Course: Petroleum Financial Management

Course Outline

Overview of Oil and Gas Accounting:

• Successful Efforts and Full-Cost Accounting;
• DD&A and accounting for impairment of proved properties

An Introduction to Financial Management:

• What is a Firm?
• Legal Forms of Business
• The Corporation and Financial Markets
• Financial Management Axioms

How to use financial information:

• Financial Statements: An Overview
• Financial Statements in Oil and Gas Companies
• Financial Statements Analysis
• Using Ratios
• Financial and Operating Ratios of the Oil and Gas Industry;
• Benchmarking

How to Make a Short-term Financial Decision:

• Cash Conversion Cycle;
• Working Capital Management;
• Cash Management Programs and Techniques
• Credit Evaluation;
• Cash Budget

Forecasting and Budgeting:

• Percent of Sales Method
• Sustainable Rate of Growth
• Nature and Objectives of Budgeting
• Managing the Budgeting Process;

How to make Long-term Financial Decisions:

• Capital Structure and Financial Structure 
• Capital Structure and Sources of Funds
• The Right Mix of Debt and Equity;
• Capital Budgeting;

Risk and Valuation Concepts:

• Determining the WACC
• Finding an appropriate discount rate
• Valuing for uncertain events

Value Added:

• Market Value Added
• Economic Value Added

Financial Aspects of International Operations:

• Determining International Oil and Gas Prices,
• Parent and Subsidiary Perspectives in Project Evaluation and Risk Exposure with International Projects

The Scandinavian Academy for Training and Development adopts the latest scientific and professional methodologies in training and human resource development, aiming to enhance the efficiency of individuals and organizations. Training programs are delivered through a comprehensive approach that includes:

• Theoretical lectures supported by PowerPoint presentations and visual materials (videos and short films).
• Scientific evaluation of participants before and after the program to measure progress and knowledge acquisition.
• Brainstorming sessions and practical role-playing to simulate real-life scenarios.
• Case studies tailored to align with the training content and participants work nature.
• Assessment tests conducted at the end of the program to evaluate the achievement of training objectives.

Each participant receives the training material (both theoretical and practical) in printed form and saved on a CD or flash drive. Detailed reports, including attendance records, final results, and overall program evaluations, are also provided.

Training materials are prepared professionally by a team of experts and specialists in various fields. At the end of the program, participants are awarded a professional attendance certificate, signed and accredited by the Scandinavian Academy for Training and Development.

Program Timings:

• 9:00 AM to 2:00 PM in Arab cities.
• 10:00 AM to 3:00 PM in European and Asian cities.

The program includes:

• A daily buffet provided during the sessions to ensure participants comfort.

Course Description

An expanding global oil and gas economy has dramatically changed the role of financial decisions and the magnitude of their affect throughout the company. Decisions about personnel; drilling for reserves, production, acquiring or divesting assets; or forging strategic alliances are financial in nature.  The participant will learn how to use the concrete techniques that enable him to make truly informed decisions, in order to increase his company’s value.

Course Goal

To enhance the participant’s knowledge, abilities, and skills necessary to understand and use latest financial management and control techniques for the oil and gas industry

Course Objective

By the end of this workshop you will be able to:

• Read and understand oil and gas financial statements
• Identify financing alternatives available to oil and gas companies
• Make a long- and Short-term financial decision
• Determine the sustainable Rate of Growth
• Understand the processes of forecasting and budgeting 
• Understand risk and valuation concepts
• How to develop the company’s cost of capital
• Determine market value added and economic value added
• What are the various financial issues associated with international operation

Who Can Benefit

Controllers, senior finance managers, executives and Staff working in the finance and commercial departments.

The Scandinavian Academy for Training and Development is committed to hosting all training programs in dedicated and well-equipped hotel facilities specifically designed for conducting and delivering training sessions, unless explicitly stated otherwise on our website. Participants will be notified of the program venue within 7 to 21 days prior to the programs start date, based on the Academys assessment and the programs circumstances. The Scandinavian Academy for Training and Development emphasizes that it holds no responsibility for any force majeure events that may prevent the program from being held at the designated venue. Nevertheless, the Scandinavian Academy for Training and Development will make every effort to provide suitable alternatives and extend the necessary support to participants in the event of a venue change due to unforeseen circumstances.