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International Human Resources Development Corporation
Instructional Programs
Innovative programs with challenging simulation games that teach
the business essentials of todays oil and gas industry.
2015 Catalog
Attended by more than 7,200 oil and gas industry managers from
106 countries.
45YEARS
FOR
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About IHRDCIHRDC was founded in 1969 with a commitment to offer
international oil and gas companies excellent products and services
to train and develop their workforce. In the four decades since
then from both our Boston headquarters and our offices in Houston,
London, Amsterdam, Abu Dhabi, Kuala Lumpur, Jakarta, and Lagos we
have set a worldwide standard of excellence through our
Instructional Programs, e-Learning and Knowledge Solutions, and
Competency Management. Our offerings are being used daily by
thousands of industry leaders.
For more information go to www.ihrdc.com.
welcome to IHRDCs 2015 Instructional Programs Catalog
Our programs have a strong reputation because of our excellent
instructors, who have many years of industry experience, our
time-tested learning format an equal mix of lectures and team
participation in unique and challenging business simulation games
that enhance learning, and the evening events we organize for
participants whether in Boston or Cambridge. For a better
appreciation of our programs please listen to the testimonials of
our many past participants at
www.ihrdc.com/instructionalprograms.
We offer our Petroleum Industry Foundation Programs in the
spring (April through June) and fall (September through November)
in both boston andCambridge, u.K. The list of Boston Programs for
2015 begins on page 2 in this Catalog and those for Cambridge on
page 32. We encourage you to examine the content of the programs
and select one or more for enrollment in 2015.
Please note that included in the Boston Programs is a timely
two-week certificate program International LNg business Management
Certificate Program devoted to the business fundamentals of LNG and
the management of major international petroleum projects. Its
challenging simulation game involves the design and development of
a major LNG Project in East Africa. With the growing need for
natural gas in the worlds energy mix, this is an important offering
for you to consider.
IHRDC can also bring training directly to your organization by
contracting for one of our Oil and Gas Business Workshops. These
intensive, in-house programs guarantee a practical, private, and
effective learning experience for you and your colleagues. We
recommend you review these wide-ranging offerings, beginning on
page 24, and let us know how we can assist in fulfilling your
training needs.
I encourage you to look at each of the programs in this catalog,
choose the one that best meets your needs, and enroll as early as
possible. Enrollment can be accomplished online and, when
completed, we will help you with hotel accommodations, visa
letters, and other details. To enroll, simply go to
www.ihrdc.com/instructionalprograms/enroll. We look forward to
seeing you in 2015.
Sincerely,
David A.T. Donohue PhD, JDPresident and Program Director
Dear Colleague:
Keeping up to date with industry developments and expanding our
knowledge and skills on a regular basis are essential to a
successful career in the international oil and gas industry.
With this in mind, I invite you and your colleagues to attend
one of the outstanding, time-tested oil and gas industry management
programs that we will offer in boston, Cambridge, u.K., and
internationally in 2015. These programs, updated and expanded
regularly, will provide you with outstanding career development
opportunities and a chance to network and share your challenges
with peers from major oil companies, international independents,
national oil companies, service companies, and government agencies
from more than 40 countries.
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Table of ContentsThe unique IHRDC Experience 02 IHRDC Oil and
gas Management Programs:BOSTON
01: International Petroleum business Program 04 mAY 11 22,
2015
02: 22nd Annual International gas business Management
Certificate Program 06
mAY 11 22 OR OCTOBER 12 23, 2015
03: Financial Modeling and Petroleum Project Economics 08
jUNE 1 12 OR SEPTEmBER 14 25, 2015
04: Advanced Petroleum Management Program: Enterprise-wide
Leadership in Times of Change 10 jUNE 1 12, 2015
05: International LNg business Management Certificate Program 12
jUNE 15 26, 2015
06: Essential skills for Oil and gas Professionals 14 jUNE 15
26, 2015
07: 25th Annual International Petroleum Management Certificate
Program 16 SEPTEmBER 14 OCTOBER 9, 2015
08: HR Processes, Competency Development, and Change Management
Program 20
SEPTEmBER 28 OCTOBER 9, 2015
09: International Petroleum Law workshop 22 OCTOBER 19 23,
2015
IHRDC Oil and gas business workshops: 24BAL I , DAR ES SALAAm,
LONDON, NAIROB I
International gas business workshop 26mARCH 23 27 OR APR I L 13
17 OR NOVEmBER 16 20, 2015
Overview of the International Petroleum business 27APR I L 20
24, 2015
Optimizing gas Processing, Refining, and Petrochemical
Facilities 29APR I L 13 17, 2015
Petroleum Project Economics and Risk Analysis 29mARCH 16 20 OR
NOVEmBER 16 20, 2015
Instructor biographies 39
Enrollment Information/Forms 48
About IHRDC 51
Instructional Programs Client List 52
The superb IHRDC-Invincible Energy Experience 32
IHRDC-Invincible Energy Programs: CAmBR IDGE U.k., GENEVA, S
INGAPORE
10: Economics of the Oil supply Chain 34 APR I L 20 24 OR
OCTOBER 5 9, 2015
11: Trading Oil on International Markets 35 APR I L 27 mAY 1 OR
OCTOBER 12 16, 2015
12: Oil Operations and Logistics 36 mAY 20 22 OR SEPTEmBER 21
23, 2015
13: International Oil Trading and Price Risk Management 37 jUNE
1 3 OR OCTOBER 26 28, 2015
14: Price Risk Management in the Oil Industry 38 jUNE 8 12 OR
NOVEmBER 9 13, 2015
Copyright 2014 International Human Resources Development
Corporation. All rights reserved.
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02 03
The IHRDC Experience Combines Learning Excellence and Attention
to Your Needs
For 45 years, IHRDC has been a worldwide leader in training
and
competency development for the international oil and gas
industry. Our
Instructional Programs have gained a reputation for excellence
in the
industry for all of these years because of their unique design,
superior
instructors, and attention to participants needs throughout
their stay.
Engaging Instructional Format
Our unique and highly regarded instructional design combines
lectures by experienced oil and gas business specialists with
challenging proprietary IHRDC business games. Classroom sessions
include timely, comprehensive, practical, and challenging topic
matter. Our business workshops allow participants to internalize
learning through team discussion and decision-making that reflect
real-life business opportunities. Our programs feature instructors
and mentors who make it a priority to provide a first-rate learning
experience.
Exciting Historical and Cultural LocationIHRDCs Oil and Gas
Management Programs are offered annually in Boston, Massachusetts,
U.S.A. This friendly and attractive city boasts countless cultural
and historic attractions, world-renowned academic institutions,
exciting sporting venues, excellent restaurants and hotels, and a
wide variety of shopping opportunities. Plus, its known as the
walking city and has terrific public transportation theres no need
for a car!
Stimulating Social Events and Cultural ActivitiesWe want you to
feel at home during your stay in Boston. With this in mind, IHRDC
provides a Program Coordinator to assist you with your non-program
needs. The Program Coordinator will also organize social events
during the evenings and bus tours to regional sites of interest on
the weekends. IHRDC personnel will guide you on evening group tours
of select Boston and Cambridge museums, Harvard and MIT
universities, help you explore the Charles River and Boston Harbor
via boat rides, and facilitate weekend visits to mountains and
seaports in Maine, New Hampshire, and Rhode Island. Our planned
social events include group dinners at favorite local restaurants,
theater outings, concerts, sporting events, and special shopping
tours to regional outlet malls.
Invaluable Networking OpportunitiesBy attending both classroom
and social events with colleagues from all over the world, you will
have a wonderful chance to learn from and network with some of the
brightest professionals in the industry.
2014 Participant
The course was, without a doubt, one of the very best I have
ever attended. Superb instructors, quality teaching, comprehensive
course notes, excellent team interaction through section building
exercises, a superb extracurricular activity program in Boston, and
the environment to ensure that we all made the most of our time in
your wonderful city.
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INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND
This business game is an integral part of the learning process.
Participants, divided into teams, make real-life technical,
financial, and market decisions that commonly confront managers in
the international petroleum business today. Team performance is
measured on a financial basis and is catalyzed by healthy
competition.
The international petroleum business game takes place in
Sandland, a fictitious country on the west coast of Africa. Team
objectives include developing oil and gas reserves and deciding on
the optimal way to develop and market the production. During each
workshop session, teams are provided with technical and economic
background that serves as basis for decisions to be made during
that session. Team decisions are made and require a commitment of
both capital and operating funds and occur during the following
intervals: three years of exploration, two years of development,
and fifteen years of production.
WORKSHOP SESSIONS INCLUDE:
n Introduction to the workshop
n Negotiating the right to explore in Sandland
n The exploration survey stage
n Exploration and delineation drilling
n Reserves estimation and field development
n Gas processing
n Oil and gas pipelines and port facilities
n Sandland operations accounting
n Combined-cycle power plants
n Oil tanker charter decisions
n Refinery development decisions
n Financing the port expansion
n Ammonia plants
n Gas export pipeline decisions
n Crude oil marketing decisions
n Strategic planning and decision analysis
n Evaluation of performance and presentation of results
Ann
RefinerySite
Highway 1A
High
way 1
San
dland
River
AtlanticOcean
Ann
BradsCove
SandlandNational Forest
SandlandNational Forest
WHO SHOULD ATTENDThis program is intended for managers in the
many functional areas of the international petroleum and natural
gas industry, such as exploration, production, refinery and
petrochemical operations, marketing, law, human resources,
accounting, and finance.
