The National Oil Companies and Value Creation

Introduction

Value creation is the bedrock of business. It's what sets you apart from the competition, secures long-term customers, enhances profitability, and brings distinct meaning to your brand and your Company/Nation. Without it, your unique offering will be rendered just another service in the eyes of your target market. This training course is designed to give delegates a comprehensive picture of successful National Oil Companies excelling in the exploration, production of crude oil & gas, LNG, refined products, and employee satisfaction. This training course analyses and suggests value additions to the wide range of essential engineering practices of the petroleum industry spanning exploration, drilling, production, sales, marketing, refining, global oil supply, reserves, production & trade flows. With the overview of these essential upstream and midstream practices, the downstream industry operations dealing with crude oil and refined products trading and its associated risks and uncertainties can be fully understood. Since price volatility always exists, the Price Risk Management appropriate techniques are presented in detail. Sales, Marketing, Trading, and Risk Management are crucial and the most active parts of the value chain maximization and, therefore, critical for managers to stay on top of these activities. This highly interactive program is designed to encourage delegate participation to reinforce new knowledge and innovative skills and discussion of "real life" issues in their organizations.

Objectives

By the end of this training course, participants will learn to:

• Fully understand the business of upstream, midstream, and downstream oil & refined products
• Comprehend refining processes, compute refinery margins, manage refined products price risk
• Master the essential practices of sales, marketing, and trading of crude oil and refined products
• Learn to develop and negotiate general sales contracts, term contracts, and spot contracts
• Understand the International oil supply dynamics, geopolitics and effectively reduce the business risks

Training Methodology

This training course will utilize various proven adult learning techniques that ensure the highest understanding, comprehension, and retention of the information presented. The daily workshops will be highly interactive and participative. This training course combines PowerPoint presentation with interactive practical exercises, supported by videos, activities, and case studies. Active delegate participation will be encouraged to relate taught material and case studies with their own experiences from their respective.

Who Should Attend?

This training course on The National Oil Companies and Value Creation is essential in the low price and reducing demand environment to apply the innovative approaches to scale-up value additions, foster private sector investments in new technologies.

This course is suitable for a wide range of professionals but will greatly benefit the following: 

• Business Development managers
• Corporate Planning professionals
• Geoscience & Engineering professionals
• Refinery professionals
• Supply Planners & Scheduling professionals
• Government regulators
• Law professionals
• Tax & Finance advisors
• Auditing personnel  
• Compliance officers
• Equity analyst and Bankers
• Joint Venture officers
• Negotiators and Contracting professionals
• Trading professionals

Course Outline

Day 1: THE NATURE AND FORMATION OF FOSSIL FUELS AND OIL RESERVES 

• Petroleum & Natural Gas Composition, Classification and Properties
• Generation, Migration, and Accumulation of Petroleum
• Trapping Mechanisms and Seismic Surveys
• Exploratory Drilling & Testing the Well
• Casing Cementing and Completing the Well
• Estimation of Reserves
• Enhanced Oil Recovery
• Surface Treatment and Storage

Day 2: PRODUCTION, TRANSPORTATION, AND DISTRIBUTION 

• Development of Oil and Gas Fields
• Storage & Tank Farms
• Pipelines and Tankers
• Geopolitics and World Energy Markets
• OPEC and the Future Role of a Cartel
• Need for Collaboration between NOC's and IOC's
• Oil & Gas Contracts, Joint Ventures, and Fiscal Regimes

Day 3: INTRODUCTION TO PETROLEUM INDUSTRY ECONOMICS 

• World Petroleum Consumption, Supply, Prices, and Prospects for the Future
• The Refining Process & Complexity
• Refining Margins and Profitability
• Sales and Marketing of Petroleum Products
• Carbon Capture and Environmental Issues
• Introduction to Energy Finance and Economics 

Day 4: FINANCIAL AND ENERGY RISK MANAGEMENT 

• Discounted Cash Flow (DCF) and Time-value Considerations
• Inflation and Time Value of Money
• Apply the Present Value and Future Value Formulae (NPV)
• Internal Rate of Return (IRR)
• Hurdle Rates and minimum acceptable Rates of Return
• Introduction to Energy Risk Management
• Risks in Trading Energy Commodities
• Risk and Opportunity Analysis
• The Non-linearity and Complexity of Uncertainty

Day 5: THE EVOLUTION OF A VALUE CREATION CULTURE 

• Culture and Safety
• Leadership and Teamwork
• Active Listening and Nonverbal Communication
• Leadership, Communication, and Barriers to Communication
• Presentation Skills
• Thinking Creatively
• Coping with Criticism
• Best Alternative to a Negotiated Agreement
• Dealing with Aggressors and Conflict
• Course Summary and Roundup