Apply by Apply 11th May 2012 to SAVE £100 / US$160
Commences:
26th June 2012
FUNDAMENTALS OF
GAS & LNG CONTRACTS & PRICING Legal agreements and commercial mechanisms in the gas and LNG value chains, from exploration and production to shipping, transportation and trading
SAVE up to 40% and improve performance with cost-effective tailored in-company courses for groups call +44 (0)20 7017 4455 or email
[email protected]
DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS
Course Programme 1 2 3 4 5 6
COURSE DIRECTOR:
Introduction to International Gas Trade and Contract Structure in the Gas Chain Gas/LNG and Gas Transportation Contracts Model Gas/LNG and Gas Transportation Contracts LNG Shipping, Risk Mitigation, Different Types of Contract and Contract Negotiation Gas/LNG Pricing and Pipeline Transportation Tariffs Gas/LNG Contracting Strategy and Pricing; Key Aspects of Project Finance
IDEAL FOR:
■
Robin Chatterjee BSc BEng MBA CIMA International Business Consultancy Ltd
"Provides detailed knowledge of key agreements and negotiation tactics, helping you avoid costly pitfalls" "Demystifies the entire value chain, with contractual, pricing and finance strategies to give you the competitive edge"
Personnel in natural gas exploration, production and trading needing to understand contracts andtrading and pricing mechanisms
power generation ■ Professionals in gas transmission, LNG shipping, distribution and andpower ■ New starters, recent recruits and graduates practitioners wishing to increase or update their knowledge, or specialise in a new ■ Legal • Experts working on a temporary basis in the industry
sector
strategists in project finance, asset management or investment research ■ Analysts andstrategists and • Specialists needing a wider understanding • Professionals working alongsidecontract the industry project managers looking to improve their negotiation techniques ■ Commercial, andproject and • Employees moving into a new area of specialisation technicians seeking an insight into the contractual framework of gas/LNG operations ■ Engineers and andtechnicians ■
Government advisors, policy makers, economists and regulators andregulators
Solicitors Regulation Authority:
Supported By:
+44 (0)20 7017 4237
Enquiries tel: +1 (646) 957 8929
100%
CPD 21 hours CEUs 2.1
Scan with smartphone QR reader app
of CPD requirements
Visit: www.ibc-academy www.ibc-academy.com/glcp .com/glcp This brochure has been produced using environmentally friendly paper sourced from sustainable forests and is chlorine free
Dear Colleague, The complex geopolitical nature of gas and LNG sourcing, and the long term nature of gas contracts between buyers and sellers means it isessential to understand commercial and legal issues. A solid grasp of the principles of global gas and LNG supply, available techniques for price determination, prevailing contract structure and agreement negotiation techniques is crucial to be able to provide contract safeguards for the future. Misjudgement in any of these areas could result in unwise sourcing decisions, with significant adverse financial and legal liabilities. This 12-week distance learning course has the information you need, enabling professionals in the gas sector and gas advisory ser vices to: • Develop their industry knowledge to a high level • Make astute sourcing decisions • Construct and interpret gas/LNG and gas transportation contracts • Negotiate from a position of strength and gain a competitive edge Delivered by part-time distance education, the six detailed modules: • Highlight the global spread of gas/LNG sources with their relative strengths and weaknesses • Explain the underlying principles and provide practical knowledge of formulation of Ga s/LNG Sales and Purchase Agreements (GSPA) and Gas Transportation Agreements (GTA) between buyers, sellers and transporters of natural gas and LNG • Demonstrate the principles and provide working knowledge of the pricing of natural gas and LNG in a competitive fuel market, and determination of transportation tariffs • Analyse current developments in international LNG and gas trading activities in regions around the world • Evaluate the commercial and geopolitical aspects of gas transit across international boundaries, and compare different modes of liquefaction, transportation and regasification • Provide a comprehensive guide to contract negotiation techniques • Examine the fundamentals of hub linked gas trading, spot mar kets and arbitrage The dynamic blend of downloadable study materials, expert tutorial support plus peer interaction via a dedicated online forum will enable you to gain a thorough, hands-on understanding of the key contracts and mechanisms used in gas and LNG value chains, from exploration and production, to transport, shipping and pricing. Join over 2,500 students who study by distance lear ning annually with us. I look forward to connecting with you online during the course.
