CERTIFIED TRAINING COURSE: ACCREDITED BA C COMPUTER INTERACTIVE TRAINING COURSE Worked on oil and gas fiscal issues for more than 80 governments worldwide Development of Service Contracts in Mexico Over 40 years’ experience in the industry Other languages spoken: Spanish, Dutch and French COURSE LEADER: DR PEDRO VAN MEURS VAN MEURS CORPORATION WORLD FISCAL SYSTEMS FOR OIL & GAS Special Focus on Mexico’s Hydrocarbon Revenue Law 24 - 27 October 2016 • Mexico City, Mexico "I believe the course comprises a very good coverage of the aspects of the Mexican legislation which provides all the elements to prepare for the Mexican bid rounds." Christian Alan Ramirez Lopez, Petroleum Economist Analyst, SCHLUMBERGER FROM THE PROUD PRODUCERS & ORGANISERS OF RENOWNED EVENTS: BY ATTENDING THIS COURSE PARTICIPANTS WILL: • Analyse key fiscal aspects relating to Mexico’s Hydrocarbon Revenue Law • Understand the nature and details of all the important fiscal features globally • Carry out advanced economic analysis on contract options and fiscal systems in Mexico • Discuss how government policies impacton fiscal systems • Pinpoint the optimal investment opportunities for oil & gas projects in Mexico
Transcript
CERTIFIED TRAINING COURSE:
ACCREDITEDBAC
COMPUTER INTERACTIVE TRAINING COURSE
Worked on oil and gas fiscal issues for more than 80 governments worldwide
Development of Service Contracts in Mexico
Over 40 years’ experience in the industry
Other languages spoken: Spanish, Dutch and French
COURSE LEADER:DR PEDRO VAN MEURSVAN MEURS CORPORATION
Worked on oil and gas fiscal issues for more
WORLD FISCAL SYSTEMS FOR OIL & GASSpecial Focus on Mexico’s Hydrocarbon Revenue Law
24 - 27 October 2016 • Mexico City, Mexico
"I believe the course comprises a very good coverage of the aspects of the Mexican legislation which provides all the elements to prepare for the Mexican bid rounds."
Christian Alan Ramirez Lopez, Petroleum Economist Analyst, SCHLUMBERGER
FROM THE PROUD PRODUCERS & ORGANISERS OF RENOWNED EVENTS:
BY ATTENDING THIS COURSE PARTICIPANTS WILL:• Analyse key fiscal aspects relating to
Mexico’s Hydrocarbon Revenue Law
• Understand the nature and details ofall the important fiscal features globally
• Carry out advanced economic analysison contract options and fiscal systemsin Mexico
• Discuss how government policiesimpacton fiscal systems
• Pinpoint the optimal investmentopportunities for oil & gas projectsin Mexico
WORLD FISCAL SYSTEMS FOR OIL & GAS
Special Focus on Mexico’s Hydrocarbon Revenue Law
OVERVIEW:This interactive, computer based training course provides participants with an intimate knowledge of petroleum upstream fiscal systems with a special, in-depth focus on Mexico’s Hydrocarbon Revenue Law.
Topics will include royalties, production sharing, concessions, joint venture agreements, service agreements, administration of fiscal systems as well as standalone vs. incremental analysis in Mexico and case studies from around the world.
Utilising powerful spreadsheet models, participants will understand how various economic factors can impact a fiscal system both from a government and investor perspective. Run for over 35 years, this course continues to equip participants with the knowledge to negotiating better contracts and concessions and identifying the optimal investment opportunities.
WHO SHOULD ATTEND: • Government officials
• Country managers & external affairs
• Managers
• CEOs & CFOs
• Tax advisers & fiscal issues planners
• Legal counsels
• License administrators
• Negotiators
• Executive strategy & planning managers
• Portfolio managers
• Commercial advisers
• Accountants
• Business development & corporate
• New venture managers
• Engineers & geophysicists
• Lawyers
• Economists & business analysts
Receive the most comprehensive overview on oil & gas fiscal systems in Mexico and around the world
During the course an Excel Work Book will be provided for the participants simulating all these fiscal terms for analysis during the course. Furthermore the course will provide an overview of all world fiscal terms and deal with other important recent developments.
"Tremendous to work with delegates from governments
to investors, exploring mutually beneficial fiscal systems."
