Background:
A common and regular phenomenon with national oil companies (NOCs) (particularly amongst developing producer nations) is the pressure to increase crude oil & natural gas production to fund their ever-increasing national budgets.
Similarly, additional pressure comes in when the NOC is in Joint Venture (JV) with other shareholders, be they International Oil Companies (IOCs) or Independent Indigenous Producers, and the NOC is unable to adequately fund its share of the operation.
Such shortages or inadequate funding mostly by NOCs have resulted in undertaking ‘Alternative Funding’ arrangements to sustain the operations and achieve the JV’s corporate and national objectives. The alternative funding is thereby provided by other partner(s). This can also be the case under ‘Carry Arrangement’ with the partner providing the funds referred to as the Carrying Partner.
To repay the alternative funding provider or carrying partner, part of the provider/Carried Partner’s (e.g. NOC’s) Equity Crude is the source of repayments through what it termed ‘Entitlement Crude’.
Entitlement crude is designed in different models and its deduction are fraught with disagreements thereby necessitating periodic reconciliations, and in extreme cases dispute resolutions.
This program is designed with the critical needs and concerns of all players and stakeholders in mind and seeks to strengthen technical know-how of all parties to a Alternative Funding/Carry Arrangement with respect to Entitlement Crude Oil Management.
We have designed and tailored this programme to address practical in-country issues. And participants will also gain significant insights into how to minimize unending
and prolonged Funds Recovery or Cost Recovery.
Contact us for full course brief
This course is recommended for those engaged in:
- Crude Oil Marketing
- Commercial & Operations
- Corporate Planning
- Finance & Accounts Staff & Managers
- Crude Oil Shipping & Terminal Operations
- Cash Call Administration for Joint Venture (E&P) Operations.
