Course Detail

OIL AND GAS PROJECT FINANCING Dubai Duration: 1 Week/s

Course Information

  • Course Price $5950
  • Location Dubai Courses
  • Course Code OGPFD
  • Course Date 29 Jul - 2 Aug 2024

Course Objectives

This highly practical course has been specifically tailored to the needs of professionals operating in the oil and gas, banking, finance, legal and accounting industries who wish to expand dramatically and extend their knowledge of limited-recourse financing techniques used in the various branches of the oil and gas industry. The remarkable growth of the worldwide energy sector presents unique financing challenges and pressures for today’s practitioners working in the oil and gas sector and financial industry.

Who Should Attend?
This course is intended for Engineers, Project & Process Managers, Technical Managers, Team Leaders, Finance Managers & Professionals.

Course Overview

Limited Recourse Financings

  • The principle features of a project financing

  • the due diligences required

  • the choice of entity

  • the role of contract

  • the role of the project cashflow model

  • the rationale for selecting project finance


  • The Particular Financing Issues to be Confronted in Energy Projects

  • the challenges of upstream oil and gas

  • reserves estimation
    extraction dynamics
    development finance
    reserve-based lending
    determining the borrowing base for a basket
    perfection of security
    abandonment
  • the challenges of Pipelines

  • throughput agreements
    rights of way
    social and security implications
  • the challenges of LNG

  • the traditional contractual lock-in structure
    the effect of the emergence of a spot market
    vertical integration
    the cycle
  • the challenges of Petrochemicals

  • feedstock
    agency and licensing

    Legal Issues

  • alternative dispute resolution procedures

  • reversal of the plaintiff / defendant positions through contract structuring

  • ADR conditions precedent for financing


  • Pre-Completion Risks

  • liquidated damages

  • policing the liquidated damages – performance bonds and retentions

  • fixed price, lump sum, liquidity

  • the implication of change orders, cost overruns

  • turnkey EPC structures

  • standard form contracts

  • completion guarantees, refinancing risk

  • the assigned insurances relevant as lender security

  • completion testing, retentions, latent defects and warranties


  • Offtake Agreements

  • classification of different cashflow profiles within the energy sector

  • the security implications of take-or-pay

  • availability risk versus market risk

  • foreign exchange issues

  • hidden recourse


  • Financing Structures

  • risk and its relationship to cashflow

  • the central importance of FCF

  • the origins of cashflow volatility – the dynamics of project cashflow

  • LLCR and ADSCR covenants

  • when to apply a cash sweep

  • providing liquidity ‘suspension’ for the special purpose vehicle

  • different structures to control and capture the cashflow- sector by sector

  • cashflow waterfall

  • the different types of control accounts

  • the syndication process

  • tailoring the structure to the project cashflow

  • consequences of default


  • The Role of the Model in Project Finance

  • the cashflow adequacy and the cashflow volatility

  • the ‘problem’ with predictive modelling

  • purpose of model – initial
  • feasibility, financing choice, post-completion monitoring, etc
  • the layout and flow of the model

  • the importance of the drivers and the profiles

  • treatment of currency issues and escalation

  • interface of risk quantification and risk allocation

  • methods for processing sensitivities, break-even analysis, and scenarios



  • Model Reviewing

  • procedures on receiving a model

  • the use of audit software

  • model flow

  • building a trace diagram


  • Capital Markets

  • Rule 144A bond financings – origins and implications

  • the bond rating and its importance

  • the effect and implications of the sovereign debt rating

  • bond financing in domestic infrastructure projects

  • enhancing the credit and the rating

  • the advantages of bond financing compared to bank syndication


  • The Analysis by Project Sponsors

  • how investment appraisal differs between normal investment and project-financed investment

  • frequent encountered errors in calculating the rate of return

  • project IRR contrasted with the total return to sponsors

  • the implementation of the return calculation in excel

  • the contractual negotiation with financiers – what clauses impact the equity IRR


  • Political Risk

  • insurers of political risk and the forms of cover available

  • the various roles that can be performed by export credit agencies

  • typical lending structures of ECAs

  • multilaterals and the typical lending structures encountered

  • Summary of the Essential Ingredients of Oil & Gas Project Financing


  • Learning Goals

    By the end of the training, participants will be able to:
  • Outline the specific nature and financial implications of Oil, Gas, and energy Projects

  • Recommend methods of financing Oil, Gas and energy Projects

  • Calculate the costs of finance

  • Undertake Financial Evaluation of Projects to determine their Financial & Economic Viability and sustainability

  • Recommend ways to improve the financial position of the company