Upstream Economics, Financial and Risk Analysis
|In-House||Agreed with client||Flexible||POA|
|London||5 days||17 April 2023||£4,250.00|
|London||5 days||28 August 2023||£4,250.00|
|London||5 days||18 December 2023||£4,250.00|
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?
- Upstream oil and gas industry professionals, managers and discipline experts, who need to gain a deeper understanding of upstream lifecycle costing
- Persons involved in industry oversight, from regulators, government agencies, non-governmental organisations (NGOs), charities, special interest and campaigning groups that need to better understand the cost constraints under which oil companies operate
- Early career professionals wishing to advance their understanding of upstream oil and gas costing and economics issues
- This course is designed to teach how to maximize the return on investments by good decision-making processes based on the commercial viability of projects and mitigating risks in projects and handling uncertainty as well as the hands-on experience solving case study-based examples.
Oil and Gas Industry Overview
- Oil and gas market overview in global markets.
- Oil and Gas major actors and organizations
- Major conversion of factors from gas to gas-liquids, to barrels of oil equivalent.
- Pricing of crude oil, natural gas based on heating value.
- Oil and Gas contracts, PSA, Concession Royalty and Tax, Risk Service.
Project Economics and Measures of Performance
- Discount rates WACC and CAPM,
- Project cash flow analysis, Asset valuation and the indicators NPV, IRR, DPI, MCE, CoC, Payback, RoE, other performance measures.
- The effect of debt financing,
- Sensitivity to changes in key variables. Tornado and spider charts
Introduction to Financial Statements
- Key corporate financial statements.
- Review and discussion of the key measures of financial performance,
- Steps required to build pro forma financial projections to show how a new project will affect corporate performance.
Project Financing: Commercial Debt Finance
- Corporate and project financing
- Sources of debt and equity financing, public/private, multilateral/bilateral sources of financing; Senior Debt, Deffered, Price linked Mezzanine
- Offer Structure and Risk assessment/mitigation in the offer;
- Financing structure, plan;
- Negotiating the commercial terms
- Preparing the financing documents
Project Risk and Uncertainty
- Identifying and quantifying projects risks and uncertainty into project analysis.
- Using statistical measures to quantify risk.
- Incorporating risk and uncertainty into project analysis.
- Key risk assessment methods: scenario analysis and sensitivity analysis.
- Decision Tree Analysis and Monte Carlo Simulation
- Probability Theory and Quantitative Analysis
- Introduction to probability theory including probability density functions,
- Applying probability theory in decision analysis with concept of expected value
Managing Price Risk Using Financial Derivatives
- Financial Risk Management and risk mitigation;
- Markowitz portfolio theory
- physical, forward and futures markets;
- Typical futures market transactions;
- Hedging, swaps and options;