FUNDAMENTALS OF FINANCIAL ANALYSIS AND CAPITAL BUDGETING IN OIL & GAS

Course Description: 

In this immersive exploration, participants will be immersed in a comprehensive canvas of vital economic doctrines and financial paradigms essential for dissecting investment prospects. Spanning the gamut from venturing into new business realms to expanding existing enterprises, modernization, and intricate integration dynamics, this course unpacks the quintessence of economic valuation tools indispensable for navigating the enigmatic terrain of petroleum project optimization. Unveiling an array of financial analysis and capital budgeting methodologies, this journey facilitates astute evaluation of investment potentials, sanctioning strategic capital expenditure, and fostering continual innovation and expansion within ongoing operations. Embellished with real-world case vignettes, this odyssey encapsulates the intrinsic value bestowed upon corporations through financial analysis and capital budgeting, projected into an encompassing future prism.

Who Should Attend? 

This course is designed for petroleum engineers, business planner & analysts, senior/ executive managers, strategy specialists, market intelligence experts 

What You Will Gain: 

Understanding how reserves are classified and the process of exploring, appraising and producing 

Understanding basic financial and capital budgeting concepts in relation to the oil and gas industry 

Exploring how to identify opportunities for capital investment based on preliminary screening, alignment with organizational strategy and dependence on other projects. 

Demonstrating how to use net present value, internal rate of return, discounted payback period and profitability index for capital investment projects 

Understanding the process of allocating capital based on qualitative assessment factors, incorporating other qualitative factors (such as the priority of projects), monitoring and post-monitoring auditing 

What You Will Gain: 

1. Unraveling the Reserves: Gaining Profound Insight into Reserve Classification and the Genesis of Exploration, Appraisal, and Production Dynamics.

2. Navigating the Financial Facet: Embracing Foundational Notions of Finance and Capital Budgeting in the Ambit of the Oil and Gas Landscape.

3. Charting Capital Horizons: Synchronizing Preliminary Screening, Strategic Alignment, and Dependency Considerations to Cultivate Opportunistic Capital Investments.

4. Financial Compass: Equipping with Financial Toolset - Net Present Value, Internal Rate of Return, Discounted Payback Period, and Profitability Index - for Precision in Capital Investment Evaluation.

5. Dynamics of Capital Allocation: Delving into the Nuances of Qualitative Assessment, Harmonizing Project Prioritization, and Gaining Insights into Monitoring and Post-audit Scrutiny.

Course Outline:

1. Pioneering Pathways: Fundamentals of Exploration and Production Synchronized with Accounting Basics, Cost Accounting, and Financial Statement Analysis.

2. Thriving in Turbulence: Traverse the Vortex of Upstream Petroleum Economics, Risk Assessment, and Fiscal Analysis, amid a Spectrum of Regulatory Frameworks.

3. Financial Facades: Venturing into the Economics of a Corporation, Marrying Economic Valuation Tools - Simple Payback, Accounting Rate of Return, Net Present Value, Discounted Payback, and Profitability Index.

4. Dawn of Distinctions: Illuminate the Breach Between Cash Flow and Profit, Probing Net Cash Flow Analysis, Taxation Nexus, Inflation Incorporation, and Dual Cash Flow Realities.

5. Risk in the Rearview: Expose the Tenets of Cash Flow and Risk Analysis, Engaging the Chronicles of Discounting and Time Value of Money, as well as Valuation in Risk-Prone Contexts.

6. Calculus of Cost: Unpack Cost Analysis Mastery, Strengthening the Cadence of Financial Analysis, Audit Proficiency, and Prudent Management Expertise.

7. Investment Horizons: Navigate Capital Investment Crucibles, Wielding Capital Budgeting Rituals, Guiding the Realm of Capital Allocation, and Breathing Life into Operational Budgets.

8. Crystallizing Choices: Voyage through Decision Analysis Origins, Sculpting Decision Policies, Navigating Investment Evaluation Terrain, and Cultivating Capital Management Acumen.

9. Surreal Realities: Immerse within Real-world Canvas, Enriching Learning with Dynamic Field Case Analyses, Propelling Practical Wisdom into Strategic Acumen