A poorly drafted clause in a production sharing agreement can cost a state or a company years of disputed revenue and drag both sides into international arbitration. In an industry where a single contract can govern billions in exploration and production activity across decades, legal precision is not a formality – it is risk management.

International petroleum agreements sit at a crossroads of national legislation, international legal principles, and negotiated commercial terms, binding together states, national and private oil companies, contractors, and investors. Each stage – exploration, production, transport, and sale – carries its own distribution of rights, obligations, taxation, and risk.

This program builds participants' ability to read, draft, and administer these contracts: understanding governing law and risk allocation, following environmental and regulatory duties, and knowing how disputes are actually resolved when they arise.

The Arab British Fellowship Training Academy offers this training program to give participants a solid, applicable command of the legal rules governing international petroleum contracts and transactions.

Who Should Attend?

• Legal advisers and contract specialists in petroleum and energy companies.
• Managers negotiating and administering international petroleum agreements.
• Government officials involved in petroleum regulation, licensing, and contractual oversight.
• Professionals in commercial affairs, compliance, risk management, and finance within the petroleum sector.

Knowledge and Benefits:

After completing the program, participants will be able to:

• Identify the common types of contracts and agreements used across the petroleum industry.
• Analyze the rights, obligations, and risks arising from international petroleum contracts.
• Navigate governing law, taxation, and regulatory obligations within these agreements.
• Review, draft, and manage international petroleum contracts with greater confidence.
• Apply appropriate dispute resolution mechanisms when contractual conflicts arise.

Module 1: The Legal Landscape of International Petroleum Contracts

• Sources of law governing international petroleum transactions and the relationship between national and international rules.
• Legal status of states, national oil companies, and private petroleum companies.
• Essential elements, validity requirements, and core rights and obligations of a petroleum contract.

Module 2: Contract Structures Across the Exploration-to-Production Lifecycle

• Legal structure of exploration and production contracts, work programs, and production obligations.
• Production sharing agreements: cost recovery, contractor entitlements, and state participation.
• Concession agreements and joint ventures: participating interests, financing, and transfer of interests.

Module 3: Service, Sales, Supply, and Transport Agreements

• Petroleum service contracts: scope, fees, performance standards, and contractor responsibilities.
• Sales and supply agreements: transfer of title and risk, pricing, quality, and payment terms.
• Transportation and storage contracts, including liability for delay and damage.

Module 4: Negotiating Terms, Allocating Risk, and Choosing Governing Law

• Principles for negotiating and drafting rights, obligations, and financial terms.
• Allocating operational, financial, and legal risk, including force majeure and indemnities.
• Selecting governing law and managing agreements with states and public entities, including sovereign immunity and stabilization clauses.

Module 5: Financial, Tax, and Compliance Obligations

• Tax obligations, royalties, and financial security instruments such as letters of credit and bank guarantees.
• Environmental obligations: pollution, remediation, and decommissioning liability.
• Health, safety, and operational compliance responsibilities across operators, contractors, and subcontractors.

Module 6: Third Parties, Disputes, and Ongoing Contract Administration

• Subcontracting rules and the assignment or transfer of contractual rights.
• Dispute resolution through negotiation, mediation, arbitration, and litigation, including enforcement of awards.
• Contract breach, termination, and administering contracts through their full lifecycle, including current developments such as the energy transition.