PETROCONSULT ENERGY DIPLOMA PROGRAM (6 WEEKS)

Transcription

1 PETROCONSULT ENERGY DIPLOMA PROGRAM (6 WEEKS) BACKGROUND As a result of critical needs assessment of technical know-how and industry management specialization, requirements, we are proud to provide a set of specialized management diploma programs in three core areas. 1. Diploma in Oil & Gas Accounting & Finance 2. Diploma in Petroleum Economics 3. Diploma in Oil & Gas Business Management 4. Diploma in Oil & Gas Supply Chain Management All of the programs represent the outcomes of research into areas of knowledge group in the non engineering management of oil & gas exploration and production operations. The actual nature of theses core management areas has therefore necessitated the need to equip national oil companies (NOC), International Oil Companies (IOC) and the Services Companies existing and new staff who have been identified as potential future managers & executives. Program Description Each of these programs consists of three modules: Module 1: Module 2: Module 3: Detailed Oil & Gas Exploration & Production Operations Core topics peculiar to each discipline & diploma Case studies, Class exercises, Assignments / Projects, Industry seminars (available and relevant) & Open day to the UK Energy Institute in the city of London.

2 The program will consist of 1 Mandatory Module in Oil & Gas Business Development and Management and 2 Modules decided by choice of subject area. MANDATORY MODULE Module 1 Oil & Gas E&P Business Development and Management 1. DIPLOMA IN OIL & GAS ACCOUNTING AND FINANCE Module 1 [Mandatory] 2 weeks A. Oil & Gas E&P Business Development and Management Module 2 4 Weeks 1. Oil & Gas Accounting & Finance (2 weeks) (AF01) o Part 1: Oil & Gas Accounting in (E&P) JV & PSC Operations o Part 2: Budgeting, Cost Control & Financial Management for (E&P) Operations 2. International Oil and Gas Exploration &Production Taxation(AF03) And Cost Recovery Mechanism in Oil & Gas PSC & Service Operations (CEM01) Module 3 - Case Studies - Group Exercises - Etc 2. DIPLOMA IN PETROLEUM ECONOMICS Module 1 [Mandatory] 2 weeks A. Oil & Gas E&P Business Development and Management Module 2 4 weeks A. Petroleum Exploration & Production Economics (CEM04) And B. World Oil & Gas Fiscal Systems & Analysis of E & P Contracts Types (CEM03)

3 Module 3 - Case Studies - Group Exercises - Etc 3. DIPLOMA IN OIL & GAS BUSINESS DEVELOPMENT Module 1 [Mandatory] 2 weeks A. Oil & Gas E&P Business Development and Management Module 2 4 weeks A. Oil & Gas Project Management And B. Global Crude Oil Marketing Mechanisms, Alternative Funding Arrangement And Entitlement Crude For Cost Recovery In E&P Operations Module 3 - Case Studies - Group Exercises - Etc 4. DIPLOMA IN OIL & GAS SUPPLY CHAIN MANAGEMENT Module 1 [Mandatory] 2 weeks A. Oil & Gas E&P Business Development and Management Module 2 4 weeks A. Engineering & Materials Contract Management B. Procurement & Supply Chain Management C. Warehouse Management D. Developing & Managing E Commerce for Procurement E. Additional & Local Content Policy Critical ways to enhance sustainability International examples of successful National / local Content

4 F. UK North Sea Supply Chain Fundamentals for Cost Reduction Module 3 - Case Studies - Group Exercises - Etc BASIS OF PROGRAM Registration: Full and complete registration is required no less than 2 month before program Commencement Participant must be in full time employment Funding/Sponsorship: Employer funded. VISA MATTERS Visa: Consular letter will be provided upon complete completion for relevant visa application. Participants and sponsors are responsible for obtaining relevant visa required For UK Border Agency (UKBA) purposes, the provision of the following is essential: - Timely Registration completion inclusive of payment - Proof of employment status of all participants, confirming return to their job offers upon completion of the program. COURSE DELIVERY MODE - 70% theoretical seminar/classroom setting - 30% interactive to include the following: o Case Studies o Class Exercises o Interactive Group work o Home Assignments o Relevant visits to course related locations o SPE Technical Seminars (relevant and available) o Open-day at the Energy Institute etc.