INSTRUCTORSDavid A. T. Donohue, PhD, JDMeg Annesley, BSErhan
Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDBradford R.
Donohue, MBA, CFAMarshall E. Frank, MSJohn B. (Jack) King,
MBAShashi Kumar, PhDMichael Lynch, MSCarlos Peralta, MBAKris
Ramanadhan, PhDRobert W. Taylor, MSLaura Varela, MS Eng
Note: The content of this two-unit program is the same as the
first
two units of IHRDCs four-week International Petroleum
Management Certificate Program held during September
(featured on pages 16-17).
Overview of the Energy Industry Oil and gas measurements and
units; the value chains; market structures; worldwide oil and gas
economics; major players; evolution of the integrated oil and gas
business.
Host Government AgreementsTypical host country exploration
agreements: summary of the history and key provisions, including
bonus payments, royalties, taxes; production sharing; participation
arrangements.
Exploration MethodsThe exploration process: petroleum geology,
exploration geophysics, well logging, developing exploration
prospects, preparing and interpreting geological maps; case
studies.
Drilling and Well CompletionsPlanning the well; logistics;
drilling functions; drilling procedures; formation evaluation
methods; horizontal wells; improvements in drilling.
Field Development and Production CycleOnshore and offshore field
development and long-term production subsurface design; reservoir
fundamentals and reserves estimation: field development; inflow
performance; integrated reservoir management; and enhanced
recovery. Surface facilities design: design for both onshore and
offshore operations; production operations and management;
investment analysis and reporting of performance; case studies.
Gas Processing and Marketing of LPGsProperties of gas and gas
liquids; processing of associated gas; markets for LPGs; economics
of natural gas plants.
Crude Oil and Natural Gas Pipeline SystemsIntroduction to crude
oil and natural gas pipelines; design, construction and operation
of pipeline systems; estimating project costs; pipeline contracts
and tariffs; new pipeline developments.
Measuring Financial PerformanceHow companies report to their
shareholders; GAAP principles; income statement; balance sheet;
cash flow statement; equity statement; taxation and tax codes;
preparing corporate financials; the audit; reading a major company
annual report; measures of performance and the setting of company
goals.
Petroleum Industry Accounting and TaxationSuccessful efforts vs.
full-cost accounting; corporate taxation; petroleum taxation;
accounting for host government and joint venture agreements;
supplemental reserves reports included in annual reports.
Unconventional Oil and Gas ResourcesA comprehensive and
practical understanding of the processes that are applied in the
development of unconventional oil and gas projects, by looking at
some active investment areas.
Energy Project EconomicsEconomic yardsticks; project cash flow
before and after tax; tax expenses and benefits; net cash flow
stream and payout; time value of money; opportunity cost and
present value of net cash flow; discounted cash flow analysis and
internal rate of return; risk assessment and sensitivity analysis;
examples of the economic analysis of energy projects.
Worldwide Petroleum EconomicsWorldwide energy supply; demand;
reserves; pricing; corporate strategy; recent history and
prediction of future trends; how petroleum economists make
predictions.
Markets for Associated Natural GasThe natural gas chain:
industry structure and regional markets, interfuel competition; gas
distribution; regulation and deregulation; economics and markets
for gas, including combined-cycle power plants, LNG, ammonia,
methanol, and gas-to-liquids.
Refining and PetrochemicalsRefinery: capacity evolution;
technology changes; capital and operating costs; profitability;
net-back estimation and recent trends. Petrochemicals in
perspective: links to refining; key product families; industry
drivers: cost of production, supply and demand; profitability and
price forecasting; prospects for the future: maturity,
environmental concerns, global competition.
Crude Oil Tanker TransportationThe tanker industry and market
trends: an overview of the main characteristics of crude tankers;
capital and operating costs; pollution at sea and the new
regulations; calculating tanker transportation rates; Worldscale
and charter arrangements.
Marketing of Crude Oil and ProductsDevelopment of the free
market for oil; current international market structure; regional
markets: physicals, futures, forwards, derivatives, options; roles
of participants, price formation, price volatility; price
reporting; crude oil and product pricing; negotiating and pricing
petroleum sales contracts; introduction to hedging and price risk
management.
Products DistributionDistribution and retail marketing of
petroleum products; structure of the margins realized along the
distribution value chain; transitions in the marketing of
transportation fuels; economics of the modern gasoline station.
04 05
UNIT ONE MAY 11 15, 2015
UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM
ACCOUNTING
This program provides managers in the worldwide petroleum
industry with an in-depth understanding of the key aspects of the
upstream and downstream petroleum business. It explores the
important functional management issues today, including technical,
financial, marketing, and petroleum accounting. The instructional
format is a compelling combination of formal presentations by
industry experts and team participation in a challenging business
workshop.01
Excellent program. With what I have learned, I
now have a robust knowledge of my industry.2014 Participant
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: MAY 11 22, 2015
UNIT TWO MAY 18 22, 2015
DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS
International Petroleum Business Program
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PristineBeaches
Expetra
Atlantic Ocean
Africa
Europe
North America
South America
t
eere
PristineBeaches
Expetra
Atlantic Ocean
Africa
Europe
North America
South America
t
eere
International Gas Business Management Certificate ProgramThrough
a careful balance of lectures by leading experts and challenging
workshop sessions, this two-week program provides a comprehensive
working knowledge of the technology, economics, finance, and
markets that shape and affect the international gas industry today.
It also teaches the management skills needed to develop projects
and increase performance within an integrated gas business
environment.
ATLANTIC BASIN GAS BUSINESS GAME: EXPETRA
This business game is an integral part of the learning process.
Participants, divided into teams, make real-life technical,
financial, and market decisions that commonly confront managers in
the international gas business today. Team performance is measured
on a financial basis and is catalyzed by healthy competition.
The challenging Atlantic Basin business game takes place in
Expetra, a small island country in the Caribbean, north of
Trinidad. Gas and condensates are expected to be discovered in the
deep offshore. Teams enter into exploration agreements, explore for
and discover hydrocarbon resources, and then decide on the best way
to market them over a 15-year production period. Markets include
LNG exports to the U.S. and Europe, LPG and ethylene plants, gas
pipeline to Miami, gas distribution and storage operations in the
U.S., power plants in the U.S. and Expetra, and export-focused
ammonia, methanol, and gas-to-liquids plants in Expetra.
WORKSHOP SESSIONS INCLUDE:
n Introduction to the exploration opportunity
n Negotiation of the exploration and
development agreement
n Seismic exploration and mapping of seismic results
n Exploration drilling and reserves estimation
n Gas processing, LPG, and ethylene market decisions
n Gas field pipeline decisions
n Integrating load balancing and pipeline facilities
n Gas-fired power plant market decisions
n Acquiring a gas distribution business in the U.S.
n Assessment of methanol, ammonia, and GTL markets
n Export pipeline from Expetra to Miami
n Assessing two LNG market opportunities
n Integrated field development and market decisions
n Decisions during the project lifecycle
WHO SHOULD ATTENDThis program is intended for specialists in one
or more functional areas of the international energy industry who
seek a comprehensive understanding of the gas industry. Many
participants have said this is the best program in the industry
today, due to its broad scope, challenge, realism, and fun.
INSTRUCTORSDavid A. T. Donohue, PhD, JDErhan Aslan, PhDCharles
Brankman, PhDY. Serdar Dogulu, PhDBradford R. Donohue, MBA,
CFAMarshall E. Frank, MSSamy H. Ibrahim, MSJohn B. (Jack) King,
MBACarlos Peralta, MBAKris Ramanadhan, PhDRobert W. Taylor, MSLaura
Varela, MS Eng
Overview of the International Gas IndustryGas measurements and
units; the gas chain; market structures; worldwide natural gas
economics; major players; evolution of the integrated gas-power
business.
Host Government AgreementsTypical host country exploration
agreements: summary of the history and key provisions, including
bonus payments, royalties, taxes; production sharing; participation
arrangements.
Exploration MethodsThe exploration process: petroleum geology,
exploration geophysics, well logging, developing exploration
prospects, preparing and interpreting geological maps; case
studies.
Drilling and Well CompletionsPlanning the well; logistics;
drilling functions; drilling procedures; formation evaluation
methods; horizontal wells; improvements in drilling.
Energy Project EconomicsEconomic yardsticks; project cash flow
before and after tax; tax expenses and benefits; net cash flow
stream and payout; time value of money; discounted cash flow
analysis and internal rate of return; risk assessment and
sensitivity analysis.
Unconventional Gas ResourcesA comprehensive and practical
understanding of the processes that are applied in the development
of unconventional gas projects, by looking at an active investment
area: the Marcellus shale project in the United States.
Gas Field Performance and Reserves EstimationOverview of
production and reservoir management in the gas system; production
technology; well testing; reservoir performance; reserves
estimation.
Gas Processing: Technology, Economics, LPG, and Ethylene
MarketsOverview of gas processing systems; liquid separation
processes; LPG fractionation options; compression; engineering
design and contracting methods; the market for LPGs; project
feasibility and economics; ethylene processing, economics, and
markets.
Gas Pipeline SystemsMajor considerations in the cost-effective
design, construction, and operation of gas pipeline systems; system
design variables: impact on cost and capacity; estimating project
costs; pipeline load factors; typical pipeline tariff; examples of
recent pipeline construction costs.
Load Balancing Systems and TariffsNeeds for load balancing and
system and customer benefits; storage options, capital and
operating costs: underground, cavern, and LNG facilities;
operational procedures; new options for marketing storage services;
case examples.
Gas Sales ContractsTypical terms in gas sales contracts;
price-volume; risk allocation; from gas contracts to tariffs;
indexing; re-openers; typical contract examples.
Measuring Financial PerformanceReview of financial statements:
income statement, balance sheet, cash flow, and shareholders
equity; capital and operating costs; measurements of financial
performance; benchmarking; taxation; the accounting and audit
process.
Gas Market Analysis and PricingThe need to identify gas markets
early; gas market analysis; netback pricing and interfuel
competition; market segments and market opportunities.
Gas-Fired Power PlantsOverview of combined-cycle gas turbine
power systems; technology: plant design, fuel efficiency, available
packages; project feasibility: capital costs, economics, risk,
financing, contracts, markets, capital and operating cost
estimating; contracting for fuel supply and power sales; worldwide
power trends; examples of recent and planned projects.
Overview of LNG BusinessOverview of the role of LNG within the
gas chain; technology: LNG plants, liquefaction, ship design and
operations, LNG re-gasification units; LNG project feasibility:
capital costs, economics, risk, financing, markets; LNG plant
design: gas reserves to support a plant, contract prices,
contracting; examples of recently completed and planned
projects.
Petrochemical Uses for Natural Gas: Methanol, Ammonia, and
Gas-to-Liquids ConversionUse of gas for ammonia and methanol and
conversion to liquid fuels; processes for conversion of gas to
methanol; markets and project economics; ammonia and fertilizers:
source of supply, types of processes, intermediate and end
products, markets; project economics; examples of recent and
planned projects; gas-to-liquids conversion; available technology;
major players; capital and operating costs; economic analysis.
Gas DistributionOverview of the gas distribution system; types
of customers and load factors; competition from other fuels;
sources of gas supply: gas supply contracts, prices, character of
gas
supply; structure and regulation of local distribution companies
(LDCs); marketing demands; design and construction of distribution
systems; expansion; operations: load balancing, distribution
planning, maintenance, environmental considerations, rate-making
policies and practices.
Project Financing: Commercial Debt Structuring and Case
StudyCorporate and project financing; sources of debt and equity
financing; public and private sources of capital; multilateral and
bilateral sources of financing; risk assessment and mitigation;
structuring of financing; preparing the financing plan; negotiating
the term sheet; preparing the financing documents; closing. Case
studies examples of project financing: Qatar Gas Project; Colombia
Power Project; U.S. Gas Storage Project.
Industry Regulation, Deregulation, and Convergence The nature of
regulation in the energy sector; history and current state of the
gas industry deregulation process at the wholesale and retail
markets: U.S., Europe, and elsewhere; effect of deregulation on the
structure of the industry; convergence of gas and power.
Marketing Natural Gas in anOpen Access EnvironmentU.S. market
structure; basic deal types and where they are done; the commercial
organization; and current issues in U.S. natural gas markets.
Managing Energy Price and Volume Risks: Futures and HedgingThe
history of energy price risk management; physical, forward, and
futures markets; typical futures market transactions; hedging,
swaps, and options; volume risk management; weather
derivatives.
06 07
UNIT ONE MAY 11 15, 2015 /OCTOBER 12 16, 2015
UPSTREAM GAS BUSINESS
02
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: MAY 11 22, 2015 OCTOBER 12 23, 2015
UNIT TWO MAY 18 22, 2015 /OCTOBER 19 23, 2015
DOWNSTREAM GAS BUSINESS
22nd Annual
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Financial Modeling and Petroleum Project EconomicsDuring these
two units, you will gain an integrated and practical understanding
of financial analysis tools and techniques for the oil and gas
industry that are related to building proforma project analysis,
learning different methods of financial analysis, and applying
different risk analysis tools to projects. The instructional format
capitalizes on a careful balance of formal lectures by leading
experts and specially developed workshops and business games.
FINANCIAL ANALYSIS BUSINESS GAME: OCEANA
This business game is an integral part of the learning process.
Participants, divided into teams, make real-life technical,
financial, and market decisions that commonly confront managers
today. Team performance is measured on a financial basis and is
catalyzed by healthy competition.
Participants, working in teams, will evaluate an oil and gas
business opportunity in the Republic of Oceana, near Indonesia.
They build a financial model that will integrate various risks
associated with the investment. This model will utilize a proposed
Production Sharing Agreement and incorporate revenue, capital and
operating costs, financing costs, and tax projections for the life
of the project.
Throughout the program, teams will add layers of complexity to
the model by incorporating the different types of risk analysis
tools presented in the lectures. The teams will present their
project analysis to a decision review board by outlining the risk
profile and expected performance measures of the project. They then
learn the outcome of those decisions. Emphasis will be placed on
the practical implementation of the tools presented in lecture and
on developing practical financial modeling skills.
WORKSHOP SESSIONS INCLUDE:
n Modeling the production sharing agreement
n Building the base-case proforma financial statements
n Calculating standard measures of performance
n Sensitivity and scenario analysis
n Decision trees and expected monetary value
n Monte Carlo simulation
n Project selections, stakeholder, and
financial analysis
n Simulation of team investments in the
economic environment
n Evaluation of performance and presentation of results
WHO SHOULD ATTENDThis program is designed specifically for
energy managers, supervisors, and key employees from broad
functional areas, such as finance, technology, and project
development who wish to expand their knowledge of financial
modeling and petroleum project economics.
INSTRUCTORSDavid A. T. Donohue, PhD, JD Erhan Aslan, PhDCharles
Brankman, PhDBradford R. Donohue, MBA, CFAJohn B. (Jack) King,
MBAMichael Kraten, PhD, CPACarlos Peralta, MBARick Squires, MS
Overview of the Petroleum Industry TodayOil and gas measurements
and units; value chains; market structures; worldwide oil and gas
economics; major players; evolution of the integrated oil and gas
business.
Introduction to Accounting and Financial StatementsBasic
financial and accounting concepts and standard technology;
depreciation, impairment, and acquisition accounting; financial
statements; accounting for investments; equity methods and
consolidations.
Financial Statement AnalysisBackground needed to understand and
build models of the four key corporate financial statements; review
and discussion of key measures of financial performance;
consideration of the measures used by major companies and of
participants companies; steps required to build proforma financial
projections.
Overview of Oil and Gas AccountingDefinition of various industry
terms; classification of reserves and resources; introduction of
two major accounting options to account for oil and gas costs:
successful efforts and full cost; GAAP filing and valuation methods
to comply with SEC filing requirements, including asset impairment
and asset retirement obligations.
Project Financing: Commercial Debt FinanceCorporate and project
financing; sources of debt and equity financing; public and private
sources of capital; multilateral and bilateral sources of
financing; risk assessment and mitigation; structuring of
financing; preparing the financing plan; negotiating the term
sheet; preparing the financing documents; closing. Case studies
examples of project financing: Qatar Gas Project; Colombia Power
Project; U.S. Gas Storage Project.
Energy Project Economics and Measures of PerformanceProject cash
flow analysis, discounting cash flow to obtain present value and
internal rate of return, the cost of capital and the effect of debt
financing, other measures of project performance; sensitivity to
changes in key variables.
The Business ModelUsing the balanced scorecard framework,
regression analysis, and flexible budgeting, how does the
organization earn profits? What are the key strategic drivers of
financial success?
Cost and Expenses True costs of developing and delivering
products and services; using gross profit analysis, activity-based
costing techniques, and cost variance schedules.
Financial StatementsUsing the business model, volume, expense,
and revenue data to construct and understand financial reports;
using balance sheets, income statements, cash flow statements,
ratio analysis, and performance outcome measurements.
Introduction to Petroleum Economics The fundamentals of
economics: background and its application to the oil and gas
industries.
Energy Project Risk and Uncertainty Identifying and quantifying
energy projects risks and uncertainty into project analysis; using
statistical measures to quantify risk; two key risk assessment
methods: scenario analysis and sensitivity analysis.
Event IdentificationIdentifying trouble spots that threaten the
organizations ability to generate profit and value, using event
inventories, target risk-return profiles, risk tolerance levels,
and event tracking processes.
Probability Theory and Quantitative AnalysisIntroduction to
probability theory, including probability density functions,
overview of typical probability distributions and definition of key
terms; applying probability theory in decision analysis with
emphasis on concept of expected value.
Decision Tree AnalysisApplying a structured method for
investment decision analysis; understanding the implications of
different sets of decisions; identifying areas to reduce risk and
understand economic opportunity cost of capital; identifying
implications of various forms of contracts; analyzing implications
of incremental project decisions.
Risk AssessmentPrioritizing trouble spots by likelihood of
occurrence and potential impact. Using likelihood and impact
tables, inherent and residual risk charts, and heat maps.
Risk ResponseAssessing the organizations ability to respond to
trouble spot flare-ups on paper and in reality. Using avoidance,
sharing, reduction, and acceptance practices, as well as portfolio
analysis techniques.
Monte Carlo Simulation Extending the decision tree analysis
framework for situations that include continuous probability
scenarios; identifying the power and limitations of simulations,
emphasis placed on relevance of expected value; Crystal Ball
commercial software used to model risk in financial model.
Field Development, Reservoir Performance, and Surface
FacilitiesFormation evaluation; estimating reserves; field
development; inflow performance; surface facilities design for both
onshore and offshore operations; integrated reservoir management;
enhanced recovery.
Managing Energy Price and Volume Risks: Futures and HedgingThe
history of energy price risk management; physical, forward, and
futures markets; typical futures market transactions; hedging,
swaps, and options; volume risk management; weather
derivatives.
Portfolio Theory and Real OptionsIntroduction to and discussion
of Real Options and Portfolio Optimization, two other key methods
used extensively today by many oil companies to evaluate project
opportunities; understanding how a collection of investments can
decrease overall risk in the portfolio.
08 09
UNIT ONE JUNE 1 5, 2015 /SEPTEMBER 14 18, 2015
FINANCIAL MODELING FOR THE OIL AND GAS INDUSTRY
03
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: JUNE 1 12, 2015SEPTEMBER 14 25, 2015
UNIT TWO JUNE 8 12, 2015 /SEPTEMBER 21 25, 2015
PETROLEUM PROJECT ECONOMICS AND RISK ANALYSIS
Oceana Industrial Park
Java Sea
Republic of Oceana Republic of Oceana
Subsurface Structural Map
Baru Prospect
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Advanced Petroleum Management Program: Enterprise-Wide
Leadership in Times of ChangeThis program focuses on managing and
leading international oil and gas enterprises during times of
change and maximizing overall performance. Its objectives are
achieved through group discussions of business case studies and
team participation in an enterprise-wide business simulation game.
The simulation game will challenge teams to plan and manage the
growth of an organization as it faces a series of strategic
decisions that require the assessment of international, national,
and local trends and policies, portfolio performance, enterprise
resources, as well as environmental and business risks.
GROWING THE INTERNATIONAL AFFILIATE OF A NATIONAL OIL COMPANY:
WANOCO
You are the senior executive in charge of managing the
development and expansion of WANOCO International, the
international affiliate of the West African National Oil Company.
Your challenge is to build a profitable oil and gas enterprise in
Latin America and Africa. At the outset of the business game, you
manage a set of oil and gas industry assets that have mixed levels
of performance. As new opportunities arise, you are asked to make
decisions that lead to an optimal portfolio. You will measure the
attractiveness of each opportunity based on commercial, financial,
political, social, regulatory, and other characteristics, and
implement your decisions effectively. In the process, you will
respond to many different business challenges. Teams participate
over a simulated 20-year time span and report final performance
results.
WHO SHOULD ATTENDThis program is designed for international oil
and gas managers and executives who seek to enhance their skills in
managing and leading international oil and gas enterprises during
times of change so as to maximize overall performance.
INSTRUCTORSDavid A. T. Donohue, PhD, JDCharles Brankman, PhDY.
Serdar Dogulu, PhDRobert Meyer, MA Robert F. Ryan, MSJack A.
Slotnick, CPEARobert W. Taylor, MS
Global, Regional, and Local Industry Trends and
ExpectationsIdentification of global trends that affect all
businesses; petroleum industry trends; local and regional issues
that affect the local energy businesses. Current conditions and
growth forecasts of the business environment.
Enterprise Business Fundamentals
Strategic Planning Vision and mission statements, goals,
objectives, organizational structure, and the processes for
managing change.
Measuring Corporate Financial Performance Historical and pro
forma financial statements, portfolio analysis, capacity to obtain
additional capital resources.
Characterizing the Existing Businesses Participants will analyze
and characterize the portfolio of the existing projects and rank
them according to business performance fundamentals and the
strategic objectives of the enterprise. This provides a greater
understanding of the contribution of each business to the
portfolio, their current tangible and intangible benefits, threats,
shortcomings, and the links between them.
Stage-Gate Project Management SystemTeams will apply the
Stage-Gate project management process to benchmark performance,
satisfy stakeholder objectives, allow scrutiny of recommendations
and risks, and conduct a formal review at end of each stage.
International Affiliates of NOCsFormation of new business models
and alliances; changing roles in global and local markets;
implications on the supply of oil and gas resources.
WORkSHOP ACTIVITIES:
Round One DecisionsEach team will evaluate new investment
opportunities and, if it wishes, divest its interest in existing
businesses. They will also conduct SWOT analyses and business
profiling exercises.
Round Two DecisionsFive years after the Round One decisions,
teams receive an update on the performance of their enterprise
businesses, the current business environment, and any changes in
the world, petroleum, and local trends that may have occurred. They
are offered a new slate of business opportunities to consider.
These decisions continue during the planning, construction,
startup, and operation of all new undertakings.
Analysis and Presentations of Results Teams prepare and deliver
presentations in response to Rounds One and Twos workshop
activities.
Creating Effective Sustainability ProgramsOptions to implement
sustainability programs within the developing world; linkages
between sustainability and social responsibility. Petroleum
industry case studies.
Sustainability Scorecard: How Do Companies Measure
Performance?How companies and the industry measure sustainability
success; review and discussion of industry guidelines and recent
company reports; sustainability reporting and guidelines; global
reporting initiatives; IP/ECA/API.
Managing Effective Environmental Impact ProgramsDesign and
implementation of successful environmental management programs; the
World Bank standards for preparing environmental impact statements;
review of recent EIS programs.
Building and Maintaining a Safety CultureDesign and
implementation of a safety culture; the role of management;
recognition of employees. Case studies of companies which have
implemented successful programs, Chevrons Agbami case study.
Leadership Fundamentals Participants will explore, through the
use of business case studies, the fundamentals of leadership and
managing enterprise growth. They will learn how leaders manage
change, especially for international enterprises.
Developing a Competent National WorkforceThe process of
planning, managing, and implementing a competency management system
to enhance the performance of the national workforce. Case studies
of successful competency management system implementations.
Managing Local Political Disputes and Security of
AssetsAnticipating and managing disputes which involve ownership
claims by indigenous populations or failure to distribute petroleum
revenues to local communities; managing security of assets and
preventing disruption of production.
Social MediaThe role and value of social media while managing an
international petroleum enterprise. Social media best practices and
common mistakes.
WORkSHOP ACTIVITIES:
Round Three Decisions: Planning and Implementing Sustainability
ProgramsTeams are asked to develop comprehensive sustainability
programs for one or more of their investments. They will be asked
to make a case for change in a business.
Round Four Decisions: Responding to Incidents Teams are asked to
respond to an HSE incident and make a new set of commercial
decisions, five years after Round Three decisions.
Analysis and Presentation of Results Teams receive the financial
performance of their enterprise over a 20-year period and prepare
presentations of their major decisions and their overall
impact.
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UNIT ONE JUNE 1 5, 2015
GROWING THE ORGANIZATION IN RESPONSE TO COMPLEX BUSINESS
DRIVERS
04
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: JUNE 1 12, 2015
UNIT TWO JUNE 8 12, 2015
SUSTAINABILITY: ANTICIPATING ENVIRONMENTAL, SOCIAL,
AND ORGANIZATIONAL CHALLENGES
IHRDCs Robert Taylor conducts a lecture session in the
IHRDC Management Institute.
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International LNG Business Management Certificate ProgramThis
two-week, major capital project program is ideal for those who wish
to learn how major LNG projects are developed, from concept to
operation. Unit one is devoted to LNG fundamentals including LNG
market history, pricing and trends; major players along the LNG
value chain; application of Stages 1 and 2 of the Stage-Gate
process; LNG project assessment and development planning: from
supply to delivery including, gas resources, gas field development,
LNG technologies, and major commercial requirements.
Unit two reflects how LNG and other major oil and gas capital
projects are completed on time and within budget. It is devoted to
the application of Stages 3-5 of the Stage-Gate process: from
commissioning the Front-End Engineering (FEED) study to obtaining
Final Investment Decision (FID); planning, selecting, and managing
EPC contracting, commissioning, and, after in-service, project
reappraisal, startup, and operation.
MANAGING AN LNG PROJECT BUSINESS GAME: COSMOS
Your company has made a major rich gas discovery offshore the
Republic of Cosmos in East Africa, and your team has been asked to
manage its development as a major LNG export project following the
Stage-Gate project management process.
In the first week, you will progress the project through Stages
One and Two. In Stage Two you will assess the gas resource, define
the scope of the LNG project, and state the business case for
development. During Stage Two you will consider development options
including technology selection, conceptual design, execution
strategy, costs and schedule estimates, and project financing.
During the second week, your team will continue developing the
LNG project through Stage Three (Front End Engineering Design and
Final Investment Decision), Stage Four (Engineering Design
Procurement and Construction), and Stage Five (Startup and
Operations).
Throughout the workshop sessions, teams of participants will
face important decisions associated with the commercial, legal,
financial, design, planning, and development of this challenging
LNG project. They will assess and contract to sell LNG to various
market opportunities (Brazil, China, U.K., and spot market),
negotiate project financing, and develop and execute the project
while considering realistic challenges and constraints that are
typically faced by the developers of large energy projects.
Participants will present their teams decisions and business
results in a friendly learning competition to win the team
prize.
WHO SHOULD ATTENDThis program will benefit managers, government
officials, and specialists in one or more functional areas of the
international energy industry who seek a comprehensive
understanding of the liquefied natural gas sector of the
international gas industry and/or how major oil and gas industry
capital projects are successfully managed. It is an ideal
supplement to IHRDCs gas industry foundation program, The
International Gas Business Management Certificate Program, which
many participants refer to as the best program in the industry
today.
INSTRUCTORSDavid A.T. Donohue, PhD, JDErhan Aslan, PhDCharles
Brankman, PhDY. Serdar Dogulu, PhDJohn B. (Jack) King, MBAKris
Ramanadhan, PhD
Gas Fundamentals: Gas Hydrocarbon Properties and
ConversionNatural gas hydrocarbons and their chemical properties,
gas volume, and thermal energy measures; gas industry terminology
and LNG acronyms. Gas quality, heating value, density, gas liquid
yield; comparative energy value analysis: natural gas, LPGs,
condensate, LNG.
Gas Market Fundamentals Gas Market FundamentalsOverview of the
International Gas MarketsLNG Value Chain, Global Market History and
Trends
Market structure and value chain; gas market sectors; historical
gas market supply and demand in various regions of the world and
projected future demand. LNG value chain; LNG business history;
future market trends. Pricing options: base and indexing options;
liberalized market pricing; current pricing in Asia, Europe, North
America, potential hybrid pricing. Locations of supply,
liquefaction, receiving terminals. Key players: sellers, buyers,
NOCs, IOCs, lenders and banks, joint ventures, ministries, legal
firms.
LNG Project FundamentalsOverview of Gas Supply for an LNG
ProjectLNG Liquefaction PlantsLNG Transportation and Receiving
Terminals
Gas supply: exploration, drilling, resource estimation, field
development; natural gas processing, gas liquids, market options;
LNG liquefaction plants: design, technology, development schedule,
capital costs; LNG ships: technology, operating fundamentals and
capital costs, ship ownership options; LNG receiving terminals:
design, technology, capital costs, third party tariffs.
LNG Legal FundamentalsLNG Sales and Purchase Agreements:
History, Protocols, and DocumentsLNG Shipping AgreementsLNG Joint
Ventures and Operating Agreements
Major legal agreements; joint venture agreements; LNG sale and
purchase agreements: terms, history, relationships, negotiating
team composition, legal terminology issues; charter party for LNG
ships, receiving terminal access agreements.
LNG Commercial FundamentalsEnergy Project EconomicsProject
Financing of LNG ProjectsIntroduction to FEED Contracts and
Tendering Processes
Project economics: economic yardsticks, cash flow, tax expenses,
internal rate of return, risk assessment, sensitivity analysis;
project financing: commercial debt structuring; project risk
analysis; FEED and EPC tendering and contracting.
LNG Project ManagementThe LNG Stage-Gate ProcessStage 1:
Assessment of LNG Project OpportunityStage 2: Project Development
Optimization Early Estimation of Project Costs and Schedule
Management of LNG Project Environmental and Socioeconomic
ImpactsStage 3: Requirements and Execution Planning
Stage-Gate project management process; project alignment and
integration of the full value chain; fulfilling the requirements of
Stages 1 and 2: from opportunity assessment to project
optimization; planning for Stage 3. Estimating project costs,
schedule, risks, environmental and social impacts, and capital
funding.
Overview of the Stage-Gate Project Management ProcessThe
development cycle of a major oil and gas industry capital projects.
The use of the Stage-Gate project management process to enhance
decision making, risk management, project schedule, and cost
control.
Execution Strategies for FEL (Front-End Loading) and FEED (Front
End Engineering Design)Front-end loading, design basis for FEED,
quality of deliverables from FEED, FEED contractor
pre-qualification and selection, FEED to EPC transition.
Introduction to EPC (Engineering Design, Procurement,
Construction) Contract DevelopmentProject contracting strategies,
EPC contractor roles and responsibilities, contract development and
tendering process, bid package development, criteria and
methodology for EPC contractor selection, lump sum vs. reimbursable
contracting options, agreements and guarantees.
Estimating Project Costs and ScheduleCost estimating
classifications, approach to cost estimating for FID, estimating
capital and operating costs, project schedule and contingency
assessment, calibration of costs and schedule compared to other
projects.
Introduction to Stage 4: Project Execution PlanningStage 4
execution planning, project governance, scope and technical issues,
management of change processes, interface management, contracting
plans, work breakdown structure, SHE plans, project economics and
funding plans, communications plans.
Detailed Engineering Activities and CoordinationEPC contract
award, global and detailed engineering activities, interfaces with
procurement and construction, detailed engineering organization and
governance.
Procurement Activities and CoordinationGlobal procurement
strategies, success factors, quality control and quality assurance
systems, total lifecycle cost analysis, interfaces with detailed
engineering and construction, contract administration.
Construction Planning and Management PrinciplesFlawless
execution needs, plant layout and plot plans, site prep and laydown
areas, material logistics and control, construction quality
control, interfaces with detailed engineering and procurement,
multi-contractor interface management, construction progress
stewardship, handover to commissioning.
Construction Leadership Implementing SHE PrinciplesSafety
leadership and culture; safety management systems, safety pyramid
and stewardship, incident prevention, incident evaluation, root
cause analysis, proactive assessment of safety in the workplace,
cultural diversity, related challenges.
Completion of Construction, Commissioning and StartupKey
elements of startup, organizational design, safety during
commissioning, pre-startup audits, training requirements,
coordination with upstream and downstream facilities and customers,
development of punch-list items and handover to operations.
Project Closeout, Reappraisal, and Long-Term Operations
Systematic capture of post-project learnings: project closeout
documentation, investment reappraisal techniques, look-backs and
comparison with FID. Expanding plant capacity and managing an LNG
facility and relationships after startup.
12 13
UNIT ONE JUNE 15 19, 2015
LNG BUSINESS FUNDAMENTALS
The sessions are identified in brown and the content of one or
more lectures are shown below these titles.
05
FULL PROGRAM DATES: JUNE 15 26, 2015
UNIT TWO JUNE 22 26, 2015
MANAGEMENT OF MAJOR INTERNATIONAL
PETROLEUM PROJECTS: LNG CASE STUDY
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DEVELOPING NICOILSSTRATEGIC PLAN: NICOLA
This business game is an integral part of the learning process.
Participants, divided into teams, make real-life strategic
decisions that commonly confront managers in the international
petroleum business today.
Teams have been retained to work with a small U.S. company of
exploration specialists, Nicoil, that has made a major oil and gas
discovery on a shallow offshore block licensed by the Republic of
Nicola, an island republic off the west coast of Africa. Reports
state that two major discoveries were made: an oil reservoir
containing an estimated 50 million barrels in-place and a deeper
gas discovery containing an estimated 5 TCF in-place. The team
assignment is to develop a strategic plan for the company.
A consultant has provided the company with a menu of options
that it could pursue to maximize the value of its discoveries. It
will be up to teams to decide on Nicoils business strategy and then
prepare and implement a strategic plan.
WORKSHOP SESSIONS INCLUDE:
n Identify Nicoils strategic plan, vision, and
mission statement
n Convert strategic plan to Balanced Scorecard
n Adopt Balanced Scorecard to implement plan
n Identify Nicoils corporate culture
WHO SHOULD ATTENDThis program is designed specifically for mid-
to senior- managers and supervisors from all sectors of the oil and
gas industry who wish to enhance their competencies in four
essential management areas.
INSTRUCTORSDavid A. T. Donohue, PhD, JDCharles Brankman, PhDJohn
B. (Jack) King, MBAElizabeth MacDonald, MARobert F. Ryan, MSKermitt
Walrond, PhD
Leadership Skills Needed for High Performance
OrganizationsEffective individual and team leadership and
management: motivation, managerial styles; organizational climate;
goal setting and action planning; leading change methodology;
simulation, presentation, discussion, case studies, small group
work, and assessment.
Leadership Case Study: Transforming the U.S. Marketing and
Refining Division of a Major Oil CompanyHow a major oil company
went from last to first in net margin per gallon in the marketing
and refining of gasoline in the U.S. How strategic planning,
leadership skills, and the use of the Balanced Scorecard were
fundamental to this success.
Essential Negotiation Skills: A Process for Positive ResultsThe
essentials of positive negotiation: the process of positive
negotiation developed at the Harvard Negotiation Workshop applied
to a petroleum case study. The key steps you will take to
successful negotiations are:
Step One: Discover Underlying Interests of the Parties
Underlying motivations; needs and concerns, fears and aspirations;
understand your interests; understand the interests of the other
side.
Step Two: Generate Options to a Negotiated Solution Inventing
options to meet underlying interests; option as a possible
agreement but not a commitment; obstacles that inhibit the
invention of options.
Step Three: Identify and Use Independent Standards Making
negotiation a joint search for independent standards; use standards
to persuade and protect; distinguish which standards are
appropriate.
Step Four: Deal with People Problems Separate the people from
the negotiating problem; use people techniques to solve people
problems: acknowledge emotions without blaming, improve
communication, listen actively.
Step Five: Generating Alternatives to a Negotiated Solution
Explore alternatives to the existing negotiated outcome; improve
the terms of the negotiations; have an alternative solution in your
back pocket; enhance confidence in the negotiating process.
Step Six: Reaching Closure Think about closure before you begin
negotiations; move toward closure gradually as negotiations
proceed; start with a framework for agreement; only agree to
everything at the end.
Effective Business CommunicationSetting a communication
strategy: credibility, persuasion, and channel choice. Presentation
structure: writing vs. presentations vs. meetings vs. one-to-one
conversations; writing more effectively; making effective
presentations; running efficient meetings; speaking effectively
one-on-one. Case studies and workshop sessions.
Strategic Planning and ImplementationMajor trends and drivers of
change within the international oil and gas industry: anticipating
the future throughout the oil and gas value chains. Latest
approaches to strategic planning and its importance for setting
company vision and goals; effective implementation of strategy;
planning and implementation of the plan using the Balanced
Scorecard. Historical structure of the international oil and gas
industry. Examples of strategic planning by key international
companies including Petrobras, Mobil Oil, and others.
14 15
UNIT ONE JUNE 15 19, 2015
LEADERSHIP AND ESSENTIAL NEGOTIATION SKILLS
This two-week program is designed for mid-to-senior managers and
supervisors from all sectors of the oil and gas industry who seek
to enhance four essential critical management skills: Leadership,
Negotiation, Business Communication, and Strategic Planning. The
program is taught by highly regarded instructors who have broad and
practical management experience in the international oil and gas
industry or are specialists in the area in which they teach.06
This program is one in a million. I have attended several
professional and management courses in the U.S. and
Europe, but IHRDC outperforms them all.2013 Participant
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: JUNE 15 26, 2015
UNIT TWO JUNE 22 26, 2015
EFFECTIVE BUSINESS COMMUNICATION AND STRATEGIC PLANNING
Essential Skills for Oil and Gas Professionals
IHRDCs Robert Ryan conducts an interactive
Leadership Skills session.
Republic of Nicola
Atlantic Ocean
AFRICA
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International PetroleumManagement Certificate ProgramFor more
than twenty years, participants have consistently called this The
BEST management program in the petroleum industry today! The
four-week program provides learning in four key areas and includes
compelling lectures by a strong and diverse faculty, as well as
team participation in IHRDCs unique and challenging oil and gas
business games.
INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND
The business game during Units One and Two is an integral part
of the learning process. Participants, divided into teams, make
real-life technical, financial, and market decisions that commonly
confront managers in the international petroleum business today.
Team performance is measured on a financial basis and is catalyzed
by healthy competition.
The international petroleum business game takes place in
Sandland, a fictitious country on the west coast of Africa. Team
objectives include developing oil and gas reserves and deciding on
the optimal way to develop and market the production. During each
workshop session, teams are provided with technical and economic
background that serve as basis for decisions to be made during that
session. Team decisions are made and require a commitment of both
capital and operating funds and occur during the following
intervals: three years of exploration, two years of development,
and fifteen years of production.
WORKSHOP SESSIONS INCLUDE:
n Introduction to the workshop
n Negotiating the right to explore in Sandland
n The exploration survey stage
n Exploration and delineation drilling
n Reserves estimation and field development
n Gas processing
n Oil and gas pipelines and port facilities
n Sandland operations accounting
n Combined-cycle power plants
n Oil tanker charter decisions
n Refinery development decisions
n Financing the port expansion
n Ammonia plants
n Gas export pipeline decisions
n Crude oil marketing decisions
n Strategic planning and decision analysis
n Evaluation of performance and presentation of results
WHO SHOULD ATTENDThis program is intended for managers in the
many functional areas of the international petroleum and natural
gas industry, including exploration, production, refinery and
petrochemical operations, marketing, law, human resources,
accounting, and finance. More than 1,700 managers have taken this
program, including individuals who hold very senior positions in
the oil and gas industry.
INSTRUCTORSDavid A. T. Donohue, PhD, JDMeg Annesley, BS Erhan
Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDBradford R.
Donohue, MBA, CFAMarshall E. Frank, BSJohn B. (Jack) King,
MBAShashi Kumar, PhDMichael Lynch, MSSkip Maryan, JDRobert Meyer,
MACarlos Peralta, MBAKris Ramanadhan, PhDRobert F. Ryan, MSJack A.
Slotnick, CPEARobert W. Taylor, MSLaura Varela, MS EngKermitt
Walrond, PhD
Overview of the Energy Industry Oil and gas measurements and
units; the value chains; market structures; worldwide oil and gas
economics; major players; evolution of the integrated oil and gas
business.
Host Government AgreementsTypical host country exploration
agreements: summary of the history and key provisions, including
bonus payments, royalties, taxes; production sharing; participation
arrangements.
Exploration MethodsThe exploration process: petroleum geology,
exploration geophysics, well logging, developing exploration
prospects, preparing and interpreting geological maps; case
studies.
Drilling and Well CompletionsPlanning the well; logistics;
drilling functions; drilling procedures; formation evaluation
methods; horizontal wells; improvements in drilling.
Field Development and Production CycleOnshore and offshore field
development and long-term production subsurface design; reservoir
fundamentals and reserves estimation: field development; inflow
performance; integrated reservoir management; and enhanced
recovery. Surface facilities design: design for both onshore and
offshore operations; production operations and management;
investment analysis and reporting of performance; case studies.
Gas Processing and Marketing of LPGsProperties of gas and gas
liquids; processing of associated gas; markets for LPGs; economics
of natural gas plants.
Crude Oil and Natural Gas Pipeline SystemsIntroduction to crude
oil and natural gas pipelines; design, construction, and operation
of pipeline systems; estimating project costs; pipeline contracts
and tariffs; new pipeline developments.
Measuring Financial PerformanceHow companies report to their
shareholders; GAAP principles; income statement; balance sheet;
cash flow statement; equity statement; taxation and tax codes;
preparing corporate financials; the audit; reading a major company
annual report; measures of performance and the setting of company
goals.
Petroleum Industry Accounting and TaxationSuccessful efforts vs.
full-cost accounting; corporate taxation; petroleum taxation;
accounting for host government and joint venture agreements;
supplemental reserves reports included in annual reports.
Unconventional Oil and Gas ResourcesA comprehensive and
practical understanding of the processes that are applied in the
development of unconventional oil and gas projects, by looking at
some active investment areas.
Energy Project EconomicsEconomic yardsticks; project cash flow
before and after tax; tax expenses and benefits; net cash flow
stream and payout; time value of money; opportunity cost and
present value of net cash flow; discounted cash flow analysis and
internal rate of return; risk assessment and sensitivity analysis;
examples of the economic analysis of energy projects.
Worldwide Petroleum EconomicsWorldwide energy supply; demand;
reserves; pricing: corporate strategy; recent history and
prediction of future trends; how petroleum economists make
predictions.
Markets for Associated Natural GasThe natural gas value chain:
industry structure and regional markets, interfuel competition; gas
distribution; regulation and deregulation; economics and markets
for gas, including combined-cycle power plants, LNG, ammonia,
methanol, and gas-to-liquids.
Refining and PetrochemicalsRefinery: capacity evolution;
technology changes; capital and operating costs; profitability;
net-back estimation and recent trends. Petrochemicals in
perspective: links to refining; key product families; industry
drivers: cost of production, supply and demand; profitability and
price forecasting; prospects for the future: maturity,
environmental concerns, global competition.
Crude Oil Tanker TransportationThe tanker industry and market
trends: an overview of the main characteristics of crude tankers;
capital and operating costs; pollution at sea and new regulations;
calculating tanker transportation rates; Worldscale and charter
arrangements.
Marketing of Crude Oil and ProductsDevelopment of the free
market for oil; current international market structure; regional
markets: physicals, futures, forwards, derivatives, options; roles
of participants, price formation, price volatility; price
reporting; crude oil and product pricing; negotiating and pricing
petroleum sales contracts; introduction to hedging and price risk
management.
