Advanced Budgeting for Oil and Gas Management Course

Course Overview:

This course is oriented towards improving budgeting and financial management skills in oil and gas professionals. The participants will be familiarized with the volatility of oil prices; threats in the operations and the strategic steps that have to be devised in order to compete effectively.

This includes the raising of funds for company operations, strategies for hedging risks, making capital budgeting decisions, and assessment of companies in the industry.

The participants will gain experience in the use of tools for strategic management, allocation of budgets, and cost management in situations of uncertainty. The course also covers hedging and financial risk management as well as IFRS from the viewpoint of oil and gas.

This training is suitable for planners, cost-bearers, and the budgetary control officer since it gives actual ways of enhancing and expanding a business in a way that reduces financial exposure.

Course Objectives:

At the end of the Advanced Budgeting for Oil and Gas management course,  delegates will be able to:

·       Understand the reasons for and impact of oil price volatility

·       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.

·       Evaluate the performance of leading Oil & Gas companies to identify areas of best practice.

·       Advise on methods to eliminate or reduce financial risks facing Oil & Gas companies.

·       Recommend strategic solutions to budget issues and cost control

·       Measure and control costs effectively in a competitive environment

·       Prepare, manage and control budgets in the Oil & Gas Industry

·       Use budgets to make effective decisions to ensure growth, maintain profitability and reduce risk

·       Recommend innovative hedging strategies used by leading international companies to control risk and manage budgets effectively

Who Should Attend?

The course is specifically tailored for those working or wishing to work in the Oil & Gas industry. It is particularly suited to:

• Those responsible for devising budgets, managing and controlling budgets
• Those responsible for making or acting on decisions based on budgets
• Professionals who require a more in-depth understanding of integrated planning and budgeting techniques
• Financial Planners and Cost Analysts
• Line heads with direct planning and budgeting responsibility

Course Outlines:

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
• Resources & Reserves
• Financial Issues
• Volatility: Demand, Energy prices, Exchange Rates, Interest Rates

Advanced Strategic Decisions

• Strategic Planning
• Analytical Tools to Aid Strategic Planning
• Balancing Upstream, Midstream & Downstream
• Growth Strategies: Exploration, Diversification, Vertical & Horizontal Integration
• Mergers & Acquisitions, Joint Ventures, Production Sharing Agreements & Strategic Alliances

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

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

Financial Analysis of Oil & Gas Companies

• Analyzing the Performance of International Oil & Gas Companies 
• Analyzing and Interpreting ‘Energy Specific’ Ratios
• International Financial Reporting Standards (IFRS) relevant for Oil & Gas Companies
• Determining the proper classification of oil and gas costs: Capitalize, Expense, Exploration costs, Development costs, Production costs
• Analyzing the impact of different accounting methods on financial statements

see more: Advanced Financial Statements Analysis Course