5 COMPLETION AND CERTIFICATION (BAC Accredited) PETROCONSULT is British Accreditation Council (BAC) acclaimed. All participants of clients are professionals and current working employees within the Oil & Gas Industry, with their respective company as sponsor for their attendance. All are proven oil and gas professionals and as such are expected to be mature learners, present for the furthering of their careers. A Diploma will be issued upon the successful completion of the selected diploma program. FACULTY PROFILE PETROCONSULT is British Accreditation Council (BAC) acclaimed and all our consultants are proven oil and gas professionals, and as such are highly experienced and acclaimed industry professionals, with reputable statuses within the industry and with operational standards bolstering our impeccable quality of service. ACCOMODATION AND LIVING IN THE UK DURING Participants will be responsible for own accommodation, transportation and feeding. Adequate accommodation is available within in and around the surrounding areas at affordable rates, ranging from per week (per person) for studio apartments. Additional Services We will be happy to offer the following assistance: Locating suitable accommodation for participants Locating suitable shared accommodation if required Making reservations for individuals at accommodation of choice Please note: o This transaction can only be carried out on your behalf as long as full payment has been made directly into PETROCONSULT upon registration completion. o Receipts and proof of payment documents for this service will be returned to client for reference and accountability.

6 PAYMENT POLICY Full payment upon registration is required after which supporting documents are issued for necessary visa application. All amounts paid are refunded in the event of cancellation due to visa matters. All other cancellations less than 14 working days prior to program commencement shall be subject to a 50 percent deduction. Please contact administration department for larger groups. See below for outline of Diploma Curriculum.

7 Diploma in Oil & Gas Accounting & Finance This is a six week program comprising three modules: Module 1: 2 Weeks Module 2: 3 Weeks Module 3: 1 Week Module 1 - this module is common to all the three diploma programs. 1. Overview of petroleum hydrocarbon resource Technical nature of oil & gas resource The chemistry Basic exploration, drilling & production 2. International Oil companies and petroleum production IOC s worldwide operations Strategic importance of petroleum reserves Overview of integrated worldwide petroleum operations IOC and developing exporting countries relationship and implications for global petroleum production The emergence of National Oil Companies as E&P operators The how-to on new business development strategies for the NOCs 3. Key issues in worldwide petroleum exploration & production Reserve estimates Geopolitics of oil & gas business Legal issues Technology Market / pricing Project cost & funding Materials & procurement 4. Petroleum Reserve Evaluation Why Petroleum Reserves Evaluation? Reservoir Assets Economic Evaluation

8 5. Exploration & Production Fiscal Terms Joint Venture (JV) & Production Sharing Contracts (PSC) Hybrid PSC Service Contracts International Comparison of Contract Types The Memoranda of Understanding: a) What it is b) Comparison of oil and gas MOUs from different countries. 6. Petroleum Economics Exploration & Production Economic Analysis & Decision Criteria Developing PSC & JV Cash Flows Taxation & Tax Revenue Generation Strategies 7. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation and Cash Flow Analysis Decision Tree Analysis 8. Energy Projects Finance & Financial Management The financing options (alternative funding options local & offshore) Regional comparison of CAPEX & OPEX for negotiation purposes Customization of funding options as veritable tool for boosting local content objectives Economic Analysis of Project s Country of Origin World Bank and IMF Ratings Exchange, Interest and Inflation Rates as Key Factors Financing Growth through Buying another Company (or Producing Asset) Other Debt Financing Options & their Exigencies Successful Financial Management Skills (Beyond the figures) 9. Materials & Contract Management Technical & Commercial Issues in Contract Policy Formulation Bidding & Bid Evaluation Selection Criteria & Processes