Products DistributionDistribution and retail marketing of
petroleum products; structure of the margins realized along the
distribution value chain; transitions in the marketing of
transportation fuels; economics of the modern gasoline station.
16 17
UNIT ONE SEPTEMBER 14 18, 2015
UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM
ACCOUNTING
07
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: SEPTEMBER 14 OCTOBER 9, 2015
UNIT TWO SEPTEMBER 21 25, 2015
DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS
Ann
RefinerySite
Highway 1A
High
way 1
San
dland
River
AtlanticOcean
Ann
BradsCove
SandlandNational Forest
SandlandNational Forest
Outstanding, very engaging and rewarding
with a lot of new insights and learnings.2014 Participant
25th
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LATIN AMERICA POWER WORKSHOP: SUCRE
During Unit Three, teams are asked to develop a realistic CCGT
power project in the Republic of Sucre, a fictitious country in
Latin America. Each team is asked to prepare a business plan for
the project, which will include a set of decisions with respect to
construction, fuel supply and power purchase agreements, EPC and
O&M contracts, and financing. Decisions will be run over 15
years of simulated operations for the business game
environment.
WORKSHOP SESSIONS INCLUDE:
n Project description, management, and
market analysis
n Project economics and proforma analysis
n Project schedule and management plan
n Identifying the project risks
n Reviewing the financing term sheet
n Design the project financing
n Review the fuel supply and power
sales agreements
n Evaluation of performance and presentation
of results
International PetroleumManagement Certificate Program
DEVELOPING NICOILS STRATEGIC PLAN: NICOLA
During Unit Four of this program, teams have been retained to
work with a small U.S. company of exploration specialists, Nicoil.
They have made a major oil and gas discovery on a shallow offshore
block licensed by the Republic of Nicola, an island republic off
the west coast of Africa. Reports state that two major discoveries
were made: an oil reservoir containing an estimated 50 million
barrels in-place and a deeper gas discovery containing an estimated
5 TCF in-place. The team assignment is to develop a strategic
plan.
A consultant has provided the company with a menu of options
that it could pursue to maximize the value of its discoveries. It
will be up to teams to decide on Nicoils business strategy and then
prepare and implement a plan to achieve strategic and business
goals.
WORKSHOP SESSIONS INCLUDE:
n Identify Nicoils strategic plan, vision, and mission
n Prepare a big picture view of Nicoils needs
and opportunities
n Convert strategic plan to Balanced Scorecard
n Adopt Balanced Scorecard to implement plan
The Process of Commercializing Energy ProjectsKey steps in the
formation and commercialization of an energy project from
opportunity to operation; screening and feasibility analysis;
design and development; key project agreements; preparing proforma
financial projections; risk analysis and risk management; project
management; project definition; resource scheduling, cost
estimating; project controls; cost engineering; detailed
engineering; procurement; construction management; project
accounting and auditing; environmental management. Project
Management Institute (PMI) body of knowledge and certification
requirements.
Project Planning and Management of Energy ProjectsSteps in the
development of a petroleum project: screening studies, feasibility
studies; detailed engineering, environmental studies; financing
construction and operation. Project management examples of energy
projects: the integrated planning and development of an
international combined-cycle power plant. Case study: Developing
the Steuben Gas Storage Facility.
Health, Safety, and Environmental (HSE) Challenges in Petroleum
OperationsWorldwide developments in HSE performance, management,
and regulations; key technical, managerial, and societal issues and
responses; sustainable development, eco-efficiency, social impact;
factors that affect cost; integration of HSE in the business; risk
acceptance and tolerance, due diligence, accountability, liability;
integrated health, safety, and environmental management systems,
international standards, ISO 14001 certification, EMAS
verification, audit, reporting and assurance to stakeholders.
Petroleum LawKey legal issues in petroleum management;
transnational and international oil and gas law; the role of law in
commercial transactions: role of the legal system; role of the
attorney; commercial relationships; host country agreements and
government relations, joint venture agreements; oil and gas
contracts and agreements; crude oil sales and transportation; risk
management and dispute resolution.
Financing of Energy ProjectsFinancing petroleum projects;
sources of debt and equity; preparing the financing proposal;
negotiating financing; reaching the decision to proceed; project
financing: structuring, role of multilateral and bilateral
agencies; case studies: project financing of international oil,
gas, and power projects.
Industry Regulation, Deregulation, and Convergence The nature of
regulation in the energy sector; history and current state of the
gas industry deregulation process at the wholesale and retail
markets: U.S., Europe, and elsewhere; effect of deregulation on the
structure of the industry; convergence of gas and power.
Leadership Skills Needed for High Performance
OrganizationsEffective leadership and management: motivation,
managerial styles; organizational climate; goal setting and action
planning; leading change methodology; simulation, presentation,
discussion, case studies, small group work, and assessment.
Leadership Case Study: Transforming the U.S. Marketing and
Refining Division of a Major Oil CompanyHow a major oil company
went from last to first in net margin per gallon in the marketing
and refining of gasoline in the U.S. How strategic planning,
leadership skills, and the use of the Balanced Scorecard were
fundamental to this success.
Current HR Practices in International Oil and GasCurrent HR
policies and procedures, organizational design, recruitment,
manpower planning and development in the performance of the
organization; defining job-specific competency models and
development plans.
Strategic Planning and ImplementationMajor trends and drivers of
change within the international oil and gas industry: anticipating
the future throughout the oil and gas value chains. Latest
approaches to strategic planning and how important such plans are
for setting company vision and goals; effective implementation of
strategy; planning and implementation of the plan using the
Balanced Scorecard. Historical structure of the international oil
and gas industry. Examples of strategic planning by key
international companies including Petrobras, Mobil Oil, and
others.
Essential Negotiation Skills: A Process for Positive ResultsThe
essentials of positive negotiation: the process of positive
negotiation developed at the Harvard Negotiation Workshop applied
to a petroleum case study. The key steps you will take to
successful negotiations are: identify interests, invent options,
use standards, manage people problems, develop alternatives, BATNA,
and reach closure. Team participation in an oil and gas case
study.
18 19
UNIT THREE SEPTEMBER 28 OCTOBER 2, 2015
PETROLEUM PROJECT DEVELOPMENT07
learn more or register for programs at www.ihrdc.com
UNIT FOUR OCTOBER 5 9, 2015
KEY SKILLS FOR THE PETROLEUM MANAGER Republic of Nicola
Atlantic Ocean
AFRICA
continued
Llan
osRiv
er
High
way 1
SucreNational
Forest
Highway 1A
Santos
Grid Site
Field Site
Gas
Carlos Cove
Pacific Ocean
Refinery
140 km
25th
-
HR Processes, Competency Development, and Change Management
ProgramThis program is ideal for those who seek a firm grounding in
the Human Resource (HR) challenges facing the international oil and
gas industry today, and the ways in which HR can contribute to
implementing strategic plans, including the management of
change.
DEVELOPING NICOILS HR AND STRATEGIC PLAN: NICOLA
This business game is an integral part of the learning process.
Teams of participants make real-life strategic and HR decisions
that commonly confront managers in the international petroleum
business today.
Teams have been retained to work with a small U.S. company of
exploration specialists, Nicoil, that has made a major oil and gas
discovery on a shallow offshore block licensed by the Republic of
Nicola, an island republic off the west coast of Africa. Reports
state that two major discoveries were made: an oil reservoir
containing an estimated 50 million barrels in-place and a deeper
gas discovery containing an estimated 5 TCF in-place. The team
assignment is to develop a strategic plan, which includes a
comprehensive HR plan.
A consultant has provided the company with a menu of options
that it could pursue to maximize the value of its discoveries. It
will be up to teams to decide on Nicoils business strategy and then
prepare and implement a Workforce Success Strategy to achieve
strategic and business goals.
WORKSHOP SESSIONS INCLUDE:
n Identify Nicoils strategic plan, vision, and mission
n Prepare a big picture view of Nicoils needs
and opportunities
n Convert strategic plan to Balanced Scorecard
n Adopt Balanced Scorecard to implement plan
n Planning the Nicoil organization and
Workforce Scorecard
n Identify Nicoils corporate culture
n Build the Workforce Scorecard
n Build Nicoils leadership
n Add management and specialists functions
n Add O&M specialists
n Identify HR best practices for Nicoil
n Plan the merger of ManOil with Nicoil
n Team presentations of HR plans
WHO SHOULD ATTENDThis program is designed specifically for mid-
to senior- managers and supervisors from all sectors of the oil and
gas industry who wish to enhance their competencies in essential HR
management areas.
INSTRUCTORSDavid A. T. Donohue, PhD, JDRobert Meyer, MAKevin
Rohan, MBAJoseph Schechtman, MSCarol Ann Sharicz, PhDRobert W.
Taylor, MS
Overview of the Petroleum Industry Today Oil and gas
measurements and units; the value chains; market structures;
worldwide oil and gas economics; major players; evolution of the
integrated oil and gas business.
Systems Thinking: Developing a Big Picture VisionBenefits of
systems thinking to HR professionals; thinking systemically;
attitudes and behavior; and understanding complexity.
