The Role of National Oil Companies (NOCs) in International Oil Trading and the Interplay with Host Government Policies and Contracts

Learning Outcomes:

By the end of this course, participants will:

Understand the global commercial role of NOCs and their limitations

Evaluate how host governments influence contract structures and trade flows

Interpret and analyze key NOC-related contracts

Apply practical tools to align national interests with global trading strategies

TRAINING OBJECTIVES

This course aims to deepen participants’ understanding of:

• How NOCs function within the global oil trading landscape
• The impact of host government policies on NOC commercial behavior
• Key contractual structures governing state-NOC and NOC-partner relationships
• Strategic roles of NOCs in balancing national policy with international market demands

WHO SHOULD ATTEND?

Executives and managers at NOCs and IOCs

Energy policymakers and government officials

Legal, commercial, and trading advisors

Professionals in energy economics, risk, and compliance

Course Modules:

Module 1: The Strategic Role of NOCs in the Global Oil Ecosystem

• Historical evolution and mandate of NOCs
• Commercial vs. policy objectives: the dual role dilemma
• Positioning of NOCs in international markets: trader, supplier, or regulator?

Module 2,3: Crude Oil Marketing and Trading by NOCs

• Term vs. spot sales of equity crude
• Establishment of NOC trading arms (e.g., Aramco Trading, SOCAR Trading, SOMO)
• Price benchmarks, risk exposure, and operational frameworks
• Integration of NOC trading strategies with state production and export goals

Module 4,5: Legal and Contractual Interfaces

• Production Sharing Agreements (PSAs) and NOC entitlements
• Joint Operating Agreements (JOAs) and marketing provisions
• Lifting arrangements, government take, and crude allocation
• Risk-sharing and dispute resolution mechanisms in NOC contracts

Module 6: Host Government Policies and the Impact on NOC Operations

• Domestic supply obligations, export controls, and pricing regulation
• Influence of national energy security and geopolitical considerations
• OPEC coordination and production quotas
• Transparency initiatives (EITI), ESG compliance, and anti-corruption safeguards

Module 7,8: Commercial Strategies and Policy Trade-offs

• Aligning national policy goals with NOC competitiveness
• Managing external market shocks, sanctions, and subsidy regimes
• Contract negotiation and crude pricing strategies in volatile markets
• Transparency and accountability in trading practices

Module 9,10: Global Case Studies and Interactive Workshops

• Nigeria (NNPC): Trading reform, partner relationships, and crude allocation
• Iraq (SOMO): Sovereign control and commercial adaptation
• Saudi Arabia (Aramco): Strategic trade positioning and downstream expansion
• Mexico (PEMEX): Policy shifts and marketing autonomy

Participants will engage in:

• Simulations of oil lifting and marketing agreements
• Workshops on host country policy impact scenarios
• Analysis of real contract clauses and risk scenarios