COURSE DIRECTOR:

Robin Chatterjee BSc BEng MBA CIMA

International Business Consultancy Ltd

Course Programme1 Introduction to International Gas Trade and Contract

Structure in the Gas Chain

2 Gas/LNG and Gas Transportation Contracts

3 Model Gas/LNG and Gas Transportation Contracts

4 LNG Shipping, Risk Mitigation, Different Types of Contract

and Contract Negotiation

5 Gas/LNG Pricing and Pipeline Transportation Tariffs

6 Gas/LNG Contracting Strategy and Pricing; Key Aspects of

Project Finance

This brochure has been produced using environmentally friendly paper sourced from

sustainable forests and is chlorine free

FUNDAMENTALS OF

Legal agreements and commercial mechanisms in the gas and LNG value chains, from exploration and production to shipping, transportation and trading

"Provides detailed knowledge of key agreementsand negotiation tactics,

helping you avoid costly pitfalls"

"Demystifies the entire value chain, withcontractual, pricing and finance strategies to

give you the competitive edge"

DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS

Supported By:

CPD 21

hours

CEUs

2.1

Enquiries tel: +44 (0)20 7017 4237 Visit: www.ibc-academy.com/glcp+1 (646) 957 8929

Commences:

26th June 2012

Apply by11th May 2012

to SAVE £100 /US$160

SAVE up to 40% and improve performance

with cost-effective tailored in-company courses

for groups call +44 (0)20 7017 4455

or email ct@informa.com

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QR reader app

■ New starters, recent recruits and graduates• Experts working on a temporary basis in the industry• Specialists needing a wider understanding• Professionals working alongside the industry • Employees moving into a new area of specialisation

IDEALFOR:

■ Personnel in natural gas exploration, production and trading needing to understand contracts and pricing mechanisms

■ Professionals in gas transmission, LNG shipping, distribution and power generation

■ Legal practitioners wishing to increase or update their knowledge, or specialise in a new sector

■ Analysts and strategists in project finance, asset management or investment research

■ Commercial, contract and project managers looking to improve their negotiation techniques

■ Engineers and technicians seeking an insight into the contractual framework of gas/LNG operations

■ Government advisors, policy makers, economists and regulators

Solicitors

Regulation

Authority:

100% of CPD

requirements

GAS & LNG CONTRACTS & PRICING

Tel: +44 (0)20 7017 4237 / +1 (646) 957 8929

The complex geopolitical nature of gas and LNG sourcing, and the long term nature of gas contracts between buyers and sellers means it is essential tounderstand commercial and legal issues.

A solid grasp of the principles of global gas and LNG supply, available techniques for price determination, prevailing contract structure andagreement negotiation techniques is crucial to be able to provide contract safeguards for the future. Misjudgement in any of these areas could result inunwise 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 services 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 Gas/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 markets and arbitrage

The dynamic blend of downloadable study materials, expert tutorial support plus peer interaction via a dedicated online forum will enable you togain 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 learning annually with us.

I look forward to connecting with you online during the course.

Dear Colleague,

Robin ChatterjeeCourse Director

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 • Gaslink 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 Offshore SE • SPT Group • Statoil Asa • Subsea 7 • Suez-Tractebel • Total E&P • Validus Reinsurance Ltd.

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

Transportation contracts with overseas JV partners 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.

COURSE DIRECTORHOW DOES THE COURSE WORK?The course starts on Tuesday 26th 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 LEARNINGIncreasingly, we all face more pressures in our business lives. Finding time toattend courses of any kind can be very difficult and well meant plans are often putaside indefinitely.

Distance learning can be the solution to your training needs. You can enjoy the fullbenefits of studying, whilst still in employment using this freedom and flexibilityto study around your other commitments.

IBC Academy delivers high quality training to theports, logistics, energy, environment and safetyindustries, assisting individuals and organisations toachieve goals by developing skills, knowledge andperformance. We address the growing need for

professional training in specific industry areas by providing open and in-houselearning and training solutions, delivered by leading industry experts. www.ibc-academy.com

DELIVERED BY

Module OneIntroduction to International Gas Trade andContract 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 tradingnations

- 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 TwoGas/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

Module ThreeModel Gas/LNG and Gas TransportationContracts• 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 FourLNG 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

• 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), resistancepoint

- 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 FiveGas/LNG Pricing and Pipeline TransportationTariffs• 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 valuecriteria

- 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

Module SixGas/LNG Contracting Strategy and Pricing; KeyAspects 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

Apply online at www.ibc-academy.com/glcp

COURSE SYLLABUS

Enrolment to this Course is subject to the IBC Academy Distance Learning Terms and Conditions at www.ibc-academy.com/IBCADLTC. Your attention is drawn in particular to clauses 3, 4 and 13 of theterms and conditions which have been set out below:

3. TAXES The fees stated are exclusive of any applicable VAT, sales, service or similar taxes (which willbe charged, where applicable, at the appropriate rate as at the date of invoice). Where payment issubject to a withholding tax the student will apply the reduced rate under the appropriate double taxtreaty, if applicable, and agree to provide IBCA with a certificate of tax deduction within three monthsof payment. If a certificate of tax deduction is not provided within three months, you will becomeimmediately liable to pay the outstanding amount.

4. PARTICIPANT CANCELLATION POLICY You may cancel your place on the Course by giving noticein writing to the Course Administrator up to (and including) 7 days from the date IBCA confirms youracceptance to the Course in accordance with Condition 1 and you will not be liable for the payment ofany fees and any fees already paid to IBCA for the Course will be refunded. If IBCA receives your noticeof cancellation 8 days or more from the date IBCA has confirmed your acceptance to the Course youwill 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 yourcancellation), provided such notice of cancellation is received by IBCA before the first day of theCourse. IBCA regrets that no refunds can be given for any cancellation notice it receives on or afterthe 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 DataProtection Act 1998. The personal information shown on the application form, and/or provided byyou, will be held on a database and may be shared with companies in the Informa Group in the UKand internationally. This information may be used for direct marketing purposes. If you do not wishyour 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: integrity@iirltd.co.uk. Occasionally yourdetails may be obtained from, or made available to, carefully selected external companies formarketing purposes. If you do not wish to receive details about their products and services, pleasecontact the Database Manager. Registered in England No.1835199. VAT registration number GB 3654626 36. IIR Ltd. Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK.Telephone calls to IIR Ltd may be recorded or monitored to check the quality of the service provided.

INTERESTED IN AN

IN-COMPANY OR

CUSTOMISED DELIVERY

OF THIS COURSE?

This course can be delivereddirectly to your company ororganisation by distance learningor instructor led workshops whilstincluding a range of additionalbenefits to meet your specificbusiness objectives:

• Customised delivery -additional company focusedcontent, case studies andexamples

• Blended learning -incorporating workshops, onlinetutoring, additional assessmentand skills training

• Flexibility - scheduled to suityour requirements

• Support - dedicated staffproviding required progressreporting

To find out more about thebenefits of Corporate Training andhow distance learning can be acost effective means of achievingyour training goals, telephone +44 (0)20 7017 4455or email ct@informa.com.

TERMS AND CONDITIONS

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 coursesvisit us online at www.ibc-academy.com or emailibc-academy@informa.com

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Course Code

FLR2264

FUNDAMENTALS OF GAS & LNG CONTRACTS & PRICING

DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS Commences 26th June 2012

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