Investor's objection to the implementation of production sharing agreements. How to work with them?

During the audit of the joint accounting account for production sharing agreements, investors react sharply to the facts of untimely reflection of the costs incurred by them during the implementation of production sharing agreements, which affect the reimbursement of the state for the costs incurred by the investors in the future.

It is advisable to correspond with investors on each of their positions. Thus, from the practice of conducting production sharing agreements, the best way to «hear the voice» of the investor is to create a table for resolving disagreements.

The table for resolving discrepancies was successfully formed based on the results of the investor's processing of the joint account verification report.

In the first column of the table, we indicate the links to the conclusions of the report, the second column of the table is devoted to the comments and disagreements of investors, the third column is devoted to the arguments for the comments of investors and the justification of the provisions of the conclusions in the report on the verification of the joint accounting account in the production sharing agreement.

It is very important not to deviate from the provisions of the joint account audit report when providing arguments to the investor's comments.

After preparing the dispute resolution table, send it to the investor and invite him to a meeting.

When developing a table for resolving disagreements with investors in production sharing agreements, the advice of Michael Schneider and Kseniia Shestakova can be successfully used:

1) provide new information relevant to the objection;

2) tailor your responses to priorities, problems, and investment criteria;

3) by putting yourself in the investor’s shoes, opportunities arise to proactively solve problems;

4) avoid interrupting, arguing, or dismissing them; instead, show that you value investor feedback by acknowledging the concerns;

5) provide clear and honest answers that address the core of the issue;

6) express your appreciation for the investor's time and attention, ask the investor about the next steps in the decision-making process, and find out when they can expect a response from you.