9 Legal Processes in Contract Management Legal Dispute Resolution in Relation to Contracts Engineering Contracts Management Peculiarities 10. Crude Oil Marketing Issues Crude Oil Supply and Demand OPEC and Non-OPEC Supply & Strategies Issues & Projections for the Future Pricing: Underlying Basis, Contango & Backwardation 11. Strategic Management of Oil & Gas Companies Strategic Analysis of a petroleum company Understanding strategic management Analysing & understanding the external and internal environments Focusing on core competencies & core business Value extraction along oil & gas supply chain 12. The corporate business plan Development Resource requirements & allocation Benchmarking for growth & Asset optimization Minimizing political risks in oil & gas business management Human resource development and succession planning at middle & top Management levels Econometric application in business forecasting Module 2 A. Oil & Gas Accounting in E&P, Operations under Concessionary (Royalty & Tax), Production Sharing Contracts (PSC) & Service Contracts AF01 Module 1 1. Petroleum Industry Characteristics & Overview of Exploration & Production 2. Oil & Gas (E& P) and Cost Classification, Ascertainment, & Treatment of Costs 3. Accounting Principles (including Accounting Methods) & Financial Policies in Relation to O&G Upstream Operations 4. Joint Venture Operating Agreements & Operations (including Cash Calls, JV 5. Billings, Multi-Currency Accounting, JV Accounts Reporting to Host Country) 6. Cost Allocation for both JV & PSC (including OPEX, CAPEX, Financing Charges, and Head Office/Parent Co. Overheads) Asset Usage/Tariff Charges)

10 7. E&P Operations Funding Arrangements & Accounting Implications e.g. for Carried Interest Financing, Farm Outs etc. 8. Oil & Gas Revenue Accounting (including pricing mechanisms for various Spot, Forward, Term & Take or Pay Contract Types, matching of delivery dates & applicable prices; Royalty Calculations, Accounting for Over and Under lifts, etc.) 9. Joint Venture (JV) Agreements & the Memorandum of Understanding (MOU) 10. Allowable & Non-Allowable Costs 11. Authorization for Expenditure (AFEs) 12. JV Accounting Reports 13. PSC Agreements (Understanding the Contract Type, Including cost oil, royalty in cash or kind, cost recovery & cost recovery ceilings, etc). 14. Accounting Implications of Carried Interests, PSC Accounting Procedure and Reporting Processes B. Budgeting, Cost Control & Financial Management for Oil & Gas (E&P) Operations AF01 Module 2 1. Financial Planning & Budgets 2. Budgets Preparation: An Overview 3. JV Budgets vs. Corporate Budgets 4. Operated vs. Non-Operated Budgets 5. Budgets Analysis 6. Financial Controls Systems (including the control environment: internal /external controls) 7. Budgetary Control (including variance analysis, project cost control, production cost reporting & control) 8. AFE Administration & Budget Control 9. Performance Bench Marking & Performance measurement 10. Oil & Gas Financing Options 11. Oil & Gas Tax Regimes (Profit Tax & Production Tax) 12. Financial Performance Analysis for Multinational Oil Co 13. Understanding the Financial Statement of International Oil Companies C. International Petroleum Taxation AF03 1. Upfront Taxes in Oil & Gas Exploration & Production Oil & Gas License & Bonus Concept Bonus Types: Bidding, Signature and Production Bonus Types in Different Countries i.e. Indonesia, Malaysia, USA, Brazil, Qatar etc.

11 Libya s Unprecedented $1billion Signature Bonus: a close review 2. Royalties Royalty Rates in Different Countries (Equatorial Guinea, Venezuela, Gabon, Yemen, U.S.A., Nigeria, UK, China) Fixed and Sliding Scale Royalties Royalties in Cash & In Kind & Implications for Revenue/Turnover Calculation R- Factor Royalties (Philippines, Peru) Volume Determination for Royalty Calculation 3. Petroleum Revenue Tax (PRT) VS. Petroleum Profit Tax (PPT) & Hydrocarbon Tax Impact of PRT Vs PPT on Profitability: Pre-Tax & Post Tax Income PRT and PPT Rates In Oil & Gas Producing Countries Worldwide Other Features in Oil & Gas Taxation: Depletion Allowances, Tax Credits, the French Style Provisions and Severance Taxes Corporate Income Tax: Rates, Group Taxation, Ring Fencing Treatment of Interest Supplemental Petroleum Tax (Trinidad & Tobago) Tax Deductibles: Import Duty Excise Duty etc. The MOU / PSA and Cost of Capital Recovery (including cost of capital on Impairment Expense) 4. The Petroleum Profit Tax, Petroleum Revenue Tax and Resolution of Conflict between Provisions of Other Legislations /Agreements E.g. Cost of Capital Recovery Tax Inversion & the Provisions of the MOU Conflicting Aspects of the Investment Tax Allowance (ITA) 5. Oil & Gas Contract Types & Impact on Taxation Revenue for Government & Profitability for Oil Company Joint Venture (JV) and Profitability of Operation JV Progressive Tax Rates Profit Sharing Under JV Production Sharing Contract (PSC) Sliding Scales for Cost Oil & Profit Oil Cumulative Cost Recovery and Excess Cost Oil R-Factor Production Sharing (Iran, India, Peru)

