oil-gas-fundamentals

BAC

LEVEL: FOUNDATION

ACCREDITED

OIL & GAS

FUNDAMENTALS Fast track your understanding the entire oil and gas value chain. Grasp the key concepts and features of the industry and broaden your knowledge on the technical, commercial and operational fundamentals.

OVERVIEW:

BY ATTENDING THIS COURSE YOU WILL:

This is the only course in the market covering the oil and gas value chain. It offers oil and gas professionals a unique opportunity to broaden their understanding of the technical and commercial fundamentals of the oil and gas industry.

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Fast track your understanding of the oil and gas value chain

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Boost your comprehension of the legal and commercial structures supporting upstream and downstream

This course will look at the industry basic concepts, such as geology, reservoirs, E&P, facilities, projects economics, legal and fiscal concepts, and also the refining, petrochemicals, distribution and the companies’ future challenges, providing the most complete A to Z understanding of the oil and gas industry.

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Acquire all the answers to your technical, commercial and operational questions

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Understand global market forecasts, E&P trends and techniques

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Optimise your decision making process by learning economic and investment imperatives

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Master all the industry’s jargon

WHO SHOULD ATTEND:

“Best course I have taken so far.

It provided a lot of information” Mohammed Abdulaziz Al-Banai, Senior Cost/Planning Engineer, QATAR PETROLEUM

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Government officials

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Commercial managers

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Public & community relations executives

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Marketing & sales managers

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HR managers

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HSE personnel

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Tax & accounting personnel

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Legal managers

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Strategists & planners

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Bankers & insurance personnel

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Investors

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New executives to the industry

WHAT IS OIL & GAS & HOW DO WE FIND IT? GENERAL INDUSTRY OVERVIEW & BASIC CONCEPTS ■ ■ ■ ■ ■ ■

Meaning of petroleum Typical oil & gas company objectives Typical oil & gas company activities Industry streams Typical organisation chart Company structures

HISTORICAL PERSPECTIVE ■ ■ ■ ■ ■ ■

The early discoveries The Seven Sisters Organisation of Petroleum Exporting Countries (OPEC) OPEC’s mission & members World’s oil & gas reserves & production Petroleum utilisation

OIL & GAS GEOLOGY ■ ■ ■ ■ ■

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Origin & formation of petroleum Migration of oil & gas Requirements for hydrocarbon accumulation Hydrocarbon bearing formations, nomenclature & depths Hydrocarbon traps • Structural trap • Stratigraphic trap Hydrocarbon bearing formations, nomenclature & depths Types of hydrocarbons Classification of crude oil Classification of natural gas Typical natural gas composition Properties of gases The energy value chain

OIL & GAS PROSPECTING (EXPLORATION) ■ Geological prospecting ■ Geophysical prospecting • Seismic (2D & 3D) acquisition • Seismic processing • Seismic interpretation ■ Offshore & onshore seismic data acquisition ■ The seismic section ■ Stratigraphical cross sections ■ Reservoir mapping

“I learned a lot of details which I did not know before. I look forward to using the things I've learnt in project economics, especially at work” Antonio Henrique Abreu, Planning and Control Analyst, SONANGOL STARFISH

Training for the competitive edge

OIL & GAS

FUNDAMENTALS DRILLING OPERATIONS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Exploration, delineation, appraisal & development drilling Drilling contracts Type & orientation of wells Routine drilling operations Components of rotary rig Rig’s circulating system Functions of drilling mud Classification & functions of casing Functions of cement Offshore drilling Special drilling procedures & drilling costs Technological advances

FORMATION EVALUATION & WELL COMPLETIONS ■ ■ ■ ■ ■ ■ ■

Evaluating a well Coring Open hole & cased hole logging Well testing Well completions Perforating a well Reservoir stimulation

OIL & GAS RESERVES ■ Oil & gas resources assessment ■ Reserves estimating methods & classification • Volumetric calculations • Decline curve analysis ■ Economic limit & long run marginal cost ■ Reserves replacement ratio ■ Reservoir management ■ Primary, secondary & tertiary oil recovery

