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 employs modern methods in training and skills development, enhancing the efficiency of human resource development. We follow these practices:

• Theoretical Lectures: 
  • We deliver knowledge through advanced presentations such as PowerPoint and visual materials, including videos and short films.
• Scientific Assessment:
  • We evaluate trainees skills before and after the course to ensure their progress.
• Brainstorming and Interaction: 
  • We encourage active participation through brainstorming sessions and applying concepts through role play.
• Practical Cases:
  • We provide practical cases that align with the scientific content and the participants specific needs.
• Examinations: 
  • Tests are conducted at the end of the program to assess knowledge retention.
• Educational Materials:
  • We provide both printed and digital scientific and practical materials to participants.
• Attendance and Final Result Reports:
  • We prepare detailed attendance reports for participants and offer a comprehensive program evaluation.
• Professionals and Experts: 
  • The programs scientific content is prepared by the best professors and trainers in various fields.
• Professional Completion Certificate: 
  • Participants receive a professional completion certificate issued by the Scandinavian Academy for Training and Development in the Kingdom of Sweden, with the option for international authentication.
• Program Timings:
  • Training programs are held from 10:00 AM to 2:00 PM and include coffee break sessions during lectures.

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.