An 8-day intensive and practical programme covering everything you need to know in oil and gas lending best practices, featuring 3–individually bookable modules:
- Upstream development & production
- Mid-stream pipelines & LNG projects
- Downstream oil refineries & petrochemical plants
Including: 17 key industry case studies to improve your understanding.
By attending this highly interactive and practical 8-day energy training school you will:
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Gain a better understanding of oil and gas markets and how oil and gas projects are financed.
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Gain a better understanding of the current trends in energy project finance.
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Review the technical evaluations of upstream and downstream projects.
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Understand how the technical issues of energy projects are translated into financial and credit risks.
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Understand the finer aspects of financial modelling by identifying and quantifying the major risks that impact a project's cash flow generation capabilities.
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Gain a better understanding of credit structuring techniques, so as to effectively mitigate the credit risks of an energy project.
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Review the finer aspects of legal documentation, with legal documentation techniques and tips to help you properly reflect a credit structure in the legal contract.
2011 Energy school course background & methodology
The course will enable participants with skills to identify and analyse prospective borrowers, structure credit facilities, and prepare credit applications for formal presentation and approval by bank credit committees. These skills can be used by the origination teams and credit teams of lenders and to support organisations which run or sponsor projects.
Each section will be covered briefly as a module in a traditional class style, and the real learning experience will be found in the exercises within each module. Suggested solutions to each exercise will be provided and discussed. Supporting materials will be available for further in-depth learning.
Who will benefit from attending the 2011 Energy school
This course is designed for a multidisciplined audience suited to those involved in financing oil and gas projects and will be highly valuable to:
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Investment Banking Directors, Associates and Analysts in the Energy industry
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Finance Directors and Managers of Energy Companies
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Accountants of Energy Companies
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Business Development Directors and Managers of Energy Companies
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Equity Analysts
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Credit Analysts
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Corporate Planners, and Strategists of Energy Firms (such as oil refineries, LNG producers and shippers, oil and gas pipeline companies and oil and gas production companies)
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Financial Managers and Executives of Energy Companies
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Government civil servants, policy makers and bureaucrats for energy projects
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Institutional Investors
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Private Equity Investors
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Lawyers and financial due diligence staff for Energy Project Financings
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Institutional Investors in Energy projects, such as Pension Funds, Hedge Funds and Investment Funds
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Credit Directors, Managers and Analysts, Business Origination Directors, Managers and Analysts of Energy and Project Finance Banks
Module 1: Upstream Development & Production
Day 1
Overview of the oil and gas sector; the lending markets; recent developments in lending; overview of the credit process
Overview of the oil and gas sector
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Brief history of the modern petroleum industry
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Oil: 20th century superpower
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World oil and gas reserves and consumption
The bank lending markets
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Understanding the origins of the established oil & gas lenders and opportunities for new lenders
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Common types of lending: reserve based lending, mezzanine debt, bonds
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Credit risk vs. equity risk
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Recent developments in lending
Case study 1: Each team will review an upstream oil and gas company, identify its financing needs and propose an appropriate financing solution.
Overview of the credit process
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Initial deal review
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Proposal
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Due diligence
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Credit approval
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Term sheet
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Legal documentation
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Deal closing
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Deal monitoring
Case study 2: Each team will prepare an initial deal review of an independent oil & gas company. Findings and recommendations will be presented to the mock credit committee.
Day 2
Technical review; qualitative analysis; identifying and mitigating credit risks
Technical review
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What can the financial analyst do before calling a technical engineer?
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Reviewing the reserve report
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Assessing the development plan
Case study 3: Each team will review the technical report for an oil field development, identify technical risks and propose credit risk mitigation strategies.
Company specific
Identifying and mitigating risks
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Development risk, including government approvals
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Reserve risk
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Commodity price risk
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Environmental risk
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Insurance risk
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Lender’s ability to perfect security over borrowing base assets
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Corporate structure of borrower
Case study 4: Each team will undertake a credit analysis and prepare a credit application for an oil and gas company, which will be presented to the mock credit committee.
Day 3
Modelling in excel; credit structuring including covenants and pricing; legally documenting the transaction
Modelling in Excel
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Creating an upstream oil & gas projection model
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Earnings vs. cash flow
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Debt amortisation schedule
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Assumptions
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Using derivative products to hedge price risk and enhance debt capacity
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Ratio analysis
Credit structuring
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Security over borrowing base assets and non-borrowing base assets
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Covenants, including cover ratios
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Lending to an operating company vs. SPV
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Country risk credit considerations
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Assessing the legal environment and political risks, plus risk mitigation strategies
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Syndication strategies in the current credit climate
Case study 5: Selecting a country/region: mitigating country risk and lender’s ability to perfect security over collateral; syndication considerations. Each team will present a credit analysis that will address country risk/political risk and outline a syndication strategy.
