Duration

3 days / 24 academic hours / 24 CPD units / 21 PE credits

Economics of the Oil and Gas Industry Who should attend

Managers of oil and gas companies and divisions, who need general understanding of economic aspects

Economists of the oil and gas companies, who need deeper understanding of tax reforms in RF

Financial analysts of the oil and gas industry

Operating managers who need basic understanding of investment projects and business valuation

Sales specialists who need to acquire a comprehensive perspective on the economic aspects of a companys operations.

Objectives

To provide an understanding of the general economic concepts of the activities of an oil and gas industry

To prepare participants for specialized trainings on investment projects evaluation, risk assessment, financial accounting and budgeting in the oil and gas industry, which are carried out by EY Academy of Business.

Training methodology

Training participants are provided with specially designed training materials in Russian.

The theory is illustrated by practical examples on personal computers.

Training participants are provided with practical examples studied in electronic format that can be used in their practical work.

How to apply? Please complete registration form online

at our web site: ey.com/cis/academy

Training outline

Day 1

Introduction

Economic specifics of the oil and gas industry

Sources of oil and gas: Upstream activities

Refining, transportation and sales of hydrocarbons: Downstream activities

Natural gas production, transportation and processing

Evaluation of reserves and prediction of oil production

Assessing of reserve capacity according to international classifications

Stages of the investment cycle of oil field development

Prediction of volume of oil production

Price considerations for crude oil and natural gas

Exchange trade; standards brands of crude oil

OPEC decisions and influence of independent producers

Historical retrospective and forecast of oil and gas prices

Hedging of crude oil price changes with financial derivatives: forwards, futures and options

Day 2

Basics of taxation in the oil and gas industry

Legal forms of agreements and taxation in oil and gas industry: international practice and RF specifis

Tax on commercial minerals extraction (CME), export duty and excise fees as economic leverages to stimulate high quality fuels production and industry development

New approach to O&G industry taxation in RF

Sources of financing in the oil and gas industry

Equity and debt financing: recommendations for combined financing

Weighted average cost of capital (WACC)

Financial accounting, budgeting and financial analysis

Costs capitalization principle and DDA calculations in upstream

Basics of budgeting, Net-back Price (NBP) calculations and practical application

Financial ratios for O&G VICs (vertical integrated companies): examples of their calculation and analysis

Day 3

Investment projects in the oil and gas industry and their evaluation

Forecasting of net cash flows, accounting for inflation

Discounting forecasted net cash flows (NCF) recommendations for discount rate selection

Net present value (NPV) calculations

Other methods of investment projects evaluation

Business valuation of oil and gas companies

Discounted cash flow (DCF) method

Market multipliers method with the example of EV/EBITDA application

Case Study: developing a computers financial model of gas stations chain and evaluation of business.

Certificates

Certificates of the EY Academy of Business.

Place and time

Open trainings are conducted at EY Academy of Business from 9.30 till 16.30.

In-company training

Preliminary analysis of clients training needs, identification of aims and goals

Training adaptation industry

Flexible approach to training location and schedules

Report on the training results on request.

Recommended training scheme

Introduction to the Oil and Gas Industry

Oil and Gas Economics

Investment Project Evaluation in the Oil and Gas Industry

Risks in the Oil and Gas Industry: Evaluation and Management

Accounting in the Oil and Gas Industry (IFRS/US GAAP)

Planning and Budgeting in the Oil and Gas Industry