A 5-day international In-house ‘Business School’ programme* – Increase your commercial and strategic understanding of the oil and gas industry in a practical, intensive 5-day training programme
The global Oil and Gas industry presents a constant stream of challenges for all organisations working within it.
The markets are undergoing major structural change, there is a continual uncertainty and volatility of prices, indecision over integration and the role of the NOCs, as well as the environmental issues brought to the forefront by the continuing BP crisis. The industry faces a challenging and competitive time for resources, opportunities, customers, qualified employees and for capital. In order to operate at the top of the field you need to have current industry know-how combined with exceptional business and management skills. This 5-day practical and intensive programme offers just that in an environment away from your organisation that will allow you the space and time to think strategically, and act commercially.
By attending this programme you will:
The business cases, examples and exercises throughout this programme are based on and built around real-life scenarios that have been specifically developed for this programme. Participants will work in groups throughout the course applying key techniques learnt in Oil and Gas and, on occasion, comparing the results to real-life outcomes in companies using a unique case study developed solely for this programme.
This module will provide an insight into Oil and Gas, both historically and currently, and how their markets remain clearly in the regulatory and policy spotlight. It will also consider the drivers and nature of the structural change which is transforming international oil and gas which will affect the investment and operating environment. The way in which these
changes will shape the development of the industry needs to be addressed in assessing your organizations commercial and strategic options.
Why Oil and Gas matters
Financial management in the oil and gas industry
The Oil and Gas industry is characterized by its high levels of risk investment and the all-too-often time-lag before returns can be generated, if at all. Taking a demystifying and practical approach in this module we analyze the financial fundamentals of the Oil and Gas industry in such a way that you will understand how finance and management accounting departments tackle the main issues involved. You will gain valuable insights into the financial impact you can have on your organization and its profitability.
The Business Model
Financial Terminology and Policies
Key Financial Statements
Key Business Ratios
Review of an IOC’s financial results.
Regulatory and Contractual Systems for Oil and Gas Production
This section will examine the regulatory and contractual structures of the upstream oil and gas industry. The sector is different from most others given the level of government intervention and control even in countries where there is little or no state ownership. The level of production, and the precise work programme under which oil will be produced, is controlled by government.
This section examines how governments implement their policy choices through licensing, production sharing, and other methods. It looks at how investors (and state companies) proceed to allocate costs and benefits under the concession/licence/ production sharing arrangement, and the role of the commercial contracts needed to bring reservoirs into production.
Strategic Issues for IOCS and NOCS
NOCs are becoming the main industry players with their control of over 70 percent of proven oil reserves. At the same time, there is growing concern over the future of the IOCs as they struggle to generate sufficient shareholder value to ensure their survival.
Both have differing management objectives and strategies. This module will consider the strategic issues facing both types of company and also consider their future roles, both individually and collectively.
Oil and Gas organisations face many strategic challenges including what type of organisation to be, where to compete, how to position against competition. However, implementing any strategy successfully requires a careful mix of leadership and management techniques throughout the organisation. Recent cases have highlighted that trade-offs need to be made and choices clearly communicated in all areas, but especially in the key challenges between safety, environmental and profitability issues. Add to that the challenge of working across cultures and different drivers being a leader in this industry becomes complex. This module will enable you think through these issues and to create some action plans for yourself and your real team members.
Negotiation happens all the time, not just around commercial issues. Understanding your habits and choices in negotiation situations will help you to be more effective in building good relationships and creating solid agreements which benefit you, your colleagues, your company, your customers and your suppliers.
This will identify and discuss the key elements determining the international Oil and Gas operating environment in the next 20 years. In particular it will focus on the major structural changes which are taking place in terms of oil demand, supply and pricing as well as environmental drivers. In addition it will address issues arising from the shifts in relative power between the producers and consumers; East and West. What are the implications for your organisation?
This module will run throughout the programme and is the opportunity for participants in small project teams to present a business case to a panel. Individuals will be encouraged to draw on the insight and learning from each of the preceding modules to inform thinking in formulating their business cases. The panel will be invited to listen to the final business case presentations from the project teams, question their thinking and then provide feedback and evaluation.
Sandra Redding is a practising solicitor, holding an LLB (Hons) from the University of Queensland. She is Senior Legal Counsel at RWE Dea UK where she advises on all aspects of the company’s exploration and production business including licensing, joint ventures, development projects, gas transportation and sales, and merger and acquisition activity. She has advised on a wide range of legal issues affecting upstream operations in the UK, Europe and North Africa.
George Fildes FCMA, MBA specialises in financial training and consultancy. With over twenty years experience in general management, George’s experience spans business management, logistics, customer operations and financial management. He has been involved with mature, turnaround and start-up companies. George’s works globally with organizations he has developed a series of tailored business improvement programmes focusing on financial understanding for clients who include: SASOL, BBC, Exel, Thames Water, Portakabin, Calor Gas, Pfizer, Toshiba, 3M and HBOS.
George is a charted management accountant (FCMA) with a Cranfield MBA. He also has a Diploma in Marketing and an accredited finance tutor for the Chartered Institute of Management Accountants (CIMA), Chartered Institute of Marketing (CIM) and Derby University.
Paul Blackhurst BSC, MBA, MCIM is a consultant, speaker, trainer, coach and facilitator. He has worked in four continents in 45 countries and has a track record of designing and delivering successful consulting and development projects for blue-chip clients. Paul has a rare mix of background and education which helps him to combine the hard aspects of strategic choice and analysis with the “softer” aspects of change management, leadership and people management. He has worked successfully with several clients in the Oil and Gas Industry including designing a major leadership programme for BP. Prior to in-house roles with MCE/AMA, Paul worked in a series of executive positions in multinational organisations such as SKF, Milacron and GTE. Paul has a BSc. degree from the University of Birmingham and an MBA from Bradford University. He has also pursued Doctoral studies at Henley Management College. In addition to his academic qualifications, Paul holds an Advanced Diploma in Management Consultancy from Henley Management College, a Diploma in Organisational Development from NTL (USA) and a Diploma in Marketing.
This course qualifies for the following CPD programmes: