Day 1
Overview of the upstream oil and gas sector focussing on exploration, development and production assets and the fundamentals of how these assets are traded
- The oil and gas life cycle.
- Government licensing and production sharing agreements.
- Exploration: finding hydrocarbons.
- Appraisal: defining the resource.
- Development: design, build and commissioning the infrastructure. Commercial agreements covering production, processing, transportation, allocation and sales.
- Production: getting the hydrocarbons to market.
- Re-development: oil and gas reservoirs have a life cycle, a producer will need to consider investments to maximise recovery and return on investment.
- Types of transactions.
- Understanding the private and public processes for oil and gas asset transactions: exploration farm outs, development farm-outs, corporate and asset deals, buying from administrators, Government transactions.
- Triggers for transactions – both buyer and seller.
- Why buy or sell assets? Discussion on trigger points including portfolio management, infrastructure and commercial synergies, corporate cash flow, technical expertise and risk and geopolitical considerations.
Case Study 1: Each team will review an asset sale/purchase opportunity defining core strategic drivers, commercial consequences and preliminary consideration of asset value.
- External influences on transactions.
- Asset partners: including negotiating and working with a Joint Operating Agreement (JOA).
- Governments: including consideration of exploration obligations, asset development timing, tax and overall political risk.
- Regulators: lobbying, industry bodies.
- Key valuation drivers.
- Describing asset value from both buyer and seller perspectives.
Group Exercise 1: Discuss key influences on assessing asset value including consideration of economic tools, capital, operating and abandonment cost estimates and discounting.
- The ‘Negotiation’ Exercise 1.
- Introduction to the exercise for negotiating a ‘Heads of Agreement’ between a team of buyers and a team of sellers. This exercise will run through all 3 days of the course.
Day 2
The divestment process - overview of divestment strategy and drivers. Defining and understanding the market environment, optimising the sale process and timing
- Preparing the asset for divestment.
- Asset or corporate sale?
- Shaping the offering for market including development of key ‘industry’ documents including the Executive Summary, Confidentiality Agreement and Information Memorandum.
- Preparing a clean data set for buyers to study. Use of online and physical data rooms.
- Engaging with the ‘right’ buyers and avoiding the ‘tyre kickers’.
- Develop a bidding strategy and value mandate with management.
- The Negotiation Exercise 2.
- Team work. Developing the initial position.
- First Negotiation, feedback and reaction.
- Creating and managing a competitive deal process.
- Soliciting offers, public versus private marketing, in-house marketing versus broker houses.
- Analysing bids, short-listing, consideration of any conditions precedent, buyer risk, completion timing....
- Negotiating and signing the SPA.
- Handling 3rd parties; including partners, regulators and government.
- The Negotiation Exercise 3.
- Produce draft Heads of Agreement.
Day 3
The acquisition process: Description and analysis of the preparatory work required to ensure the ‘right’ assets are targeted for acquisition.
- Engaging with sellers.
- Internal approval and mandating. Source of funding. Consideration of swap deals.
- Advertising your strengths as a buyer including an assessment of likely competition.
- Confidentiality and information flows.
- Valuation processes.
- Initial quick look to prioritise appropriate asset opportunities.
- Stop or keep going?
- Detailed due diligence on all technical and commercial aspects of the asset.
- Understanding the risks.
- Making the offer
Group exercise on offer letter: Each team to develop an offer letter describing the key components of the offer including cash, conditions precedent, exclusivity, process and timing.
- Closing a deal.
- Negotiating the Sales and Purchase Agreement (SPA) including key commercial terms.
- Resolving 3rd party issues.
- Completion process.
- Lessons learned.
- The Negotiation Exercise 4.
- Final negotiations.
- Complete Heads of Agreement and present.
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.
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.
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.
21-23 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
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.
5-8 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.
25-29 Jun 2012 (London, UK)
Featuring 3–individually bookable modules:
- Upstream development & production
- Mid-stream pipelines & LNG projects
- Downstream oil refineries & petrochemical plants
- Including: 16 key industry case studies to improve your understanding
24-27 Sep 2012 (London, UK)
22-31 Oct 2012 (Hong Kong, Hong Kong)
20-23 Nov 2012 (Singapore, Singapore)
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.
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.
12-15 Nov 2012 (Singapore, Singapore)
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.
17-21 Sep 2012 (London, UK)
This 5-day course is designed to introduce both lawyers and nonlawyers alike to the theories and practice of international commercial and investment arbitration in the oil & gas industry.
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 complement of tools to use most effectively in developing and analysing the corporate performance measures for oil and gas companies.
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.
17-19 Oct 2012 (London, UK)
13-15 Feb 2013 (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)
11-14 Dec 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.
17-20 Dec 2012 (Dubai, United Arab Emirates)
This 4 day International Oil & Gas Contracts 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 UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts.
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.
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.
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”.