The INTOSAI Working Group on Audit of Extractive Industries (WGEI) in collaboration with AFROSAI- E (AFRICAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS – ENGLISH (AFROSAI-E) is happy to announce a training course dedicated to understanding and auditing management of Production Sharing Agreements/Contracts (PSAs).
The training will be most relevant to SAIs in countries that implement the PSA model. Participants will gain knowledge on how to identify risks and select possible audit topics in this area.
Topics to be covered include:
- UNDERSTANDING PRODUCTION SHARING AGREEMENTS/CONTRACTS (PSAs)
1.1 What is a PSA?
- Understand the main structure of a PSA
- PSA preamble
- Contracts/agreements coherence in the legal system
1.2 Identifying parties and regulatory provisions
- The parties’ principal rights and obligations under a PSA
- Locate and interpret terms in a PSA
- State participation
- Pipeline transportation
1.3 Financial provisions and production disposition
- Work program budgets/investments
- Work programmes
- Sale of oil and gas – valuation and measurement
- Reference price
- Marketing and lifting
1.4 Cost recovery, production sharing, rentals, bonuses and royalties
- Understand the concepts of profit oil/gas, cost oil/gas and cost recovery limit
- The use of sliding scales and tranches to increase govt. take when profits increase
- Government take and other revenues
1.5 Legal and non-operational matters
- Financial guarantees, banking and insurance
- Revision of work programme
- Title to assets
- Entitlement to data
- Entitlement to representatives
- Local purchases
- Conflict negotiations, dispute settlements and arbitration
- Force Majeure
- Termination of PSA
1.6 Organisational and cooperative matters
- Management committees
- Accounting and audits
- Training and employment of local citizens (local content)
2. PRINCIPLES OF GOOD GOVERNANCE
- Supervision and control
- Role of the SAI
- Prerequisites for good governance
3. IDENTIFY RISKS
- What is likely to go wrong?
- The issue of confidentiality
- What aspects are most relevant for auditors?
- Risk mapping exercise
The course will take place in Pretoria, South Africa from 3rd -7th February 2020
This is to provide you with advance information and request you to set aside this period in order to participate in the training.