Finance and Accounting for the Oil and Gas Industry

Overview:

Introduction:

This training program offers a thorough understanding of financial principles and practices specific to the oil and gas sector. Through theoretical instruction and case studies, this program equips individuals with the knowledge and skills necessary to make informed financial decisions and drive business success in the oil and gas sector.

Program Objectives:

At the end of this program, participants will be able to:

• Identify & evaluate the challenges facing the Oil & Gas sector now & in the future.

• Use skills & techniques to assist with key strategic decisions facing their company.

• Recommend appropriate financing decisions & make capital investment decisions.

• Advice on methods to eliminate or reduce financial risks facing Oil & Gas companies.

• Manage new projects/initiatives effectively, meeting Strategic Aims & Objectives.

Targeted Audience:

• Key Personnel in the Oil and Gas Industry.

• Accountants & Finance Professionals responsible for financial accounting, treasury, budget preparation, and management reporting.

• Process and Non-technical professionals who require a more in-depth understanding of strategic issues facing the Oil & Gas sector now and in the future.

• Managers involved in making CAPEX decisions.

• Bankers and Professionals who work in Energy Lending.

Program Outlines:

Unit 1:

Strategic Issues Facing the Oil & Gas Sector:

• The Nature of the Oil & Gas sector.

• Current & Future Challenges within the Sector – A question of Supply & Demand.

• Volatility: Demand, Energy Prices, Exchange Rates, Interest Rates.

• Resources & Reserves and the need for Research & Development.

• Financial Issues Impacting on Strategic Development and Growth.

Unit 2:

Advanced Strategic Decisions:

• Strategic Planning and Decision Making in a Volatile Market.

• Analytical Tools to Aid Strategic Planning and Decision Making.

• Diversifying Income Streams.

• Balancing Upstream, Midstream & Downstream.

• Growth Strategies: Exploration, Diversification, Vertical & Horizontal Integration.

• Mergers & Acquisitions, Joint Ventures, Production Sharing Agreements & Strategic Alliances.

Unit 3:

Financing Strategies in the Oil & Gas Sector:

• Sources of Finance.

• The Optimum Capital Structure and the Cost of Capital.

• Capital Investment Appraisal: NPV, IRR, Modified IRR, Payback.

• Financial Forecasting and Analysis in Excel.

• Managing Uncertainty of Production, Prices, Capital Costs & Construction Delays.

• Modelling Energy Prices in Capital Budgeting.

Unit 4:

Financial Risk Management Strategies:

• Developing and Implementing a Risk Management Strategy.

• Risk Analysis of Oil and Gas Projects using Excel.

• Sensitivity Analysis, Sensitivity Charts & Scenario Analysis, Monte Carlo Simulation.

• Hedging Energy Prices - Interest Rates & Foreign Exchange Rates using Financial Derivatives.

• Accounting for Hedging Under IFRS.

Unit 5:

Project Management to Meet Strategic Aims & Objectives:

• Estimating Activity Duration & Costs using Statistical and Probability Estimates.

• Critical Path and Manpower Planning.

• Earned Value Analysis.

• Budgetary Control and Variance Analysis.

• Implementing & Managing Change, Suspension or Shut Downs.