Financial Management for Oil and Gas Companies and Petrochemical Industries

Course Objectives
The main objective of this training course is to empower professionals with an in-depth understanding in the following areas
• A comprehensive financial view of all aspects of crude oil and gas analysis
• The required knowledge and skills to train others in crude oil analysts and traders
• Complete clarity on various important aspects and concepts related to crude oil analysis, with a comprehensive understanding of financial implications
• The necessary confidence, experience and knowledge about crude oil project initialization and funding.
• The awareness and understanding to identify any challenges faced during the analysis of financial matters.
• The ability and potential to promote organizational growth and development by fostering better credibility and goodwill for the organization
• The required understanding and information of financial management is not specific to oil and gas but also contains basic knowledge of finance and accounting.
• Enhanced financial skills to identify appropriate data and draw valuable conclusions to help define better growth strategies
Course Outline
FINANCIAL SYSTEM AND CORPORATE GOVERNANCE
• A financial system with essential tools of finance
• Issues and agency problems in core finance
• Misaligned interests within oil and gas companies
• Financial disaster and risk management
• Governance structures
• Corporate governance
INTEREST RATES
• Interest rates and debt
• Factors of low-interest rates
• Different interest rate theories
• Operational problems for oil and gas companies
• Debt securities and their types
• Interest rates with outside influences
BUDGETING
• Capital budgeting and its types
• Sensitivity analysis
• Oil and gas projects viability
• Capital rationing specific to oil and gas
VALUATION AND ACQUISITION
• Financial assets valuation
• Valuation techniques used in oil and gas sector
• Complex issues in oil and gas projects
• Different methods of company valuation
• Acquisitions and mergers.
EXCHANGE RATE
• International finance and currency risk
• Effect of diverse geographical areas
• Contractors and subcontractors.
• Different currencies
• Currency exposure
• Fluctuations in exchange rates
PAYOUT AND DIVIDENDS
• Equity and commodity price risk
• Strategic planning related to oil and gas industry
• Pay-out and its policies
• Use of spare cash
• Best ways to return to shareholders and dividends
• Oil and gas industry Pay-out policy
FINANCING OIL AND GAS PROJECTS
• Capital structure
• Core finance
• Agency conflicts related to the oil and gas industry
• Financial distress management
• Finance of new oil and gas projects
DERIVATIVES AND RISK MANAGEMENT
• Derivatives
• Derivatives types and uses of derivatives
• Forwards and its working
• Futures /swaps and their uses.
• Black–Scholes option pricing formula
• Risk management tools and their uses

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 25th – 28th Feb, 2025
2ND BATCH: 26th – 29th Aug, 2025