Legally documenting the transaction
Case study 6: Each team will review excerpts of a draft credit agreement and identity any credit documentation issues and propose risk mitigation strategies.
Day 4
High leverage situations; mezzanine debt product; overview of oil & gas finance: downstream project financing
High leverage situations
Mezzanine debt product
Case study 7: Each team will review the economics of an oil development project and determine the debt capacity. An appropriate finance package will be recommended by each team.
Overview of oil & gas finance: downstream project finance
Summary and close
Module 2: Mid-stream Pipelines & LNG projects
Day 5
Overview of global midstream energy markets; overview of the global LNG market and its impact on regional gas markets; Technical Review for a mid-stream project; LNG project: financial modelling in Excel
Overview of global midstream energy markets
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Overview of the business development and credit process - why does country risk matter?
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Global and regional oil and gas production
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Geo-political influence on midstream energy projects, how can this mitigate credit risk?
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Major global oil and gas production projects in development
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Locations of global refining capacity
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Transportation the “lynchpin” in the oil & gas value chain
Overview of the global LNG market
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World/Regional gas consumption
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World/Regional gas production
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Transportation of Gas - how LNG globalised a local commodity
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Growth in LNG investment and the collapse of gas prices – future concerns and opportunities
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Review of LNG projects in development and proposed projects
Credit analysis: LNG project finance
Case study 8: Credit structuring. Each team will analyse a transaction and develop an appropriate credit structure to mitigate credit risks. Expert feedback will be received.
Technical review for a midstream project
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Why is the technical analysis so important in assessing mid-stream oil and gas projects?
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Reviewing the reserve report of the oil or gas fields that will supply the pipeline or LNG project
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Identifying credit risks and mitigation strategies
Case study 9: Qatar Gas II – Whose risk is it anyway? Each team to undertake a credit analysis of the Qatar Gas II project, with expert feedback provided on candidate responses.
LNG project finance: financial modelling in Excel
Case study 10: Each team will develop a financial model for a LNG financing and assess the strengths and weaknesses of the project. Each team will present their findings and propose whether to proceed or decline the transaction. Expert feedback will be provided.
Summary and Close
Module 3: Downstream Oil Refineries & Petrochemical Plants
Day 6
Overview of the downstream sector; the bank lending markets, including project finance and working capital facilities; Overview of a downstream oil and gas project financing, including a review of recent trends.
Overview of the downstream sector
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Oil and gas demand fundamentals: who buys the oil and gas?
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Review of regional demand for oil and gas
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Global concentrations of oil refineries and petrochemical production
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The economic cycle and the boom, bust nature of the downstream sector; the trend is the lender’s friend
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Overview of the working capital and capital expenditure requirements of a refinery and a petrochemical producer: how is debt used to manage cash flow?
Case study 11: Team exercise in identifying the working capital and capital expenditure financing needs of a petrochemical producer. Expert feed back provided.
The bank lending markets
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Project finance vs. balance sheet lending
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Working capital facilities and asset based lending
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Credit risk vs. equity risk
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Recent developments in lending
Country risk credit considerations
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Assessing the legal environment and political risks, plus risk mitigation strategies
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Syndication strategies in the current credit climate
Case study 12: Selecting a country/region: mitigating country risk and lender’s ability to perfect security over collateral; syndication considerations. Each team will present a credit analysis that will address country risk/political risk and outline a syndication strategy. Expert feedback provided.
Overview of a downstream oil and gas project financing
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Typical project finance structures
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When is a project finance structure the preferred choice?
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Understanding the objectives of parties involved in the project financing:
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Sponsor / Borrower
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EPC contractors
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Government agencies
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Lender
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Institutional investors
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Review of recent down-stream oil and gas project financings
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Credit risk mitigation strategies in project financing
Day 7
Overview of the credit process; technical reviews: identifying credit risks and risk mitigation strategies; credit analysis, including qualitative factors; financial modelling, including developing assumptions and stress testing.
Overview of the credit process
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Initial deal review
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Drafting a proposal
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Due diligence
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Credit application
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Credit approval
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Term Sheet
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Legal documentation
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Deal closing
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Deal monitoring
Case study 13: Each team to undertake a credit analysis and prepare a credit application for a working capital facility for a petrochemical producer, which will be presented to the simulated credit committee. Expert feedback will be received.
