The IFF School of Oil and Gas Business Administration

It is crucial that everyone working within the oil and gas industry keeps abreast of the changes taking place in order to succeed in this highly competitive environment.  This 5-day course will take you through all aspects of the industry from a commercial, economic and strategic perspective.  The trainer will provide material based on a true appreciation of how the industry really works. 

The unique residential nature of this programme will give you the chance to fully immerse yourself in the topic.  Attend this course to gain the edge over your competitors, bringing success to your organisation and better your career prospects.

Scroll down for agenda

Introduction

• Course objectives and overview
• Agenda and expectations

Petroleum Geology

• Basic geology
• "The Magic 5"
• Risk factors (risk versus uncertainty)
• STOOIP and reserves
• Monte Carlo simulation

Structural Characteristics of the Oil and Gas Industry

• Supply, demand and oil price
• Oil production, consumption and growth
• OPEC
• Competition
• The economics of non-renewable resource depletion

Instructor Led Case Study: " Oil price movements after the Iraq invasion of Kuwait"

Oil Supply Chain and Gas Supply Chain

• Oil: From exploration to the consumer
• Gas: From exploration to the consumer
• Differences between gas and oil

The Basics of Oil and Gas Exploration and Recovery

• Exploration
• Appraisal
• Development
• Drilling
• Production
• Decline and decommissioning
• The challenge of unconventional oil and gas

The Life Cycle of a Project

• Oil and gas industry road map

Oil and Gas Project Development Concepts

• Project control versus expenditure
• Project stages
• Concept selection

Peak Oil

Exercise: Peak Oil

Methods of State and Foreign Participation

• Examples from around the world
• The traditional role of NOCs and IOCs
• Factors that impact investment

BP in Angola

Case Study: "BP in Angola"

Government Fiscal Terms and Agreements with Investors

• Economic rent and how to collect it
• Optimum tax systems
• Government versus investor objectives
• Designing a licence or contract system
• The concession system
• Production sharing contracts
• Joint ventures with national oil companies
• Criteria for award of licences and contracts

The Changing Role of the NOCs, IOCs and Service Companies

• Control of global oil reserves
• NOCs from around the world and their differing strategies
• NOCs outside their home country
• Service companies
• IOCs in the current environment

The IOC Response

Case Study: "The IOC Response"

Geopolitics

Instructor Led Case Study: Venezuela and its nationalisation efforts.

Mexico and Pemex

Case Study: "Mexico and Pemex"

The E&P Company Business Model

• Field production curve – cash flow curves for projects
• Cash flow model for E&P companies
• The "Hopper" model
• Strategy – areas of focus
• The role of M&A
• Diversifying sources of income

Project Investment Appraisal Techniques

• Payback
• Cost of capital
• Net present value
• Internal rate of return
• Profitability Index
• The economic model

Decision Making Under Conditions of Risk and Uncertainty

Exercise: Typical decisions made by O&G executives

Exercise: Risks and uncertainties facing oil and gas investors and governments

Exercise: "Gamblers Ruin"

• Definitions of risk and uncertainty
• Evaluating and analysing risk and uncertainty tools:
  - Sensitivity Analysis
  - Expected Monetary Value
  - Decision Trees
   

Exercise: Decision Tree examples

• Simulation and probabilistic tools
• Managing risk and uncertainty
• The value of information and the value of flexibility

Midstream: Transportation Options

• Oil infrastructure ownership considerations
• Offshore development and transportation options
• Economic considerations
• Pipelines and shipping

Refining and Trading Interfaces

• Refining: processes, products and business model
• Refining competitiveness criteria
• Crude oil value and marketing
• Oil trading

Gas and Markets

• Introduction
• Gas production, consumption and growth
• Gas contracts
• Gas markets and pricing
• Gas price versus volume risk

Stranded Gas and Monetisation

• The challenge of stranded gas
• Technologies to transport gas long distances
• Bringing stranded gas to market
   

Liquefied Natural Gas

• The LNG supply chain
• LNG sales
• LNG export capacity and growth
   

Gas to Liquids and Other Monetisation Methods

• The GTL processes and technologies
• Gas to wire
• Compressed natural gas
• Gas to solids

Joint Ventures in the Oil and Gas Business

Exercise: Why are joint ventures used?

• How joint ventures are set up
• The various types of joint venture
• Legal aspects
• Effective joint ventures
• The national oil company as a partner
• Major issues
• Joint Operating Agreements
   

Safety, Environment and Decommissioning

• The economics of decommissioning
• The economics of environmental action: Global warming
• Safety in the oil and gas industry

The Nexus of Commercial Contracts in Oil and Gas Investments

• Oil and gas project contractual structure – from the investors' perspective
• Negotiating an oil and gas contract: Hierarchy of agreements
• Managing a negotiation – structure
   

Transportation and Processing Agreements

Exercise: Identify the major terms on a T&P term sheet.

Summary

Exercise: 9 key features of the oil and gas industry will be identified.

During this intensive five-day residential course you will: 

• Gain a comprehensive understanding of all aspects of the energy value chain
• Get to grips with the challenges that will have the greatest impact on your industry now and in the future
• Reinforce and strengthen your knowledge in the areas you know whilst also broadening your knowledge in other areas and industry issues you are less confident in
• Learn the latest developments in petroleum geology, supply chain, exploration and recovery, foreign participation, transportation, refining and trading
• Confidently master the relevant commercial factors key to the negotiation of oil and gas contracts
• Develop a comprehensive strategy for decision making, especially under conditions of risk and uncertainty