Gilbert Ruegg,New Business Development Manager,
SHELL
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“Great course! A good balance between essentials and in-depth
discussions.” Jose Manuel Chavez,
Director,COMISION NACIONAL DE HIDROCARBUROS
BONUSES, RENTALS, ROYALTIES Signature bonuses and bonus bidding• USA • Canada• Kazakhstan • The Netherlands
Production bonuses:• Bangladesh • Egypt• NigeriaRentals & acreage management• Alberta • Cambodia
Surface Rentals as applicable for Mexico
Fixed & sliding scale royalties, royalties in kind & cash, alternative procedures for determining royalty values. Royalty concepts: • Algeria • Nigeria• Colombia • US Gulf of Mexico• Thailand • Nova Scotia
Price sensitive royalties for oil and gas in Mexico
Severance taxes: USA Mineral resource extraction tax: Russia Price discounts: Pakistan
CORPORATE INCOME TAX Consolidation and ring-fencing• UK • Thailand• Pakistan Group taxation• USA • The Netherlands• Australia
Exclusion from group taxation in Mexico
Gross revenue determination and tax reference prices• GabonDeduction of other payments to government:• Canada • Norway• Colombia • ChinaTreatment of signature bonuses for tax purposesDeduction of operating costs and headquarter costsAlternative capital depreciation methods and MACRS system
Mexico system of depreciation and ring fencing, comparative economic analysis
Deduction of interest Loss carry forward and carry backward:• Hungary • Russia• Brazil • USA• CanadaRefunds for tax value of losses• NorwayDepletion allowances and provisional allowances:• Spain • Chad
Uplifts:• Nigeria • AustraliaTax rates and globalisation of corporate income tax
Tax rates in Mexico
Tax credits• USA • CanadaWorldwide corporate income tax systems, tax credits,tax treaties• USA • The Netherlands• Malaysia
Training for the competitive edge
ADVANCED SOFTWARE AND ONLINE SERVICEDr Pedro van Meurs has available for subscription by course participants one of the most advanced World Fiscal Models in the Markets. Using a series of extensive information, comparative tables and fiscal input sheets, the model can benchmark any fiscal system in the world, whether offshore or onshore including:
Algeria
Angola
Argentina
Australia
Azerbaijan
Bangladesh
Bolivia
Brazil
Cambodia
Canada
Chad
China
Colombia
Denmark
Egypt
Gabon
Ghana
Guyana
Hungary
India
Indonesia
Ireland
Kazakhstan
Libya
Malaysia
Mexico
Mongolia
Nigeria
Norway
Oman
Pakistan
Peru
Philippines
PNG
Russia
Saudi Arabia
Spain
Sudan
Syria
Thailand
The Netherlands
Trinidad & Tobago
UK
USA
Venezuela
Vietnam
Yemen
INTRODUCTION Introduction to Excel based spreadsheet for “stand alone” analysis Brief review of profitability indicators, such as:• NPV• IRR• EMV• Profitability ratiosPrice sensitivity & divisible income analysisGovernment take & government revenue analysis
WORLD FISCAL SYSTEMS FOR OIL & GAS
Special Focus on Mexico’s Hydrocarbon Revenue Law PRODUCTION SHARING The original Indonesian concept Profit oil and sliding scales: • Philippines • JDA • Egypt • Yemen • China • Malaysia • India • Azerbaijan • Guyana • Trinidad & Tobago • Brazil Pre-Salt Cost Oil, cost oil limits and sliding scales • Vietnam • Syria • Oman • India • Nigeria • Egypt • Angola • Yemen
Cost Oil concepts in Mexico
Uplifts • Indonesia • Angola Special features: FTP, price caps, deemed interest, excess cost oil • Indonesia • Malaysia • China • Sudan Special terms for gas: • Malaysia • Indonesia Production sharing and royalties • Malaysia • Pakistan • Gabon • Mongolia • Vietnam Production sharing and corporation income tax • Bangladesh • Egypt • Sudan • Indonesia • Angola • China • Malaysia • Nigeria Incorporation of royalties, taxes, PSCs example • Mexico PSC options
JOINT VENTURES AND CARRIED INTEREST Joint stock companies and Joint Operating Agreements Joint stock companies • Venezuela • Saudi Arabia
Joint Ventures in Mexico
Payments upon participation Fixed rate carried interest: • Colombia • Malaysia • China Special state company financing features: • PNG • Gabon Carried interest & corporate income tax Carried interest & production sharing • China
PROGRESSIVE AND SPECIAL TAXES AND PROFIT SHARES Special taxes based on gross revenues: • USA • Pakistan • Colombia • Trinidad & Tobago Surtaxes, Hydrocarbon Tax: • Norway • Denmark Special taxes based on net revenues: • UK • Alberta oil sands • Brazil • Alaska • The Netherlands • Algeria Tax credits that can be traded • Alaska IRR based taxes: • PNG • Ghana • Australia IRR based profit oil and royalties: • Russia-Sakhalin • Azerbaijan • Angola • Canadian frontier royalty • Newfoundland R-factors: • Peru • Azerbaijan • India • Thailand Combination of R-factors and production based profit oil • Libya Options for progressive scales in Mexico One and two way adjustments of price progressive features Special taxes and corporate income tax