12 Service Contracts Global Service Fee System Service Fee & Buy-Back Provisions 6. Sensitivity Analysis For Impact Of the Following on Government Revenue Generation: Bonuses, Rentals, Royalties & Taxes in Terms of Rates & Timing of payment Computation of Government Tax Take and Comparison of Government Tax Revenues in Different Countries Tax Treaties and Tax Consolidation across Borders in respect of Oil & Gas Operations D. Cost Recovery Mechanism in Oil & Gas PSC & Service Operations CEM01 1. Oil & Gas Exploration & Production Contract Types: Joint Venture (including Typical Flow of Fiscal Components in Concessionary (JV) System) Product Sharing Contract (PSC) The PSC/PSA and Fiscal System Contractual Stability PSC Fiscal System's Flow Types of PSCs in Various Producing Countries Other Factors Used in Profit Oil Share Service Contract 2. Other Provisions of Oil & Gas (E&P) Transactions & Contracts (E.g. JOA, PPTA, MOU & PSA) Royalty, Petroleum Profit Tax, Petroleum Revenue Tax Tax Holidays Investment TAX Allowances Tax Inversion (Incentive & Penalty Calculations) Taxation under JV vs. PSC and Service Contract Taxation Reserves Booking under JV vs. PSC and its implications The Principle of PSC Cost Recovery Ceiling PSC Cost Recovery Mechanism & Modelling (including Capital Allowance, Allowable Intangible Costs, Investment Tax Allowance and the recovery of Gas Cost from Oil Operations) Module 3 - Case Studies - Group Exercises

13 - Seminar - Guided tour of UK Energy Institute Diploma in Petroleum Economics This is a six week program comprising of three modules: Module 1 2 Weeks Module 2 Module 3 Module 1 - this module is common to all the three diploma programs. 1. Overview of petroleum hydrocarbon resource Technical nature of oil & gas resource The chemistry Basic exploration, drilling & production 2. International Oil companies and petroleum production IOC s worldwide operations Strategic importance of petroleum reserves Overview of integrated worldwide petroleum operations IOC and developing exporting countries relationship and implications for global petroleum production The emergence of National Oil Companies as E&P operators The how-to on new business development strategies for the NOCs 3. Key issues in worldwide petroleum exploration & production Reserve estimates Geopolitics of oil & gas business Legal issues Technology Market / pricing Project cost & funding Materials & procurement 4. Petroleum Reserve Evaluation Why Petroleum Reserves Evaluation? Reservoir Assets Economic Evaluation

14 5. Exploration & Production Fiscal Terms Joint Venture (JV) & Production Sharing Contracts (PSC) Hybrid PSC Service Contracts International Comparison of Contract Types The Memoranda of Understanding: a) What it is b) Comparison of oil and gas MOUs from different countries. 6. Petroleum Economics Exploration & Production Economic Analysis & Decision Criteria Developing PSC & JV Cash Flows Taxation & Tax Revenue Generation Strategies 7. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation and Cash Flow Analysis Decision Tree Analysis 8. Energy Projects Finance & Financial Management The financing options (alternative funding options local & offshore) Regional comparison of CAPEX & OPEX for negotiation purposes Customization of funding options as veritable tool for boosting local content objectives Economic Analysis of Project s Country of Origin World Bank and IMF Ratings Exchange, Interest and Inflation Rates as Key Factors Financing Growth through Buying another Company (or Producing Asset) Other Debt Financing Options & their Exigencies Successful Financial Management Skills (Beyond the figures) 9. Materials & Contract Management Technical & Commercial Issues in Contract Policy Formulation Bidding & Bid Evaluation Selection Criteria & Processes

