Upstream Petroleum Taxation

About the Course

This 5-day highly interactive Upstream Petroleum Taxation training course offers a deep dive into the specialised area of taxation within the upstream sector of the oil & gas industry. It is designed to equip professionals with a thorough understanding of the taxation frameworks and fiscal regimes that impact exploration, development, and production activities. Delegates will explore the key concepts in petroleum taxation, including the types of taxes and royalties and the differences between concessionary and contractual systems such as production sharing contracts (PSCs) and service contracts. It uses case studies to compare tax regimes across different jurisdictions, providing a global perspective on upstream taxation.

Delegates will understand the fiscal instruments prevalent in the industry, such as royalties and production-sharing agreements, and focus on the specifics of capital allowances, depreciation, and ring-fencing provisions. A practical workshop on calculating royalties and taxes offers hands-on experience in fiscal calculations for upstream projects, which addresses the complexities of international taxation and cross-border issues, covering double taxation treaties, transfer pricing, and strategies for managing tax risks and compliance in multinational operations. They will discuss tax considerations for offshore and deepwater projects and explore efficient structures for international investments.

Tax planning and strategy form with a focus on maximising fiscal efficiency through strategic tax planning, utilising tax incentives, and adapting to changes in tax legislation. The impact of environmental taxes and levies on upstream operations is also examined, alongside case studies on tax planning for multinational upstream projects, ahead of the emerging trends and future challenges in upstream petroleum taxation, including the effects of global tax reforms and the role of sustainability in taxation practices. Discussions on leveraging technology for tax compliance and developing a tax risk management framework prepare delegates for the evolving context of upstream petroleum taxation. Tailored for tax professionals, financial analysts, and oil & gas industry managers, this training program provides the tools and insights needed to navigate the intricate world of upstream petroleum taxation, ensuring strategic tax planning and compliance in the face of changing global tax environments.

Core Objectives

The delegates will achieve the following objectives:

• Evaluate the various taxation frameworks and fiscal regimes affecting the upstream oil & gas sector, understanding their implications on exploration, development, and production activities
• Apply knowledge in calculating royalties and taxes, mastering practical skills in fiscal calculations for upstream projects through hands-on workshops
• Develop strategies for tax planning and efficiency, learning to utilise tax incentives and adapt to changes in tax legislation to maximise fiscal outcomes
• Explore the complexities of international taxation and cross-border issues, including double taxation treaties and transfer pricing, to manage tax risks and ensure compliance in multinational operations
• Assess the impact of environmental taxes and levies on upstream operations, integrating sustainability into tax planning
• Forestall and prepare for future challenges and trends in upstream petroleum taxation, including global tax reforms and the role of technology in tax compliance
• Implement a tax risk management framework, preparing for evolving taxation contexts and ensuring strategic planning and compliance

Training Approach

This training course combines expert-led lectures with real-life case studies, practical workshops, and group discussions to comprehensively understand taxation in the upstream oil & gas sector. It is designed to facilitate interactive learning, encouraging participants to engage actively with the content and apply theoretical knowledge to practical scenarios. By examining various global tax regimes and employing case studies from different jurisdictions, delegates gain a rounded perspective on upstream petroleum taxation. Using practical workshops for calculating royalties and taxes ensures that participants acquire hands-on experience, making complex fiscal calculations accessible and understandable. The latest research and insights supplement it and equip professionals with the skills and knowledge to navigate taxation challenges and optimise fiscal efficiency in their operations.

The Attendees

This training course is tailored for professionals seeking to deepen their understanding of taxation in the upstream sector of the oil & gas industry. It is suitable for tax professionals, financial analysts, and managers within the oil & gas industry who are involved in fiscal planning, compliance, and strategic decision-making.

Likewise, it will be valuable to the professionals but not limited to the following:

• Tax Consultants and Advisors
• Financial Analysts in the Oil & Gas Sector
• Oil & Gas Industry Managers
• Legal Professionals Specialising in Energy Law
• Government and Regulatory Affairs Officers
• Project Finance and Investment Analysts
• Environmental Policy and Sustainability Advisors

Daily Discussion

DAY ONE: INTRODUCTION TO UPSTREAM PETROLEUM OPERATIONS AND TAXATION

• Overview of the Upstream Sector: Exploration, Development, and Production Phases
• Key Concepts in Petroleum Taxation: Types of Taxes, Royalties, and Fiscal Regimes
• Introduction to Global Tax Regimes: Concessionary Systems vs Contractual Systems (PSCs, Service Contracts)
• Understanding the Tax Lifecycle of an Upstream Project
• Comparing Tax Regimes in Different Jurisdictions

DAY TWO: FISCAL INSTRUMENTS AND THEIR APPLICATION IN UPSTREAM PETROLEUM

• Detailed Analysis of Royalties, Production Sharing Agreements, and Taxation Structures
• Capital Allowances and Depreciation in the Oil & Gas Industry
• Ring-Fencing Provisions and Their Impact on Taxable Income
• Financing Costs and Their Treatment for Tax Purposes
• Calculating Royalties and Taxes for an Upstream Project

DAY THREE: INTERNATIONAL TAXATION AND CROSS-BORDER ISSUES IN UPSTREAM PETROLEUM

• Principles of International Taxation: Double Taxation Treaties, Transfer Pricing
• Managing Cross-Border Tax Risks and Compliance in Upstream Operations
• Tax Considerations in Offshore and Deepwater Projects
• Structuring International Investments and Operations for Tax Efficiency
• Navigating Tax Disputes in International Projects

DAY FOUR: TAX PLANNING AND STRATEGY FOR UPSTREAM OPERATIONS

• Tax Planning Strategies for Maximising Fiscal Efficiency in Upstream Projects
• Utilising Tax Incentives and Credits in the Petroleum Industry
• Responding to Changes in Tax Legislation and Policies
• Environmental Taxes and Levies: Impact on Upstream Operations
• Tax Planning for a Multinational Upstream Project

DAY FIVE: EMERGING TRENDS AND FUTURE CHALLENGES IN UPSTREAM PETROLEUM TAXATION

• The Impact of Global Tax Reforms on the Oil & Gas Industry (e.g., BEPS, GILTI)
• Sustainability and Taxation: Carbon Taxes and Incentives for Green Energy
• Anticipating and Preparing for Future Changes in Petroleum Taxation
• Leveraging Technology for Tax Compliance and Management
• Tax Risk Management Framework for Upstream Operations