PRICE PROGRESSIVITY AND LOW OIL PRICES Countries with fiscal systems that are well structured to deal with low oil prices Fiscal features recommended in order to maintain investment under low oil prices
VALUE ADDED TAXES, IMPORT DUTIES AND PROPERTY TAXES Value added taxes, credit and refunds
• Mexico • Bolivia
Value added tax problems • Russia • China • Brazil • Vietnam Import duties, temporary importation, exemptions • Pakistan Export duties • Russia Property taxes • USA • Canada
SERVICE CONTRACTS Iraq 1996 Single Fee Model Kuwait Operating Services Agreement Iran service contracts of the 1970's Iran Buy Back Agreement Mexican Multiple Service Contracts Iraq Development and Production Contracts Service Contract options for Mexico
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"Excellent course; Well designed, great speakers
and well organised."Adriana Alvarez Montero,
Director of Operations,PEMEX
WORLD FISCAL SYSTEMS FOR OIL & GAS
Special Focus on Mexico’s Hydrocarbon Revenue Law PROFIT SHARING CONTRACTS Bolivia Profit Sharing Options for Mexico
Training for the competitive edge
INCREMENTAL ANALYSIS Introduction to Excel based spreadsheet for “incremental” analysis Incremental analysis: • Corporate income tax Incremental analysis: • Royalties • Production sharing • Carried interest Incremental analysis: • IRR • R-factor based features Analysis of goldplating: • PNG • India
CLASSIFICATION OF FISCAL SYSTEMS Legal and economic classification Concessions, Production Sharing Contracts, Joint Ventures and Hybrid Systems Four Mexico Contract Options • License Contracts • Production Sharing Contracts • Profit Sharing Contracts • Service Contracts Concessions vs License Contracts in Mexico
COUNTRY REVIEW OF FISCAL SYSTEMS: Alberta Norway Egypt China Indonesia Colombia
STRUCTURE OF GOVERNMENT TAKE Sharing of divisible income: • Progressive • Neutral • Regressive Effect of incremental investments: • Ireland • Egypt • PNG Front end and back end loading: • Texas • Newfoundland
Geological risk and government take • Argentina • US Gulf of Mexico • Venezuela Government take oil & gas price variation • Argentina • Newfoundland • Mexico
LEVEL OF GOVERNMENT TAKE Fiscal stability • Canada • Egypt Determination of level of government take Competition among governments for investment Competitive position of Mexico
RISK SHARING Sharing of risk between government and companies: • Price risk • Cost overrun risk • Reserve risk • Economic risk • Gas marketing
RESOURCE POLICIES Exploration promotion Cost effective operations Maximum recovery of reserves and marginal field development Heavy oil development and gas development Possible Mexico resource policies
ECONOMIC POLICIES Encouraging investment and re-investment Maximising domestic economic growth and training and education Frontier/regional development The case of Mexico
ADMINISTRATIVE POLICIES Revenue and cost verification Cost of administration Complexity of system in Mexico
INTERNAL DISTRIBUTION OF GOVERNMENT TAKE Federal, provincial/state and municipal participation in government take
Participation by native groups, private landowners and consumers
WORLDWIDE FUTURE TRENDS Anticipated world and petroleum industry developments Government take development Simplification and diversification of term Increased role of unconventional resources Impact of globalisation and increased attention to the people
DR PEDRO VAN MEURS
During the last 40 years Pedro has worked on fiscal oil and gas issues with more than 80 governments around the world.
He was a leading consultant in:
• Opening of the Newfoundland offshore for exploration and production• Alaska Petroleum Profits Tax and the proposed gas pipeline contract• Development of the first model contract for offshore China• Production sharing, SPT and tax terms in Trinidad and Tobago• Capitalisation of YPFB and 1996 petroleum law in Bolivia• PSC’s in Gabon and Bangladesh• Creation of fiscal terms in Thailand and Pakistan• Development of service contracts in Mexico and Kuwait
He has hosted the World Fiscal Systems for Oil & Gas course and participated in training seminars in more than 30 countries in the world. While carrying out international consulting, he was for many years also president of a small Alberta petroleum company.
Together with Barrows Inc., New York, he developed PETROCASH, which is the most comprehensive integrated database and computer model for World Fiscal Systems for Oil & Gas.
EDUCATIONPh.D. in Economic Geology (cum laude)
University of Utrecht in the Netherlands (1970)
LANGUAGESEnglish, French, Dutch, Spanish
PUBLICATIONSWorld Rating of Oil and Gas Terms, 2012
COURSESWorld Fiscal Systems for Oil & Gas
Advanced Fiscal Systems for Oil & GasProduction Sharing Contracts - Advanced Master Class
World Fiscal Systems for Unconventional Oil & Gas
PORTFOLIO AREALegal, Fiscal and Contracts
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