Robin Chatterjee Course Director
HOW DOES THE COURSE WORK? The course starts on Tuesday 26 th June 2012 which is the first day that course access will be available. Modules are released one every two weeks over the 12 weeks of the course. Each student receives their own username and password to access our secure site and materials can be accessed from wherever they have an internet connection. The modules can be downloaded as PDF files and saved to a computer or printed out if students want to study whilst on the move. The same site gives access to the course director led tutorial forum. Once a student has completed the study of each module they then sit an online test in order to check their understanding. All tests must be passed by the end of the course. Those who successfully complete all six tests will be awarded a certificate of completion from IBC Academy for CPD purposes.
ADVANTAGES OF DISTANCE LEARNING Increasingly, we all face more pressures in our business lives. Finding time to attend courses of any kind can be very difficult and well meant plans are often put aside indefinitely. Distance learning can be the solution to your training needs. You can enjoy the full benefits of studying, whilst still in employment using this freedom and flexibility to study around your other commitments.
DELIVERED BY IBC Academy delivers high quality training to the ports, logistics, energy, environment and safety industries, assisting individuals and organisations to achieve goals by developing skills, knowledge and performance. We address the growing need for professional training in specific industry areas by providing open and in-house learning and training solutions, delivered by leading industry experts. www.ibc-academy.com
COURSE DIRECTOR Robin Chatterjee BSc BEng MBA CIMA Robin Chatterjee has spent the last 14 years advising some of the largest oil and gas majors engaged in E&P, gas transportation, distribution, LNG importation and cross country gas trade. He has negotiated LNG purchase contracts in Qatar, Yemen and Malaysia among many other countries, as well as structuring and negotiating Gas Sales and Purchase Agreements and Transportation Contracts in Vietnam. He also has experience negotiating international Gas Purchase and Transportat ion contracts with overseas JV partner s in the Indian gas sector. Robin has advised on international gas transit (including Iran to India, Turkmenistan to India via Afghanistan and Pakistan, previous subsea pipeline from Oman to India and Russia to South Korea), gas contracts, gas transportation tariff strategy, regulatory issues and gas prices in India, Bangladesh, UK, Europe, Egypt, Nigeria, Pakistan, North African and Gulf Countries. Prior to present training and consultancy work, Robin spent 25 years at the corporate headquarters of BG Group Plc in the UK, working in corporate finance amongst other divisions. He specialised in transportation tariffs, gas pricing, gas deregulation, international contracts, purchase of international oil and gas assets and financial strategy of British Gas in the UK and worldwide. Robin is widely respected in the international gas sector as a successful strategist, negotiator and speaker at global forums. He conducts numerous gas/LNG courses and is a regular presenter at international conferences. Robin has a degree in engineering, a Master of Business Administration (MBA) and further qualifications from the Chartered Institute of Management Accountants (CIMA), UK.
COMPANIES THAT HAVE ALREADY BENEFITED FROM IBC ACADEMY’S ENERGY TRAINING PROGRAMMES INCLUDE: Acergy Services Ltd • Aegean Energy SA • Alberta Department of Energy • A. P. Moller Maersk • Alldeco S R O • Ariel Reinsurance • BG Group • BHP Billiton • BOC Gases • Boskalis Offshore • BP • British Pipeline Agency Ltd • CB&I • Chevron Texaco • Conoco Phillips • Daewoo Nigeria Ltd. • Industry Canada • E.ON Ruhrgas • JOGMEC • Enereco • Fugro Ltd • G aslink Nigeria Ltd • Gasunie • Germanischer Oil & Gas • Helix Energy Solutions BV • JP Morgan Chase • Lion Petroleum Pty. Ltd. • MR Offshore Navigation • Maersk Oil • National Grid Plc • Nexen Petroleum • Oil Spill Response Ltd. • OPEC • Oryx Oil Company Ltd • Petrasco • Petrobras • Petron Corporation • Phoenixtide Offshore Nigeria Ltd • Pipeline Integrity Engineers • Principia • Qatar Gas • Qatar General Petroleum Corporation • Saudi Arabian Texaco Inc • Schlumberger • Shell Petroleum • Songa O ffshore SE • SPT Group • Statoil Asa • Subsea 7 • Suez-Tractebel • Total E&P • Validus Reinsurance Ltd.
