Course dates