FINANCE AND ECONOMICS FOR O&G MANAGERS AND EXECUTIVES
COURSE OVERVIEW & LEARNING OUTCOMES
Most managers in charge of managing multi-million dollars oil and gas assets happen to be seasoned technical professionals but with, sometimes, little to no understanding of finance and economics. While these shortcomings may not be very visible at the field/ asset level, its cumulative effect tends to increasingly become obvious as all assets roll up to the corporate level. It is not uncommon for asset managers to not have an appreciation of how their decisions at the field level cascades to much larger positive or negative effects at the corporate level. Many mid to senior level oil and gas professionals are also at a loss anytime their projects do not get approved for funding.
This course gives both finance and non-finance professions in the oil industry a quick grounding in O&G finance and empowers participants with knowledge to help them make decisions that contributes to the profitable operations of the company. It also helps participants understand the underlying factors driving corporate project decisions and the tools required to plan, budget and control projects
TARGET PARTICIPANTS
O&G Managers;
Asset Managers;
Senior Executives;
Commercial Analysts;
Corporate Planners;
Corporate Finance Employees
EXAMPLE MODULES
Finance versus Accounting
Types and Sources of Finance
Accounting Systems
How Oil and Gas Transactions are recorded
Financial Statement Analysis
Oil and Gas Company Financial
Financial Ratio Analysis
Company Annual Reports
Annual Reports Analysis
Company Valuation
- Oil and gas Valuation
Oil and Gas Budgeting – objectives, methodologies and processes
Financing the Corporation
Weighted Average Costs of Capital Cost of Capital
Capital Investment Appraisal and Decisions
Appraisal Techniques – IRR, Payback, NPV etc.
Capital Allocation Techniques
Financial Risks Management
- Principles and Types of Risks
- Effective Risk Management in O&G Companies; Corporate Governance Requirements
- Qualitative Risk Assessment – what risks are “bankable”
Financial Structures
Project Economics
- Business objectives
- Risk and reward
- Commercial arrangements
- The field life cycle
- Project cash flows
- The time value of money
- Discounting and the cost of capital
- Depreciation, Depletion and Amortization (DD&A)
- Project economic models
- Decision criteria
DURATION
5 days
LOCATIONS:
Houston,
Dubai,
London,
Ghana.