Tel: +44 (0)20 7017 4237 / +1 (646) 957 8929
COURSE SYLLABUS Module One
Introduction to International Gas Trade and Contract Structure in the Gas Chain • Gas industry overview - Gas/LNG measurement units and conversion factors - Technical aspects of gas/LNG chain and definitions and the current state of global gas and Liquefied Natural Gas (LNG) trade - Comparison between different means of gas transportation by pipeline, LNG, Compressed Natural Gas (CNG) and Gas to Liquids (GTL) - Brief profile of gas trade of some of the significant gas trading nations - Gas/LNG market structure and gas industry regulatory issues • Gas/LNG contract - Background, contract types and basic principles - Upstream exploration and production - Concessions, Production Sharing Contracts, royalties and taxes, service and buy back - Feed Gas Contract - LNG Sales and Purchase Agreement (SPA) - Gas Sales and Purchase Agreement (GSPA) - Gas Transportation Agreement (GTA) - Tolling Contract and Spot Purchase Agreement - Supply and Depletion Contract - Interdependence of contracts in the gas/LNG Chain - Contract aim – risk mitigation and commercial value - International examples of LNG/Gas Sales and Purchase Agreement • Gas contract – terminologies used and their derivation • LNG contract – terminologies and calculations used Module Two
Gas/LNG and Gas Transportation Contracts • Contracts in the gas and LNG chain – rationale behind gas/LNG contracts, operational, commercial, legal. • General sequence of activities in the performance of gas and LNG contracts - Flow charts - Checklist of articles for inclusion in gas, LNG and transportation contracts • Explanation of contract clauses - Gas contract – operational and commercial clauses - LNG contract – structure and summarised contents - Legal clauses covering force majeure, dispute resolution, termination, liabilities and indemnities - Gas transportation contract
• Gas/LNG contract negotiation – principles and techniques - Contract negotiation stages, Memorandum of Understanding (MOU), Heads of Agreement (HOA), SPA and GSPA - Contract law and legal significance - Balance of power, mutuality, interpersonal orientation, Best Alternative to a Negotiated Agreement (BATNA), resistance point - Contract negotiation stages - Profile of a successful negotiator, effect of culture on negotiation • Contract negotiation – case studies - Based on experience of four gas/LNG and gas transportation contracts
Module Five
Gas/LNG Pricing and Pipeline Transportation Tariffs • General principles of gas/LNG pricing and pipeline transportation tariff determination - Global spread of prices and trends - Pricing principles and main drivers globally - Current international pricing trends • Local Distribution Company (LDC) pricing mechanism - Commercially justifiable price chargeable by an aggregating LDC • Different pricing bases - Gas price setting – cost plus criteria and net back market value criteria - Price based on imputed value, opportunity cost - Price pooling criteria - Gas pricing based on usage load factor • Economic evaluation and financial modelling - Distinction between cost of service and discounted cash flow methods • Gas/LNG pricing methodologies and price indexation • LNG pricing options and strategies • Gas/LNG pricing strategy in a mixed market situation • Transportation tariff - Tariff determination methodology – Discounted Cash Flow (DCF) and Cost of Service (COS) based - Revenue target and cost recovery methodologies - Capacity and commodity based tariff • Gas/LNG trading - Spot, arbitrage and swaps - model for arbitrage pricing - Example of LNG sales and purchase and gas transportation tariff determination
INTERESTED IN AN IN-COMPANY OR CUSTOMISED DELIVERY OF THIS COURSE? This course can be delivered directly to your company or organisation by distance learning or instructor led workshops whilst including a range of additional benefits to meet your specific business objectives: • Customised delivery additional company focused content, case studies and examples • Blended learning incorporating workshops, online tutoring, additional assessment and skills training • Flexibility - scheduled to suit your requirements • Support - dedicated staff providing required progress reporting To find out more about the benefits of Corporate Training and how distance learning can be a cost effective means of achieving your training goals, telephone +44 (0)20 7017 4455 or email
[email protected].
