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Oil & Gas Project Finance
Week 1
Design Research
4 videos, 1 reading
Video: The Interaction Design Specialization
20 m
Video: Introducing Elizabeth Gerber
40 m
Video: Who, What, Where, When and How People Work
35 m
Video: Michael Chapman of IDEO on Interviewing
20 m
Reading: Slides
30 m
Graded: Final Quiz: Design Research
5 Questions
Week 2
Ideation
2 videos
Video: The Interaction Design Specialization
20 m
Video: Introducing Elizabeth Gerber
40 m
Graded: Cumulative Quiz
4 Questions
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Oil & Gas Project Finance

  /  Finance and financial management  /  Oil & Gas Project Finance

Oil & Gas Project Finance

About this course

Introduction

The training commences with an industry overview and teaching/group work on qualitative and quantitative risk analysis. This is designed to ensure that all participants have a good working understanding of the:

  • Basic structure of the international petroleum industry
  • Qualitative risk “template” applied by lenders – what risks are “bankable”
  • Different risk/reward objectives of sponsors and lenders
  • Ratios and other tools used to determine loan values and balance equity and debt

Course benefits:

This intensive 3-day programme in Oil & Gas Finance offers delegates the opportunity to insight and practical skills in this dynamic industry. A synthesis of formal seminars and collaborative exercises will provide delegates with a solid understanding of qualitative and quantitative risk analysis in oil & gas as well as the following:

  • The mechanics of upstream oil and gas financing
  • Understanding the complexities of refinery finance
  • Oil and gas transmission and distribution lending
  • LNG project finance strategies
  • Petchem and gas-to-liquids financing

Who should attend?

  • Specialists within the oil and gas industry seeking a broader appreciation
  • New recruits into graduate training programmes seeking a good overview
  • Internal and external auditors of oil and gas companies and other consultants providing specialist services and advice to oil & gas industry participants
  • Staff of the regulatory and tax agencies within developing oil & gas regimes

Course outlines

Industry Overview/Qualitative & Quantitative Risk Analysis:

  • Structure of the international petroleum industry
  • Different risk/reward objectives of sponsors and lenders
  • Structural & pricing drivers in oil & gas lending
  • Quantitative risk analysis

Understanding Upstream Oil & Gas Financing:

  • Reservoirs & reserves – a technical grounding
  • Field development finance in the early days of the north sea
  • Growth of the independent sector
  • Emergence of the borrowing base as the tool of choice
  • European and North American borrowing bases
  • Structural features of the European borrowing base, especially
  • The “War Stories” in north sea single-field finance – examination of the deals that failed
  • Recent trends in north sea finance

Getting to Grips with Refinery Finance:

  • Refinery operations – from topping refineries to complex crackers
  • Greenfield or expansion financing?
  • Cash flow volatility – the key risk for lenders
  • Operational mitigation of volatility risk
  • Debt structuring to mitigate lender risk
  • Refinery market analysis for lenders
  • “Where has it gone wrong?” – a somewhat chequered history

Oil & Gas Transmission & Distribution Lending:

  • Trunk pipelines and distribution networks – very different animals
  • Oil and gas transmission pipelines – high fixed cost/multi-partner undertakings
  • Gas storage & distribution finance

Liquefied Natural Gas Finance:

  • The growth of the LNG debt market
  • LNG liquefaction finance
  • LNG regas finance
  • LNG ship finance
  • Recent trends

Other Downstream Finance – Petchem and Gas-to-Liquids:

  • The Petchem “flowchart” – from gas/naphtha-based feedstocks to end-products
  • The Middle-Eastern petrochemical wave – adding value to domestic gas resources
  • Gas-to-Liquids – financing clean diesel projects

Case study: a review of the Nigerian oil & gas industry, key players, challenges and prospects.