Courses

When a deepwater field starts producing, how much goes to the State and how much to those who took the investment risk? In this advanced course for professionals and candidates for the oil sector and for suppliers, you follow the economics team of a fictitious operator as it analyses a deepwater block. Compare the fiscal instruments (bonuses, royalties, profit and resource rent taxes, State participation) and their progressivity. Master the mechanics of the production sharing contract: cost oil, the cost recovery limit, profit oil, production-based tranches and the R factor, tax and the national oil company's participation. Distinguish recoverable and non-recoverable costs and the controls of the accounting procedure, budgets and audits. Build a project cash flow in a spreadsheet and evaluate it with NPV, IRR, payback, government take, breakeven price and scenarios. Analyse ring-fencing, stabilisation clauses, arbitration and renegotiation, and finish with transparency under the EITI Standard 2023 and an integrated case. Aligned with the IMF paper "Fiscal Regimes for Extractive Industries: Design and Implementation" (2012) and the EITI Standard 2023. International models and fictitious figures; it is not tax or legal advice. The course is delivered in Portuguese.

What you will learn

• Compare the fiscal instruments used in petroleum regimes and assess their progressivity.
• Explain the mechanics of the production sharing contract: cost oil, the cost recovery limit, profit oil, the split and tax.
• Distinguish recoverable and non-recoverable costs and the associated accounting, budgetary and audit controls.
• Build the cash flow of a project under a production sharing contract, for the contractor and for the State.
• Evaluate a project with economic indicators, government take and sensitivity and scenario analysis.
• Analyse ring-fencing, stabilisation and dispute resolution clauses and prepare a balanced renegotiation.
• Apply the course concepts to a fictitious block and to the reporting of payments and contracts aligned with the EITI Standard 2023.

Modules

1. Petroleum fiscal regimes86 min
2. The production sharing contract84 min
3. Recoverable costs and contract accounting83 min
4. Project cash flow model82 min
5. Economic indicators and risk83 min
6. Ring-fencing, stabilisation and renegotiation83 min
7. Transparency and integrated case84 min

Who it is for

Professionals and candidates for the oil sector, and suppliers