Building the Workforce ScorecardIntroduction to the Workforce
Scorecard; methods to align workforce withcorporate strategy;
measuring workforce success through metrics; threechallenges to
successful implementation; integrating with the Balanced
Scorecard.
Emotional Intelligence and the Corporate CultureOrganizational
culture and change; emotional intelligence and applying emotional
intelligence in your organization.
Human Resource ManagementHR processes; HR strategy model;
building a manpower plan; source of personnel; recruiting and
compensation.
Developing Competent Managers, Specialists, and O&M
Personnel in the Oil and Gas IndustryTypical competency levels,
competency assurance system and process; effective development
options using traditional and technology-based learning
methods.
Change Management OverviewUnderstand key principles, systematic
framework, and tools for an effective change. Elements of the
overview include stakeholders; culture; values; HR target model;
future vision; stakeholder model; organizational design; manpower
and succession planning.
Change StrategyDevelop a strategic change plan that includes
both risks and durability. Elements of change strategy include a
seven-element grid for planning; stakeholder assessments; inquiry
and feedback sessions and preliminary communications.
The Change PlanUnderstand the blending of change elements into
an overall strategic plan. Elements of the change plan include
tactics by phase; by stakeholder; change communications, and
project plan vs. change plan.
Change AssessmentUnderstand how a proposed change will impact an
organization, and how to create an approach to achieve the vision.
Elements of change assessment include the change management
measurement model; translating the change into phases; and 3 x 3
change risk assessment.
Change Planning and CommunicationDevelopment of a sample
tactical change plan that is easy to understand by all
stakeholders. Elements of change planning include communication and
engagement planning; project plan vs. change plan; and integration
with day-to-day business.
Change LeadershipUnderstand that leaders will anticipate the
emotional changes of stakeholders. Determine the support they will
require. Elements of leaders in change include executive coaching
before, during, and after; emotional intelligence Meyers Briggs,
DISC, and Seven Points; Performance Dip and Zero-Sum Game.
Sustaining the ChangeValidate that a change implementation plan
is geared for sustainability. Sustaining the change includes
measures and elements; survey and feedback techniques, and the
change management model.
Individual Personalities:Whole Brain TheoryWhole Brain Theory
and the Benziger Model; thinking styles and the natural giftedness
of each individual; falsifying type: personal and societal costs;
and the four specialized functions of the brain.
20 21
UNIT ONE SEPTEMBER 28 OCTOBER 2, 2015
HR MANAGEMENT FOR OIL AND GAS MANAGERS AND SUPERVISORS
08
learn more or register for programs at www.ihrdc.com
FULL PROGRAM DATES: SEPTEMBER 28 OCTOBER 9, 2015
UNIT TWO OCTOBER 5 9, 2015
CHANGE MANAGEMENT AND COMMUNICATION
Republic of Nicola
Atlantic Ocean
AFRICA
This program is a must for all HR practitioners that
would like to grow in this profession. 2014 Participant
-
PETROLEUM AGREEMENTS BUSINESS GAME: GANDA
The workshop setting is the Republic of Ganda, a small country
located in East Africa across the border from new oil discoveries
in Uganda. Your company wishes to explore for oil and gas in Ganda
and has approached the government to negotiate one or more
exploration agreements, including a Concession Agreement and/or a
Production Sharing Contract. Another company has expressed an
interest in participating with you in the ventures. Your team is to
analyze the opportunities and select the one it finds most
appealing. You must then explore, develop, and produce the
discovered hydrocarbons and make key market decisions. Your major
responsibilities are to review all legal documents beginning with
the negotiation of the host country agreement and ending with the
crude oil and natural gas sales agreements. You will manage field
production through its 20-year lifecycle.
WORKSHOP SESSIONS INCLUDE:
n Review of exploration opportunity, preparations
for the first meeting with the government
n Review of the fiscal provisions of the Ganda exploration
agreements and selection of the one that you wish to
negotiate
n Economic analysis of the fiscal term options of
the Ganda exploration agreement
n Negotiation of the seismic and drilling agreements
n Review of a typical drilling agreement
n Negotiation of oil lifting, crude oil sales, and
transportation agreements
n Review of oil sales agreement
n Exploration and reserves estimation
n Fulfilling government regulations
WHO SHOULD ATTENDThe program is most beneficial to energy
industry professionals who are currently working as mid-level
managers, administrators, technical, or government personnel. It is
especially useful to individuals who routinely interact with
lawyers in administering contracts, or who work with lawyers on
business teams or in a negotiating setting. Young lawyers who have
recently entered the petroleum business may also find this program
useful.
INSTRUCTORSDavid A. T. Donohue, PhD, JDErhan Aslan, PhDCharles
Brankman, PhDY. Serdar Dogulu, PhDJohn B. (Jack) King, MBASkip
Maryan, JD
Introduction to the Legal Process, the Petroleum Lawyer, and
Basic Principles of International Petroleum LawIntroductionpurpose
of commercial law (predictability, control of behavior); how laws
are organized: civil law, common law, topical laws (e.g.
environmental law, criminal law) and regulations; how laws work
(enforceability); difference between a law question and a fact
question; method of legal analysis (how lawyers are trained to
approach problems). Lawyershow the law profession is organized (by
employer and specialty); lawyers inside petroleum companies;
lawyers outside petroleum companies (law firms and government
lawyers). International petroleum law basic principlessovereign
ownership; rule of capture; sanctity of contract.
Legal Considerations When Entering a New CountryHow to use a
lawyerfatal flaw analysis; universal common issues (authority,
institutional risks, e.g. dispute mechanisms generally), local law,
treaties (how can they help or hurt); four selected common issues
(export rights, banking and currency conversion, structure of
foreign investment, and environmental laws); example: Bilateral
Investment Treaty.
Host Country Agreements: Legal Structure and Fiscal
TermsOverviewproduction sharing; tax and royalty; service contract;
hybrid. Special problems contracting with a governmentauthority;
police power and expropriation; unilateral changes (creeping
expropriation); sovereign immunity; stability clauses.
Standard Joint Interest Petroleum Agreements: Joint Venture and
Joint Operating AgreementsWhat they are and how they work; outline
of provisions; the most important issues including promises made to
the government, discovery vs. commercial discovery, standard of
performance, project governance (plans, budgets, meetings, voting,
disagreements, transfers, withdrawal, disputes, basic accounting).
Unitization: concept and five major issues to negotiate.
Principles and Applications of Contract Law and Petroleum
Service AgreementsOffersa promise; how offers are made; bid
solicitations (RFPs); terms of an offer. Acceptancehow acceptance
is made; acceptance varying terms; cultural and language problems
in international contracting. Written contractswhy writing is
important (frauds, parole evidence rule); examination of important
clauses (consideration, capacity to contract, entire agreement,
changes, waiver). Oil and gas industry examples: Petroleum Service
Agreements.
Forming Business Organizations: Joint Ventures,
PartnershipsThree Modelscorporation; partnership; unincorporated
joint venture. Taxationpermanent establishments; double taxation;
tax treaties; use of SPVs (tax deferrals and sales). Three
structures comparedliability; taxation; operational considerations;
acquiring and divesting interests in a business. Oil and gas
industry examples.
Agency, Products, and Liability Law: Subcontractors, Suppliers,
Warranties, Indemnity, and InsuranceTort lawduty to others; the
concept of negligence; vicarious liability (acts of an agent);
damages (actual, consequential, punitive). Warrantiespromises of
quality or performance; expressed and implied warranties;
disclaimers. Indemnityrisk sharing inside the contract; knock for
knock indemnities; no fault provisions; enforceability.
Insurancerisk sharing outside the contract; who is insured; primary
insurance and contribution; subrogation.
Drilling Contracts: Management of Problems When Drilling a
WellThe drilling contracta review of offshore international
drilling contract terms with discussion related to: liability;
damages; warranties and disclaimers; indemnity; insurance. Drilling
and the environmentinternational corporate responsibility;
environmental standards and lending; review and discussion of an
environmental law in host government contracts and in the joint
operating agreement; abandonment of operations.
Oil Lifting, Sales, and Hedging AgreementsLifting
Arrangementsthe terminal; quality bank contracts and how they work;
lifting schedule preparation; schedule implementation; failure to
schedule or lift. Oil and product salesUCC sales law; UN sales law;
sales law comparison of key terms; typical sales arrangement;
standby letters of credit. Hedging agreements: NYMEX standard
agreement.
Transportation: Crude Pipelines and ShipsPipeline law
issuesright of way and condemnation; regulated vs. unregulated;
tariff setting; access; capacity reservations; curtailments.
Shipping law issuesadmiralty law principles; vessel charters
(rights of owners, rights of charterer, third party operators);
bills of lading (negotiable and non-negotiable).
Natural Gas and LNG Sales and Transportation AgreementsNatural
gas law issues: physical and financial agreements; typical terms
and conditions; natural gas pricing and major trading hubs; special
considerations for LNG; natural gas pipeline contract terms; terms
and conditions of standard forms.
Current Legal IssuesDiscussion of such topics as