Module Three
Model Gas/LNG and Gas Transportation Contracts • • • • •
Current trends in LNG/gas contracts worldwide Model Gas Sales and Purchase Agreement Model LNG Sales and Purchase Agreements Model Gas Transportation Agreements Specific provision - Price reopener clause – current trends - Dispute resolution, sole expert, arbitration, reconciliation, available international forums • Side letters - Payment security mechanism - Step in rights - Change in contract provision Module Four
LNG Shipping, Risk Mitigation, Different Types of Contract and Contract Negotiation • Shipping agreements - CIF, FOB, time charter, bareboat and contract of affreightment - Commercial implications of financing LNG ships, share of risk to different parties • Risk mitigation - LNG/gas contract risk allocation matrix, mitigation measures • Ancillary gas/LNG contracts - Spot, tolling and depletion contracts
Module Six
Gas/LNG Contracting Strategy and Pricing; Key Aspects of Project Finance • Exercise on gas/LNG sales/purchase strategy - Considerations underlying LNG production and sales strategy - Contracting and pricing in the gas/LNG chain and key contract terms - LNG Sales and Purchase Agreement (SPA) - Gas Sales and Purchase Agreement (GSPA) - Gas Transportation Agreement (GTA) • Exercise for the construction of Heads of Agreement - Project commencement date - Commissioning - Conditions precedent - Default liabilities - Force majeure conditions - Gas/LNG sales price estimate in the chain • Transfer pricing - Producing field to liquefaction terminal - Liquefaction terminal to regasification terminal - Regasification terminal to gas trader - Gas trader to end consumer - End consumer price to include gas transportation tariff • Project financing - Criteria for financing capital projects - Risk sharing
OTHER COURSES: • Oil & Gas MBA (with Middlesex University) • LNG • Oil & Gas Agreements • Offshore Field Development • Exploration & Production Logistics • Pipeline Engineering • Oil & Gas • FPSOs • Global Energy • Petroleum Economics • Marine Drilling • Nuclear Power • Subsea Engineering • Project Management • Renewable & Alternative Energy For a full list of our other training courses visit us online at www.ibc-academy.com or email
[email protected]
TERMS AND CONDITIONS Enrolment to this Course is subject to the IBC Academy Distance Learning Terms and Conditions at www.ibc-academy.com/IBCADLTC . Your attention is d rawn in particular to clauses 3, 4 and 13 of the terms and conditions which have been set out below:
3. TAXES The feesstated are exclusive of any applicable VAT,sales,serviceor similar taxes (which will be charged, where applicable, at the appropriate rate as at the date of invoice). Where payment is subject to a withholding tax the student will apply the reduced rate under the appropriate double tax treaty, if applicable, and agree to provide IBCA with a certificate of tax deduction within three months of payment. If a certificate of tax deduction is not provided within three months, you will become immediately liable to pay the outstanding amount.
4.PARTICIPANTCANCELLATIONPOLICY You may cancel your place on the Course by giving notice in writing to the Course Administrator up to (and including) 7 days from the date IBCA confirms your acceptance to the Course in accordance with Condition 1 and you will not be liable for the payment of any fees and any fees already paid to IBCA for the Course will be refunded. I f IBCA receives your notice of cancellation 8 days or more from the date IBCA has confirmed your acceptance to the Course you will still receive a refund of your fees already paid to IBCA, subject to payment by you to IBCA of a £175 cancellation fee to cover administrative costs (which shall be payable immediately upon your cancellation), provided such notice of cancellation is received by IBCA before the first day of the Course. IBCA regrets that no refunds can be given for any cancellation notice it receives on or after the first day of the Course and, in such circumstances, the full fees remain payable by you to IBCA.
13. DATA PROTECTION AND CALL MONITORING Personal data supplied is subject to the Data Protection Act 1998. The personal information shown on the application form, and/or provided by you, will be held on a database and may be shared with companies in the Informa Group in the UK and internationally. This information may be used for direct marketing purposes. If you do not wish your details to be available to companies in the Informa Group, please contact the Database Manager, tel: +44 (0)20 7 017 7077, fax: +44 (0)20 7 017 7828, email:
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Apply online at www.ibc-academy.com/glcp
FUNDAMENTALS OF GAS & LNG CONTRACTS & PRICING
VIP CODE: FLR
DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS
HA1 1
Commences 26th June 2012 5 EASY WAYS TO REGISTER
Course Code
R T / R T / D S / R K / W S / A C B I
FLR2264
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