Technical reviews: identifying credit risks and mitigation strategies; credit analysis
Credit analysis
Case study 14: Each team will review the technical report for a refinery expansion and identify technical risks and propose credit risk mitigation strategies. Expert feedback will be provided.
Financial modelling; assumptions, including stress testing assumptions
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Creating a financial model for a working capital financing
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Earnings vs. cash flow
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Debt amortisation schedule
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Assumptions, including stress testing assumptions
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Ratio analysis
Case study 15: Each team will develop a financial model for a working capital financing and assess the strengths and weaknesses of the project. Each team will present finding and propose whether to proceed or decline the transaction. Expert feedback will be provided.
Day 8
Legally documenting the credit facility; the finer aspects of legal documentation and ensuring the bank approved term sheet is reflected in the legal contract
Legally documenting the credit facility
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Overview of a legal contract
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Legal jurisdiction
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Perfecting senior security positions over assets; fixed and floating charges
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Subordination and inter-creditor agreements
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Project agreements
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Typical credit documentation issues and risk mitigation strategies.
Case study 16: Each team will review excerpts of a draft credit agreement and identity any credit documentation issues and propose risk mitigation strategies. Expert feedback will be provided.
The finer aspects of legally documenting the credit facility: ensuring the bank approved term sheet is reflected in the legal contract
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Covenants, including cover ratios
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Post-closing credit facility monitoring considerations
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Lending to an operating company vs. SPV
- Syndication considerations
Case study 17: Each team will review excerpts of a draft credit agreement and compare it with the bank approved facility term sheet. Any differences between the draft credit agreement and the term sheet will be identified and solutions proposed. Expert feedback will be provided.
Summary and Close
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John Aggelakos
John Aggelakos has over 20 years banking experience in the oil and gas sector. John has an Honours BA degree from University of Toronto. John qualified as a Chartered Accountant at KPMG in Canada and Ireland before moving into Banking, where he has held key positions at BMO Nesbitt Burns, GMAC Commercial Finance, West LB and Bank of Scotland.
John’s assignments have included providing finance or acting as financial advisor to: ExxonMobil in Nigeria, Essar Global, and Qatar Gas II and Qatar Gas IV LNG projects. John now works as an independent consultant and advises banks and industry on energy issues.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
26-28 Nov 2012 (London, UK)
This Euromoney Energy Training course examines the roles of benchmarking and performance monitoring through key performance indicators and the analysis of business models.
25-27 Jun 2012 (London, UK)
17-19 Dec 2012 (London, UK)
This Petroleum Company Performance Management training course has been designed to offer personnel from corporations and financial institutions a full compliment of tools to use most effectively in developing and analysing the corporate performance measures for oil and gas companies.
23-25 Apr 2012 (Accra, Ghana)
This Introduction to the Oil and Gas Industry training course will provide you with an understanding of how the industry works from exploration to commercialisation and will introduce you to oil and gas operations and economics.
20-24 Aug 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. You will gain an appreciation of industry dynamics and the key issues affecting its development and future. This course will provide a thorough foundation for understanding the changing industry dynamics.
15-17 Feb 2012 (London, UK)
17-19 Oct 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. Under the guidance of our expert course faculty, participants will gain an appreciation of industry dynamics and the key issues affecting its development and future.
10-12 Jul 2012 (London, UK)
This 3-day Euromoney Energy Training course will give you an in-depth understanding of the problems and solutions in unit formation, negotiation of participation factors and operating agreements. The role of governmental agencies in consent and oversight will also be discussed.
12-15 Jun 2012 (London, UK)
This practical Euromoney Energy Training course will enable delegates from all technical and commercial disciplines to understand the theories and methods used to value oil and gas prospects. The four-days will reveal the fundamental aspects of upstream petroleum economics and risk analysis. Through computer-based exercises, participants will construct economic models, incorporating relevant cash flow data for case study projects and scenarios.
10-12 Oct 2012 (Singapore, Singapore)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
23-25 May 2012 (Rio de Janeiro, Brazil)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
25-28 Jun 2012 (London, UK)
The four day training course offers a unique opportunity to rapidly increase your understanding of the legal issues involved in various UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts. Delegates will also learn how to effectively negotiate in concert with counsel and how to get the terms negotiated incorporated into an enforceable international oil and gas agreement.
29-31 Oct 2012 (London, UK)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
11-13 Sep 2012 (London, UK)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
26-28 Mar 2012 (London, UK)
22-24 Oct 2012 (London, UK)
This 3 day Upstream Oil and Gas Acquisition and Divestment course will explain how upstream oil and gas assets are traded from both buyer and seller perspectives.