15 Legal Processes in Contract Management Legal Dispute Resolution in Relation to Contracts Engineering Contracts Management Peculiarities 10. Crude Oil Marketing Issues Crude Oil Supply and Demand OPEC and Non-OPEC Supply & Strategies Issues & Projections for the Future Pricing: Underlying Basis, Contango & Backwardation 11. Strategic Management of Oil & Gas Companies Strategic Analysis of a petroleum company Understanding strategic management Analysing & understanding the external and internal environments Focusing on core competencies & core business Value extraction along oil & gas supply chain 12. The corporate business plan Development Resource requirements & allocation Benchmarking for growth & Asset optimization Minimizing political risks in oil & gas business management Human resource development and succession planning at middle & top Management levels Econometric application in business forecasting Case Studies & Group Exercises * Module 1 is compulsory for all three diplomas. Module 1 has a 2 week duration. Module 2 (3 Weeks) A. World Oil & Gas Fiscal System & Analysis of Exploration & Production Contract Types CEM03 1. Overview of Exploration license requirements Oil & Gas License Bonuses Bonus Concept Bonus Types: Bidding, Signature and Production Bonus Types in Different Countries i.e. Indonesia, Malaysia, USA, Brazil, Qatar etc.

16 2. Royalties Royalty Rates in Different Countries (Equatorial Guinea, Venezuela, Gabon, Yemen, U.S.A., Nigeria, UK, China) Fixed and Sliding Scale Royalties Royalties in Cash & In Kind & Implications for Revenue/Turnover Calculation R- Factor Royalties (Philippines, Peru) Volume Determination for Royalty Calculation 3. Tax / Economic Rent Fiscal Instruments from Different Countries Petroleum Revenue Tax (PRT) Petroleum Profit Tax (PPT) Impact of PRT Vs PPT on Profitability: Pre-Tax & Post Tax Income PRT and PPT Rates In Oil & Gas Producing Countries Worldwide Other Features in Oil & Gas Taxation: Depletion Allowances, Tax Credits, the French Style Provisions and Severance Taxes Corporate Income Tax: Rates, Group Taxation, Ring Fencing Treatment of Interest Supplemental Petroleum Tax (Trinidad & Tobago) Tax Deductibles: Import Duty Excise Duty etc. The MOU / PSA and Cost of Capital Recovery (including cost of capital on Impairment Expense) 4. The Petroleum Profit Tax, Petroleum Revenue Tax and Resolution of Conflict between Provisions of Other Legislations /Agreements E.g. Cost of Capital Recovery Tax Inversion & the Provisions of the MOU Conflicting Aspects of the Investment Tax Allowance (ITA) 5. Oil & Gas Contract Types Joint Venture (JV) and Profitability of Operation Financing Options for JV Operations Carried Interest Concepts JV Progressive Tax Rates Profit Sharing Under JV Production Sharing Contract (PSC) Sliding Scales for Cost Oil & Profit Oil Cumulative Cost Recovery and Excess Cost Oil

17 Variations in PSC Worldwide (Malaysia, Indonesia, Libya, Oman, Egypt, Iran, Nigeria etc) Exploration & Production Cash Flow Analysis under PSC R-Factor Production Sharing (Iran India, Peru) Service Contracts Global Service Fee System Service Fee & Buy-Back Provisions Hybrid Fiscal Systems Mixture of the Three Main Fiscal Systems in Different Multinational Oil Companies 6. The Legal Framework of Oil & Gas Contract Types 7. Profitability Analysis of Fiscal Systems Overview of Economic Concepts/Tools for Profitability Analysis (NPV, DCF, ROR, EMV) Economic Analysis of Oil &Gas Exploration & Production (Concession/Acreage Based Analysis) Exploration & Production Cash Flow Projection (JV and PSC) 8. Sensitivity Analysis for Impact of: Bonuses, Rentals, Royalties, Taxes, etc. Timing Of payment (Front End Loading Vs Back End Loading) Economics of Risk Sharing Geological Risk, Cost Over-runs, Reserve Risks And Price Risk Understanding Various Memoranda of Understanding (MOU) for Profitability Analysis Computation of Government Take And Comparison of Government Take in Different Countries. 9. The Fiscal Regimes of USA Gulf of Mexico B. Petroleum Exploration Risks & Decision Analysis CEM06 1. Quantification of uncertainty and risk in exploration, reserves, cost and economic evaluation. 2. Exploration Risk Analysis Using Decision Tree Technique for Economic Monetary Value (EMV) Estimation. 3. The application of risk in the evaluation of exploration prospects. 4. Key Filed Development Considerations: Efficient monitoring of reservoir performance

