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overview
Key Learning Objectives
- Review various decision making processes within the oil and gas business
- Examine various tools and methods of identifying, quantifying and managing the risks and uncertainties through the E&P lifecycle, in particular
- Prospect evaluation
- Portfolio management
- Resource assessment
- Production forecasting
- Cost estimating
- Project execution
- Assign appropriate risk mitigation strategies the directly lead to improved evaluation and management of exploration projects
About the Course
The current low oil price environment demands a focused approach based on high quality decision making in order for companies to maximise returns and achieve their performance targets.
Success requires recognition of uncertainty and practical strategies to minimise or mitigate risk to ensure delivery of projects within budget and to generate predictable, reliable cash flows.
Setting aside speculations about when and to what extent oil prices will recover, successful companies must run their businesses based on sustainable oil price assumptions, realistic cost estimates, operational predictability, efficient project delivery and optimised exploration portfolios. To deliver these outcomes company executives must understand the key sources of value generation with-in their asset base as well as the risks and vulnerability of their business. Success requires concentration on core competencies while taking appropriate measures to manage risks and uncertainties.
This course reviews the key concepts for risk based evaluation, valuation, planning and decision making. In addition participants will gain a hands-on understanding of markets and practical risk management instruments. This will help to select and using a variety of risk management techniques and tools with confidence.
Who Will Benefit
This course will benefit oil and gas upstream professionals and management engaged in operations, planning and decision making, assessing and managing projects and work programs, assessing new ventures opportunities and managing exploration portfolios such as:
Business development managers, drilling managers, exploration and production team leaders, exploration managers, operations managers, senior exploration managers, senior petroleum engineers, senior reservoir engineers, senior safety engineers, technical safety engineers. Planning managers and departmental heads will also benefit from this course.
Testimonials
“I enjoyed the interactive nature of the course. I feel I gained a better understanding of their main accounting principles for oil and gas. The instructor was very friendly, helpful and I found his method of training interesting and beneficial”
Financial Analyst, Santos
“The instructor was inspirational, warm and built rapport with participants immediately and throughout the course. I learnt how to structure my communication in a succinct, clear and influencing way”
Senior Brand Manager, McDonalds Australia
Terms & Conditions
To read the training course terms and conditions read more here
Course Outline
Introduction – Current Environment and Industry Trends
- Business Environment and Relevance
- Oil & Gas Markets and Commodities
- Industry Performance
- Industry Structure, Contractual Arrangements and Value Chains
- Technical, Social and Market Trends
Oil and Gas Project Management and Planning Fundamentals
- Life Cycle Analysis and Planning
- Discussion of Project Management Considerations Across Key Phases
- Exploration
- Appraisal and Development
- Production
- Abandonment
Key Project Valuation Measures
- Net Present Value Concept Discount Factor
- Cost of Capital – review effects of interest rate, cost of equity and debt / equity trends
- Net Present Value
- Internal Rate of Return
- Payback Period
- Profit/Investment Ratio
Petroleum Risk and Uncertainty Analysis
- Probability, statistics and key uncertainty concepts
- Risk and uncertainty management principles
- Appropriate use of probability distributions
- Monte Carlo simulation, Latin Hypercube
- Developing key probabilistic estimation skills
- Probabilistic reserves and resource estimation techniques
- Probabilistic cost estimation
- Estimating with uncertainty
- Expected value concepts and the effects of low oil price
- Risk assessment
- Financial Risk Analysis
- Incorporating risk management in decision making
Decision Analysis for Exploration and Production
- Fundamentals of decision analysis
- Problem Framing
- Value of information
- Real option valuation
- Application of Bayes’ theorem
- Prospect risking and evaluation – effects of oil price on prospect viability
- Portfolio management and optimization in a low oil price environment
Scenario modeling case studies - Project vulnerability analysis and mitigation techniques
- Sensitivity Analysis (focusing on effects of oil price downside)
- Tornado diagrams
- Break even analysis
- Distributions, Decision trees and simulation
Corporate Risks and Strategic Decision making
- Recognition corporate influences decision making
- Implications of E&P Corporate Risk Taking and Performance
- Corporate and Financial Risk Tolerance and Vulnerability
- Strategic planning and implementation
- Processes for recognizing a company’s strengths and weakness
- Strategies for taking advantage of strengths and mitigating weaknesses
- Importance of effective communication and management buy in
- Commonly used structured planning techniques
- SWOT and PEST analysis
- HSE, labor and stake holder considerations
- Modelling and structuring complex E&P decisions – exploration plays selection
- Applications of decisions and Risk analysis to the Petroleum sector
Price Risk Management
- Physical Oil & Gas Markets
- Price Risk – How to Evaluate It?
- Market structures and types of transactions to mitigate price risk
- Price Exposure, Definition of Hedging and Hedging principles
- Pricing and Sensitivities
Managing Political Risk & Corporate Governance Solutions
- Understanding, identifying and managing Political Risk
- Political risk mitigating tools (strengths and weaknesses)
- Internal policies & solutions
- Political Risk Insurance and Portfolio Diversification Strategies
Effective Implementation of Strategic Decision Making
- Consistent use of metrics and appropriate target setting
- Decision making processes, useful systems and tools
- Separation of operations from strategy
- Creation of Forums focused on decisions not discussion
- Prioritising high value items and dropping non-essential issues
- Ensuring only viable options are considered and implemented
On-site & in-house training
Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?
Talk to us about an on-site/in-house & customised solution.
contact
Still have a question?
Sushil Kunwar
Training Consultant
+61 (0)2 9080 4395
training@informa.com.au