Oil and Gas Projects are technologically complex, economically resource-intensive, environmentally intricate and politically sensitive. They are characterised with many risks at all levels – downstream, midstream and upstream. The three levels, while interdependent, require careful financial and economic analysis, coupled with risk identification, analysis and allocation to various stakeholders, often based on the comparative advantage of each stakeholder.
Heavy capital outlays during early stages in the exploration, production and processing are committed, without a clear picture of how future scenarios will unfold, or even how risk structures may shift. Two dilemmas result from this: One is how to improve economic analyses and engage in detailed economic valuation approaches that are likely to herald best future revenue streams from the oil and gas reserves; the other is what should be taken into account in determining contingent liabilities and how to factor in these into deal structuring when engaging private sector players in oil and gas projects.
HOW PARTICIPANTS WILL BENEFIT
At the end of the course, participants will be able to:
- Apply the basic principles and techniques in economic valuation to the oil and gas sector;
- Explain the rationale for government assuming contingent liabilities in oil and gas projects;
- Identify, analyse risks and attendant contingent liabilities in oil and gas
- Develop appropriate strategies to address contingent liabilities in oil and gas projects;
- Learn how to document and make provisions for contingent obligations.
WHO SHOULD ATTEND?
Senior and middle level government officers working as Project Managers in oil and gas projects, oil and gas economists, Accountants, Auditors, Finance Managers and advisors in the oil and gas sector. The course is also useful for engineers involved in the energy related projects and those working in public sector investment programmes and in the external resources. Departments in the ministry of finance will among with. Officers from revenue authorities dealing with oil and gas taxation will find the course useful.
- Economic valuation techniques
- Contingent obligations in oil and gas projects
- Planning and budgeting for contingent liabilities;
- Reporting of contingent obligations
- Risk identification, analysis and management
- Structuring key contingent liabilities to limit Government exposure;
- Procedures for managing contingent liabilities