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LEVEL: INTERMEDIATE

OIL & GAS FINANCE FOR

NON FINANCIAL MANAGERS

BAC

ACCREDITED

DATE: 22-24 April 2012 26-28 November 2012

LOCATION: Doha, Qatar London, UK

Become an active player in your organisation by enhancing your knowledge in corporate planning, budgeting, cost control and the key financial considerations involved in investment decision.

OVERVIEW: The course will empower and prepare you to be an active player in the areas of corporate planning, budgeting, contributing to investment decisions and controlling the costs of operational management. All managers are expected to make an active contribution to the value of their company. Many, whilst proficient in their respective areas of expertise, require the deeper understanding of finance necessary to bring their performance to the next level. As your career progresses you will be increasingly likely to be participating in board level assessment of opportunities and reviews of performance thus requiring the financial skills covered in this programme. The course has been designed to further strengthen your financial skills. It uses a lecture format with interaction, exercises and group work. You will analyse the published accounts of an oil and gas company, scrutinise financial performance and understand the process of making sound investment decisions.

THE MBA SERIES This course is part of the CWC School for Energy’s established and world renowned MBA series and will build on the strategic and management expertise of the school. The knowledge acquired will increase your individual and organisational performance in today’s competitive oil and gas environment.

www.cwcschool.com

BY ATTENDING THIS COURSE YOU WILL: • Strengthen your financial skills and comprehension of financial concepts • Understand key aspects of financial corporate budgeting • Assess market driven approaches to cost control • Develop a better financial and business understanding allowing you to make more financially sound decisions • Participate in exercises based on a leading oil company’s published annual accounts

YOU SHOULD ATTEND IF YOU ARE: • Working with your finance or accounts department • Looking to develop the capacity to analyse the business as a whole • Expected to contribute to investment decisions • Responsible for the control of the costs of operational management • Required to contribute to board level decisions with financial implications


THE BUSINESS FINANCE CYCLE APPLIED TO THE OIL & GAS INDUSTRY ■ ■ ■ ■

Equity debt & capital; leverage/gearing measurement Factors influencing the levels of leverage chosen The Weighted Average Cost of Capital (WACC) The Capital Asset Pricing Model (CAPM)

THE MAJOR ACCOUNTING STATEMENTS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

CAPEX or OPEX? The Balance Sheet - a summarising picture Depreciation, Depletion & Amortisation (DD&A) Impairment & decommissioning The Operating Statement (profit account) for a period of operation Costs of acquisition; exploration; development & production Revenue & cost recognition Successful efforts accounting or full cost? Creating financial reserves & provisions ‘Reserves’ in the context of the oil & gas industry Relating the major accounting statements together Management accounts & published accounts Financial reporting standards

THE VITAL DIMENSION OF CASH FLOW ■ Plotting the flow of cash in a company ■ Measuring free cash flow

CASE STUDY • Putting it all together in a working case exercise

"The performance was excellent, this has exposed me on how to grow and work with individuals no matter how difficult they are. It also helped me to access myself" Rose Wilfred Utibe, Asset Disposal Officer, NNPC-NAPIMS

Training for the competitive edge


OIL & GAS FINANCE FOR

NON FINANCIAL MANAGERS

FINANCIAL KEY PERFORMANCE INDICATORS

BUSINESS PLANS & BUDGETS

COMPREHENSIVE FINANCIAL ANALYSIS BASED ON A LEADING OIL COMPANY’S ACCOUNTS

CORPORATE PLANNING & BUDGETING

■ An intensive working analysis exercise analysing company accounts ■ Profitability; liquidity; financial structure; operational performance & investor’s returns ■ Analysing the cash flows ■ Checking corporate viability in cash terms ■ Approaches to testing for possible corporate failure

SPECIALIST RATIOS APPLIED TO OIL & GAS OPERATIONS ■ Reserve ratios; reserve cost & reserve value ratios A practical financial modeling exercise • Creating a financial model • Assessing the risks - scenario planning & sensitivity analysis

■ ■ ■ ■ ■ ■

Planning techniques & models for business planning The role of managers at all levels in the company Forming a business profit plan Defining the financial objectives Quantifying the funds required for the plan Checking the overall viability of the plan & assessing the risks ■ Relating financial risk to operational risk

BUDGETARY CONTROL ■ What goes wrong with budgeting & why? ■ Making it work for you & your company ■ Things you should never do & things you must always do with a budget

THE INVESTMENT DECISION CAPITAL INVESTMENT APPRAISAL ■ ■ ■ ■

“Excellent, a fantastic overview of all aspects of finance, related finance issues.” Martin Jakubowski, Director - Strategic & Business, PETRO CANADA

www.cwcschool.com

Its significance in the oil & gas industries Methods & techniques used for appraisal Bringing in capital rationing, risk appraisal & CAPM Dangers in the commonly used DCF appraisal techniques


CONTROLLING THE COSTS FOR OPERATIONAL MANAGEMENT MARKET DRIVEN APPROACH TO COST CONTROL COSTS INCURRENCE & COST RECORDING ■ ■ ■ ■

The two major costing approaches reviewed Absorption costing for cost control procedures Marginal costing for decision making The dangers of misuse

COST/VOLUME/PROFIT ANALYSIS ■ Contribution management ■ Recognising & calculating the volume implications of changes to the cost/revenue streams

Contribution Analysis Case Exercise

Training for the competitive edge


EDUCATION MSc in Financial Control: University of Lancaster COURSES Oil & Gas Mini Management Business and Administration Finance for Non-Financial Managers PORTFOLIO AREA Strategy & Finance

CHRIS DICKIN MSc Chris Dickin MSc is an independent cost reduction consultant and financial trainer, working for major companies throughout Europe, Africa, the Middle and Far East. In the Middle East he has delivered several training courses at Bu Hassa and Bab for ADNOC. He first trained as a Management accountant with the Rolls-Royce Limited aerospace division in the UK. During that time, he qualified academically as a professional Accountant and he gained a Master’s degree in Financial Control. Over the next fifteen-year period, he gained a wide experience of UK Industry and Commerce, holding positions as an Accountant through to Financial Director in the finance function of several major UK companies. In 1970 Chris joined the University of Derby as a Finance lecturer. A 23 year academic career saw him progress to become the Assistant Dean responsible for resources in the Derbyshire Business School overseeing Degree and Professional courses.

www.cwcschool.com


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FOR FURTHER INFORMATION Website: www.cwcschool.com Email: cwcschool@thecwcgroup.com Tel: +44 207 978 0007 Fax: +44 207 978 0099

Training for the competitive edge

Š CWC School for Energy 2012. All rights reserved. Regent House | Oyster Wharf | 16-18 Lombard Road | London | SW11 3RB, UK

www.cwcschool.com

oil-gas-finance-for-non-financial-managers  

DATE: 22-24 April 2012 26-28 November 2012 YOU SHOULD ATTEND IF YOU ARE: BY ATTENDING THIS COURSE YOU WILL: OVERVIEW: LEVEL: INTERMEDIATE •...

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