18 Reduction of Unnecessary Wells Drilling Wellbore and surface systems Well testing and automated production systems Economic impact of operating plans Identifying and acquiring critical data, data acquisition, and analysis 5. Develop knowledge of upstream petroleum economic discounted cash flow evaluation methodologies 6. Become familiar with the derivation, calculation and application of economic metric such as NPV & IRR, (discounted cashflow) Payback & ROCE. 7. Incremental and project consolidation analysis 8. Understand government and oil company perspectives 9. Understand the financial structure and mechanisms of production sharing contracts including the calculation of cost recovery and profit oil splits 10. Construct production sharing contract and tax & royalty concession spreadsheets models (Excel-Based Models) 11. Identify key risks and uncertainties for your projects 12. Make better recommendations and improve the quality of your decision making. C. Petroleum Exploration & Production Economics CEM04 1. Oil & Gas Contract Types & Fiscal Policy 2. Reservoir Volume Estimation Methods Reservoir Volume Estimation Methods 3. Economic Analysis Economic Yardsticks and Quantitative Measures Economics Decision Tools Economic Analysis Applied to E & P Operations Petroleum Oil & Gas Project Economics 4. Key Field Development Considerations Efficient monitoring of reservoir performance Reduction of Unnecessary Wells Drilling Wellbore and surface systems Well testing and automated production systems Economic impact of operating plans Identifying and acquiring critical data, data acquisition, and analysis

19 5. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation And Cash Flow Analysis Decision Tree Analysis 6. Field Development Options / Considerations & Economics Basic Concepts in Field Development (including Reservoir Characterization, Phase Behaviour & Drive Mechanism) Optimum Decision Making in Field Development Optimum utilization of wells (including new wells or not, well placing and spacing requirements, in-fill wells etc.) Well / Field Intervention (including optimum completion, stimulation and identification of production strategy) Pressure & Pressure Maintenance Operation (PMO) and Economic Considerations Economics of Surface Facilities Production Optimization & Economics (including well lift, gas lift, Bean/choke system and overall systems performance) 7. Production Options & Economic Implications Field Life Cash Flow Preparation This will entail use of Microsoft Excel Software D. Financing Energy Projects - Investment Appraisal Methods - Investment Risk Analysis - Securing External Findings Module 3 (1 Week) - Case Studies - Group Exercises - Guided Tour of UK Energy Institute

20 Diploma in Oil & Gas Business Management These complies three modules in six week duration. Module 1 2 Weeks Module 1 - this module is common to all the three diploma programs. 1. Overview of petroleum hydrocarbon resource Technical nature of oil & gas resource The chemistry Basic exploration, drilling & production 2. International Oil companies and petroleum production IOC s worldwide operations Strategic importance of petroleum reserves Overview of integrated worldwide petroleum operations IOC and developing exporting countries relationship and implications for global petroleum production The emergence of National Oil Companies as E&P operators The how-to on new business development strategies for the NOCs 3. Key issues in worldwide petroleum exploration & production Reserve estimates Geopolitics of oil & gas business Legal issues Technology Market / pricing Project cost & funding Materials & procurement 4. Petroleum Reserve Evaluation Why Petroleum Reserves Evaluation? Reservoir Assets Economic Evaluation 5. Exploration & Production Fiscal Terms

21 Joint Venture (JV) & Production Sharing Contracts (PSC) Hybrid PSC Service Contracts International Comparison of Contract Types The Memoranda of Understanding: a) What it is b) Comparison of oil and gas MOUs from different countries. 6. Petroleum Economics Exploration & Production Economic Analysis & Decision Criteria Developing PSC & JV Cash Flows Taxation & Tax Revenue Generation Strategies 7. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation and Cash Flow Analysis Decision Tree Analysis 8. Energy Projects Finance & Financial Management The financing options (alternative funding options local & offshore) Regional comparison of CAPEX & OPEX for negotiation purposes Customization of funding options as veritable tool for boosting local content objectives Economic Analysis of Project s Country of Origin World Bank and IMF Ratings Exchange, Interest and Inflation Rates as Key Factors Financing Growth through Buying another Company (or Producing Asset) Other Debt Financing Options & their Exigencies Successful Financial Management Skills (Beyond the figures) 9. Materials & Contract Management Technical & Commercial Issues in Contract Policy Formulation Bidding & Bid Evaluation Selection Criteria & Processes Legal Processes in Contract Management Legal Dispute Resolution in Relation to Contracts Engineering Contracts Management Peculiarities

