Financing Solutions for Oil, Gas & Mining Projects

Introduction:

Oil, Gas, and Mining Projects involve substantial capital investment, long lead times, and carry significant risk. Their success is often critical, not only to the companies involved but also to the Government. As a result, this course plays a vital role in improving the performance of those involved in managing and contributing to such projects.

This training course will provide delegates with the essential skills to evaluate financial decisions, recommend appropriate sources of finance, and to manage financial risks, including volatile oil prices, gas prices, and mineral price.

These skills will be developed through the analysis of Finance Case Studies relevant to your organization

Targeted Groups:

• Engineers
• Projects & Process Managers
• Technical Managers, Team Leaders & Line Managers
• Finance Managers & Professionals
• Professional at all levels involved in Projects

Course Objective:

At the end of this course the participants will be able to:

• Outline the specific nature and financial implications of Oil, Gas and Mining Projects
• Recommend methods of financing Oil, Gas and Mining Projects
• Calculate the costs of finance
• Undertake Financial Evaluation of Projects to determine their Financial & Economic Viability and sustainability
• Recommend ways to improve the financial position of the company

Targeted Competencies:

• The Oil, Gas and Mining sectors and the Financial Implications relevant to Projects in the sectors
• Best Practice in Investment Appraisal of Oil, Gas and Mining Projects
• The Analysis & Evaluation of Case Studies relevant to your role and organization
• The latest International methods of Financial Management, Analysis & Evaluation
• How to Manage Oil Prices, Gas Prices, and Mineral Prices

Course Content:
Unit 1: Oil, Gas, and Mining Projects:

• Oil, Gas & Mineral Resources and Reserves
• The Specific Nature of Oil, Gas and Mining Projects
• Financial Implication of Oil, Gas and Mining Projects
• Market Volatility: Oil, Gas & Mineral Prices
• Strategic Issues facing the sector
• Financing Natural Resource Projects and a Diverse Strategy

Unit 2: Financing the Project:

• The Major Sources of Long Term and Short Term Finance
• Equity & Debt Financing
• Recourse & Non-recourse Finance
• Project Finance
• Special Purpose Vehicle (SPV) & Parties to Project Finance Schemes
• Bonds; Guarantees and Letters of Credit

Unit 3: Oil, Gas, and Mining Project Appraisal & Analysis:

• Selecting Projects to meet Organisational Objectives
• Forecasting Oil, Gas & Mining Cashflows (Income & Costs)
• Identifying Risks from the Projected Cashflow
• Calculating the Cost of Finance – WACC, CAPM & Arbitrage Pricing
• Capital Investment Appraisal Techniques - Payback; ARR, NPV, IRR, etc.
• Financial Appraisal using Spreadsheet Skills

Unit 4: Project & Financial Risk Management:

• Identifying Risk: Technical, Logistical, Environmental, Economic and Financial
• Financial Risk Management & Derivatives
• Sensitivity Analysis & Monte Carlo Simulation Analysis
• Evaluating the Risks & Uncertainties – Their Probability & Impact
• Managing Oil Prices, Gas Prices, and Mineral Prices
• Derivative Markets

Unit 5: Financial Evaluation of Oil, Gas, and Mining Projects:

• Meeting Government & Organisational Objectives
• Evaluating Financial Performance
• Return on Equity ROE; Debt Service Coverage Ratios (DSCRs) and Value for Money (VfM)
• Economic NPV & Economic Value Added
• Cost-Benefit Analysis – Finance V Economic Value Added
• Meeting Future Needs