The course includes references to failed and successful deals and provides valuable insight into how to conclude successful transactions.
The principles of Licensing Rounds, Farm In and Farm Out processes are explored as well as key industry processes underpinning these transactions. It includes assessment of case studies, and an element of group work based on an “acquisition and divestment opportunity” where buyers and sellers meet to consider an opportunity and to “close a deal”.
17-19 Jul 2012 (London, UK)
Course topics include: Allocation of Risk under EPC; Contractor Selection; Impact on Project Structure; Implications for Project Financing; Determination of Damages; Special Circumstances for Refineries; Power
Generation; Gas Processing; Governing Law
12-15 Nov 2012 (Singapore, Singapore)
The Energy Risk Management: Mastering Volatile and Complex Markets course is a comprehensive and systematic introduction to risk management for complex energy markets. The course will detail why and how risks in energy – particularly gas and electricity - are more acute than in other traded market sectors, and how classic risk management techniques must be adapted and extended to meet these demanding conditions.
1-5 Oct 2012 (Singapore, Singapore)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills
16-19 Jul 2012 (London, UK)
People coming to energy risk management for the first time are taken aback by the extreme market conditions that are commonplace in the complex markets of oil, coal, and above all, gas and electricity. Levels of volatility and basis risk are unprecedented: and there are additional risks that are unique to energy. This course shows delegates how to deploy traditional risk management tools in the challenging context of volatile energy markets, and to extend these techniques to master the unique risk characteristics of gas and electricity.
28-30 Mar 2012 (London, UK)
19-21 Sep 2012 (London, UK)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
27-29 Nov 2012 (Lagos, Nigeria)
Attend this practical and interactive three-day training course and enhance your knowledge in the following key areas: The fundamental economic principles underpinning production sharing contracts (PSC’s); The history and evolution of production sharing contracts (PSC’s); The PSC structure, content and flowchart; Cost recovery, profile share, bonuses, sliding scales; Royalty and Taxation; Ringfencing; Key economic issues in PSC negotiations and bidding, featuring: Nigeria PSC economic modelling workshop, The economic impact of the Petroleum Industry Bill (PIB) and Global case studies
12-16 Feb 2012 (Dubai, United Arab Emirates)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills.
21-23 May 2012 (Hong Kong, Hong Kong)
A 3-day intensive course exploring how upstream oil and gas assets are traded from both buyer and seller perspectives. The course will include references to failed and successful deals and provide valuable insight into how to conclude successful transactions.
11-14 Jun 2012 (London, UK)
For operator drilling contractor and service company personnel that desire a specialised familiarisation, understanding and comprehension of Deepwater Drilling Operations, equipment, processes, systems and activities.
25-29 Jun 2012 (London, UK)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills.
16-19 Jul 2012 (London, UK)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
20-23 May 2012 (Dubai, United Arab Emirates)
This 4-day training course will enhance your understanding of the legal issues involved in production sharing contracts and to improve your negotiation techniques.
18-20 Apr 2012 (Baku, Azerbaijan)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) and the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
24-26 Apr 2012 (London, UK)
This brand new course has been introduced in response to industry demand for training in fiscal systems with an emphasis on how to model the complex algorithms in Excel™. It covers in detail the main elements of tax and Royalty fiscal systems (including sliding scales, r-factors, depreciation, capital allowances etc). The course has a global outlook where numerous worldwide examples will be drawn on and fiscal take comparisons made. This course brings the theory to life, allowing delegates to build and interpret their own tax and Royalty fiscal model based on a real life example.
12-15 Nov 2012 (Hong Kong, Hong Kong)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
20-22 Aug 2012 (Hong Kong, Hong Kong)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
8-10 Oct 2012 (Singapore, Singapore)
This Euromoney Energy Training course examines the roles of benchmarking and performance monitoring through key performance indicators and the analysis of business models.
23-26 Apr 2012 (New York, United States)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
25-29 Jun 2012 (London, UK)
Energy Finance School: Upstream, Midstream & Downstream Oil, Gas & LNG Projects - London
20-22 Aug 2012 (London, UK)
22-31 Oct 2012 (Hong Kong, Hong Kong)
17-20 Sep 2012 (London, UK)
This four day training course is specifically designed for
professionals involved internationally in the oil and gas
industry, it offers a unique opportunity to rapidly
increase your understanding of the legal issues involved
in various international scenarios and to improve your
techniques and skills in drafting a variety of
international contracts.
12-14 Nov 2012 (Hong Kong, Hong Kong)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
14-16 Nov 2012 (Almaty, Kazakhstan)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) and the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
This course has now expired please email us to find out when the course will next be running.