22 10. Crude Oil Marketing Issues Crude Oil Supply and Demand OPEC and Non-OPEC Supply & Strategies Issues & Projections for the Future Pricing: Underlying Basis, Contango & Backwardation 11. Strategic Management of Oil & Gas Companies Strategic Analysis of a petroleum company Understanding strategic management Analysing & understanding the external and internal environments Focusing on core competencies & core business Value extraction along oil & gas supply chain 12. The corporate business plan Development Resource requirements & allocation Benchmarking for growth & Asset optimization Minimizing political risks in oil & gas business management Human resource development and succession planning at middle & top Management levels Econometric application in business forecasting Case Studies & Group Exercises * Module 1 is compulsory for all three diplomas. Module 1 has a 2 week duration. Module 2 3 Weeks Module 2 A. E&P Business Development and Management Program CEM05 1. International Oil companies and petroleum production IOC s worldwide operations Strategic importance of petroleum reserves Overview of integrated worldwide petroleum operations

23 IOC and developing exporting countries relationship and implications for global petroleum production The emergence of National Oil Companies as E&P operators The how-to on new business development strategies for the NOCs 2. Key issues in worldwide petroleum exploration & production Reserve estimates Geopolitics of oil & gas business Legal issues Technology Market / Pricing Project cost & funding Materials & Procurement 3. Petroleum Reserve Evaluation Why Petroleum Reserves Evaluation? Reservoir Assets Economic Evaluation 4. Exploration & Production Fiscal Terms Joint Venture (JV) & Production Sharing Contracts (PSC) Hybrid PSC Service Contracts International Comparison of Contract Types 5. Petroleum Economic Exploration & Production Economic Analysis & Decision Criteria Developing PSC & JV Cash Flows Taxation & Tax Revenue Generation Strategies 6. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation and Cash Flow Analysis Decision Tree Analysis 7. Energy Projects Finance & Financial Management The financing options (alternative funding options local & offshore) Regional comparison of CAPEX & OPEX for negotiation purposes Customization of funding options as veritable tool for boosting local content objectives Economic Analysis of Project s Country of Origin World Bank and IMF Ratings

24 Exchange, Interest and Inflation Rates as Key Factors Financing Growth through Buying another Company (or Producing Asset) Other Debt Financing Options & their Exigencies Successful Financial Management Skills (Beyond the figures) 8. Materials & Contract Management Technical & Commercial Issues in Contract Policy Formulation Bidding & Bid Evaluation Selection Criteria & Processes Legal Processes in Contract Management Legal Dispute Resolution in Relation to Contracts Engineering Contracts Management Peculiarities 9. Crude Oil Marketing Issues Crude Oil Supply and Demand OPEC and Non-OPEC Supply & Strategies Issues & Projections for the Future Pricing: Underlying Basis, Contango & Backwardation 10. Strategic Management of Oil & Gas Companies Strategic Analysis of a petroleum company Understanding strategic management Analysing & understanding the external and internal environments Focusing on core competencies & core business Value extraction along oil & gas supply chain 11. The Corporate Business Plan Development Resource requirements & allocation Benchmarking for growth & Asset optimization Minimizing political risks in oil & gas business management Human resource development and succession planning at middle & top management levels Econometric application in business forecasting B. Oil & Gas Project Management CEM09 1. Introduction to project management Project types in the E & P industry The Importance of communication

25 Appropriate communication process development for projects Objectives of Project Management Project Plans and Assumptions Project Execution Plan (PEP) 2. Project Economics (An Overview) Economic Appraisal of Projects Lenders Expectation during Project Execution 3. Project structuring And Scheduling Work breakdown structures (WBS) Procedure Networks, Critical Path Network & Gantt Charts Project Milestones Establishing Project Methodology 4. Project Resources & Procurement Management Resources Availability & Limitations Resources Procurement Planning & Cost/Benefit Analysis e.g. Make or Buy Decisions, Vendor Appraisal Project Management & Personnel Management 5. Project Risk Evaluation & Management Risk identification, evaluation and management plans Financial, Operational, (Pre-completion and Post-completion risks) Establishing Control Processes 6. Project Execution & Reporting Proactive management Monitoring & Reporting Actual Tasks and Progress Re-planning to achieve objectives Planned Vs Actual Performance Management Module 3 - Case Studies - Group Exercises - Guided Tour of UK Energy Institute

