Course Information
- Course Price
- Location Paris Courses
- Course Code OGPFP
- Course Date 28 Apr - 2 May 2025
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