CRUDE OIL REFINERY PRODUCTS & PROCESSES ■ ■ ■ ■ ■ ■

Refinery configuration Crude oil refining process Refinery yields by crude type Refinery margins Factors affecting refinery margins Refinery margin calculations

CRUDE OIL PRICE VOLATILITY ■ ■ ■ ■

The history of oil price Causes of oil price volatility The future of oil price Understanding of oil price determination

RESERVOIR DEPLETION MECHANISMS ■ ■ ■ ■

Solution gas-drive reservoirs Gas-cap drive reservoirs Water-drive reservoirs Combination drive reservoirs

OIL & GAS PRODUCTION FACILITIES ■ ■ ■ ■ ■ ■ ■

Typical oil production facilities Artificial lift systems Crude treatment & processing Natural gas processing Typical LNG value chain Gas added value products Offshore facilities

STORAGE & TRANSPORTATION ■ ■ ■ ■

Oil storage Natural gas storage Transporting petroleum fluids Pipeline tariffs

MAINTENANCE OF OIL & GAS FACILITIES ■ Well servicing & workovers ■ Corrosion & how to avoid it ■ Challenges - gas flaring

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OIL PRICE RISK MANAGEMENT ■ What is oil risk management?

■ Crude oil trade mechanisms • Physical/cash market • Forward trading • Futures trading • Options trading ■ Swaps contracts ■ Hedging ■ Market place & market participants

PETROLEUM TRADE & TRANSPORTATION ■ Regional importers & exporters ■ Global patterns of oil trade • Oil trade - highest volume & highest value • Distance - nearest market first • Quality, industry structure & governments • Crude versus products

NOCs, INOCs & IOCs ■ ■ ■ ■ ■ ■

The new Seven Sisters NOCs becoming INOCS NOCs’ main objective NOCs/IOCs priorities IOCs’ advantages & the future of IOCs Emergence of new model

LEGAL FRAMEWORK OF THE INDUSTRY ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

International agreements The parties to petroleum agreements The need for collaboration Contractual arrangements Contract documents Upstream project agreement Government take Fiscal systems - comparison of terms Flexible fiscal regimes Why dynamic terms?

Concessionary system’s cash-flow Production sharing system’s cash-flow

PROJECT ECONOMICS ■ Data required for economics ■ Cash-flow projections ■ Typical decision yardsticks • Accounting methods • Discounted cash-flow methods ■ Characteristics of ideal yardsticks ■ Sample before-tax cash-flow • Discounted payback period • Net present value • Internal rate of return (IRR) • Profitability index & present value ratio • Unit technical cost (UTS) or long-run marginal cost

LONG RUN MARGINAL COST ■ ■ ■ ■ ■

Investment types Types of investment decisions Investment decision-making Uncertainties in oil & gas investments Accounting for uncertainties

Training for the competitive edge

EDUCATION B. Science: London School of Economics M. Science: Imperial College Diploma: Imperial College COURSES Gas Monetisation in Nigeria PORTFOLIO AREA Gas & LNG

MARTIN HUTCHISON Martin Hutchison began his career with Phillips Petroleum Company in London and worked in the UK and USA as a geophysicist, progressing through seismic modelling, data processing, interpretation and Research & Development.

Following assignments to management positions in the UK in Economics and Capital Budgeting, ICT, Mergers & Acquisitions, Hutchison was once again posted to the USA to lead Corporate Risk Management and subsequently Mergers & Acquisitions groups, before being appointed as President and General Manager for company operations in Venezuela, where he was also elected as chairman of the International Oil Committee, a body representing upstream investors. While in Venezuela he served on the boards of the Venezuelan American Chamber of Commerce and Industry and Ameriven, a multi-billion dollar integrated heavy oil project.

From Venezuela Hutchison was appointed as President and General Manager for Phillips Petroleum Company’s interests in Core Venture 1, Riyadh, Saudi Arabia. Hutchison has recently served as the Managing Director and on the board for Brass LNG Ltd, Nigeria on secondment from ConocoPhillips.

Martin Hutchison is currently working as an independent consultant supplying strategic support to the global energy industry. Martin Hutchison also leads CWC School for Energy’s successful course Gas Monetisation in Nigeria, which is run twice a year in Nigeria.

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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

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