26 Diploma in Oil & Gas Supply Chain Management This program consists of three modules in six week duration. Module 1 2 Weeks Module 2 3 Weeks Module 3 1 Week Module 1 - this module is common to all the three diploma programs. 1. Overview of petroleum hydrocarbon resource Technical nature of oil & gas resource The chemistry Basic exploration, drilling & production 2. International Oil companies and petroleum production IOC s worldwide operations Strategic importance of petroleum reserves Overview of integrated worldwide petroleum operations IOC and developing exporting countries relationship and implications for global petroleum production The emergence of National Oil Companies as E&P operators The how-to on new business development strategies for the NOCs 3. Key issues in worldwide petroleum exploration & production Reserve estimates Geopolitics of oil & gas business Legal issues Technology Market / pricing Project cost & funding Materials & procurement 4. Petroleum Reserve Evaluation

27 Why Petroleum Reserves Evaluation? Reservoir Assets Economic Evaluation 5. Exploration & Production Fiscal Terms Joint Venture (JV) & Production Sharing Contracts (PSC) Hybrid PSC Service Contracts International Comparison of Contract Types The Memoranda of Understanding: a) What it is b) Comparison of oil and gas MOUs from different countries. 6. Petroleum Economics Exploration & Production Economic Analysis & Decision Criteria Developing PSC & JV Cash Flows Taxation & Tax Revenue Generation Strategies 7. Risk Analysis Valuation of Petroleum Reserves NPV of Reservoir Asset Taxation and Cash Flow Analysis Decision Tree Analysis 8. Energy Projects Finance & Financial Management The financing options (alternative funding options local & offshore) Regional comparison of CAPEX & OPEX for negotiation purposes Customization of funding options as veritable tool for boosting local content objectives Economic Analysis of Project s Country of Origin World Bank and IMF Ratings Exchange, Interest and Inflation Rates as Key Factors Financing Growth through Buying another Company (or Producing Asset) Other Debt Financing Options & their Exigencies Successful Financial Management Skills (Beyond the figures) 9. Materials & Contract Management Technical & Commercial Issues in Contract Policy Formulation

28 Bidding & Bid Evaluation Selection Criteria & Processes Legal Processes in Contract Management Legal Dispute Resolution in Relation to Contracts Engineering Contracts Management Peculiarities 10. Crude Oil Marketing Issues Crude Oil Supply and Demand OPEC and Non-OPEC Supply & Strategies Issues & Projections for the Future Pricing: Underlying Basis, Contango & Backwardation 11. Strategic Management of Oil & Gas Companies Strategic Analysis of a petroleum company Understanding strategic management Analysing & understanding the external and internal environments Focusing on core competencies & core business Value extraction along oil & gas supply chain 12. The corporate business plan Development Resource requirements & allocation Benchmarking for growth & Asset optimization Minimizing political risks in oil & gas business management Human resource development and succession planning at middle & top Management levels Econometric application in business forecasting Case Studies & Group Exercises * Module 1 is compulsory for all three diplomas. Module 1 has a 2 week duration. Module 2 A. Engineering & Materials Contract Management 1. Classification of Contracts in the Petroleum Industry 2. Stages in Typical Petroleum Industry Contract Administration & Contract Management Flow chart. 3. Contracts Approval Process

29 4. Preparation of Contract Terms & Conditions, Clauses, Scheduling etc. 5. Problems & Challenges of Successful Contract Management: Including Stock Optimization, Inventory Mgmt., E-Procurement: Manual vs. Electronic Bidding Integration of Contract Software with Accounting Packages, Contract Time Scheduling Engineering Projects, Contract & AFE Administration 6. Procurement Logistics Coordination in Engineering Project Contract 7. Success Factors for Contract Management: Internal Processes & Process Development for Bid Evaluation & Bid Analysis Methods Suppliers Selection Criteria Establishment of Benchmarks & Best Practice Compliance Monitoring Module 3 A. Procurement & Supply Chain Management B. Warehouse Management C. Developing & Managing E Commerce for Procurement D. Additional & Local Content Policy Critical ways to enhance sustainability International examples of successful National / local Content E. UK North Sea Supply Chain Fundamentals for Cost Reduction