DATES: OCT 23-27, 2017    
       
TUITION: $1995    
       

 

 

 

Overview

Governments in petroleum economies seek to maximize revenue receipts and limit the consequences of uncertainty and instability in actual cash flows resulting from product price or volume disparity from forecast. Global experience indicates that there are a variety of alternatives to share petroleum revenues between the host government and investors. In general, there is a trade-off between revenue maximization and exposure to risk.  Systems which seek to balance these between a government and investor have historically led to reservoir maximization and efficiency.

Governments have adopted the use of revenue funds to stabilize highly volatile petroleum rents; to save for future generations; or to guard against budget shortfalls. More recently, governments have recognized the need to better share petroleum wealth with local communities, especially those disrupted by petroleum operations. This advanced seminar examines the structure and the benefits and risks associated with current practices to manage and distribute petroleum revenues. Participants will receive a detailed review of modern practices and programs, and case studies of recent investment and design of petroleum revenue management programs, as well as local content development programs. Material is delivered through a variety of methods including: reference reading, in-class lecture, industry panels, and interactive group simulations and workshops.

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Course Outline

  • Understanding the “resource curse” and how to avoid it
  • Design of host country’s petroleum revenue management policy
  • Upstream fiscal system options and government take
  • Revenue monitoring, enforcement and collection systems
  • Use of heritage funds (with case study on Timor Leste)
  • Revenue transparency (vs contract disclosure)
  • Fiscal relationships between national and subnational governments
  • Revenue sharing with treasury, state and local institutions (the case for earnings retention within SOEs)
  • Local content program best practices (with case study on Tanzania)
  • Use of petroleum revenues for renewables sector and climate change measures
  • Other energy sector benefits to local communities

 


Course Advisors

Mrs. Guly Sabahi is an independent legal adviser and outside general counsel, with 15 years of law firm experience (most recently as Partner at Dentons), advising major international companies and state-owned entities (including NOCs) on cross-border M&A and JV transactions, mainly in the energy sector. Guly also provides legal support on upstream projects, and power projects. Guly has worked on transactions and projects involving assets in over 50 countries in the Middle East, the Sub-Saharan Africa, Central Asia, and Latin America. Guly teaches at Georgetown University Law Center, and regularly speaks at events hosted by the Association of International Petroleum Negotiators (AIPN), and other leading organizations. Guly serves on the Board of Directors, and as VP External Affairs, of the AIPN. Guly is trained in both civil law and common law jurisdictions, and is admitted to practice in the US (New York and District of Columbia), and as Solicitor in England and Wales.

Mr. Robert Lesnick is an Executive Advisor to businesses and governments seeking to develop projects which expand development and use of natural gas.  Mr. Lesnick recently retired from the World Bank as its Oil and Gas Program Coordinator after a successful 30-year career in the private sector.  He has extensive experience in the petroleum sector, including commodity trading, project development, and natural gas field operations.  Robert has over 25 years of international experience as a manager and lead negotiator for the development of energy infrastructure projects.  He has conducted business in more than 60 countries on 6 continents.