Asset Valuation & Economic and Financial Modelling
|In-House||Agreed with client||Flexible||POA|
|London||10 days||20 March 2023||£6,850.00|
|London||10 days||19 June 2023||£6,850.00|
|London||10 days||16 October 2023||£6,850.00|
If you are unable to attend this course on the dates above, please contact us to discuss alternative options.
Please note that prices shown above are exclusive of VAT (20%).
Who should attend?
- Senior managers within the Oil & Gas sector or those identified via organisational talent management for fast track to a senior role
- Public sector officials with responsibility for the state management of Oil & Gas resources
- Engineers and Project Managers who are looking to develop leading edge practice for both themselves and their organisation
- Delegates will have knowledge on how to build an upstream Oil and Gas projects economic/financial model in a structured and transparent way. They will gain competency in the Economics and financial modelling of various fiscal regimes and modelling techniques on asset valuation, financing commercial offer structures and bidding.
Oil and Gas Industry Overview
- The fundamentals of economics: background of and its application to the oil and gas
- Oil and Gas contracts, PSA, Concession Royalty and Tax, Risk Service. Tax regimes and Depreciation methods.
Economics and Finance in the Upstream Industry
- Discount rates WACC and CAPM,
- Project cash flow analysis, Asset valuation and the indicators NPV, IRR, DPI, MCE, CoC, Payback, RoE and other measures of project performance.
- Corporate and project financing.
- Offer structures in M&A projects
- Reducing the M&A risks in the Commercial Offer.
- Sources of debt and equity financing.
- Financing structure.
- Negotiating the commercial terms.
- Preparing the financing documents
- Building a dynamic economic and financial model from scratch in Excel based on a fiscal regime trainee demand, i.e. the PSA, Concession or Risk Service Contracts and then scenario analysis dynamic plotting charts (production profile, cash flow, break-even unit costs, waterfall spider tornado charts etc. )
- Different depreciation methods by modelling
- Tax losses carry forward/back
- Cost recovery methods
- Sliding scales R/C waterfall factors
- Capital allowances and separating between expensing and capitalizing
- Financial modelling from scratch based on the debt-equity structure, mezzanine, deferred payments etc.
- Debt and equity modelling
- Hedging types and impact of the hedging
- Economics of self-financing, loan leasing etc
- Farm-in Farm out projects modelling
- Breakeven and minimum economic reserves.
- Commercial Offer structures tricks
- Risk shared between seller and buyer
- Risk mitigation approaches in offer structure
- Oil price linked deferred and contingent, mezzanine payments methods by modelling
Effective Risk Management
- The key concepts and elements of risk management
- Managing Market Risk
- Managing Credit Risk
- Managing Liquidity Risk
Practical Financial Modelling
- Key principles within Financial Modelling
- Constructing key financial models
- Linkage of models and sub-models
- Scenario Planning Applications