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Euromoney Learning Solutions

Financing Natural Resources: Oil Gas & Mining Projects

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Next dates

Jul 15—16
2 days
London, United Kingdom
GBP 2795 ≈USD 3628
GBP 1397 per day

Description

Get unique skills in the natural resource sectors - oil, gas and mining

This course represents module 3 of the Project Finance Academy.

Building on a foundation established in the first portion of the program Module 3 introduces elements unique to projects in the natural resource sectors: oil, gas and mining. Discussion and cases cover upstream oil and gas delivery as well as green-field and later phase mining projects. Approaches to equipment finance are highlighted, including Islamic alternatives. Effective applications of interest rate, currency and commodity derivatives are described.

Four Workshops That Can Be Booked Together or Separately:

  • Module 1: Advanced Project Finance Workshop (4days)
  • Module 2: Cashflow Modelling (1 Day)
  • Module 3: Financing Natural Resources: Oil, Gas and Mining Projects (2 Days)
  • Module 4: Infrastructure Finance and PPP (2 Days)

Agenda

Day 1

Themes: Natural Resources Projects

Upstream, Midstream and Downstream Oil and Gas

  • Structure: Upstream, Midstream and Downstream
  • Hydrocarbon Basics: Geology, Reserves
  • Supply and Consumption
  • Oil Production: Process Depletion and Enhanced Recovery
  • Financing Structures: Balance Sheet vs. Limited Recourse
    • Field Development and Platform Types
    • Production Facilities
    • Building and Financing Pipelines
    • Refineries and Petrochemical Plants
    • LNG Facilities

Allocating Risk

  • Technology and Construction/Completion
  • Reservoir/Reserve Risks
  • Feedstock Risk
  • Sales and Off-take
  • Operation and Maintenance
  • Abandonment/Decommissioning
  • Environmental/Regulatory Issues
  • Country/Political Risk

Logistics and Transportation Financing

  • Logistics: Pipelines, Shipping, and Storage
  • Types of Tankers
  • AFRA Classes (Average Freight Weight Assessment)
  • ULCC to Tanker Lightering

Islamic Finance

  • Definitions, Principles, and Authoritative Sources
  • Structures: Murabaha, Istisna and Ijara
  • Examples of Petrochemical and Other Transactions
  • Case Study: Financing an Oil Rig
  • Participants will break into small groups to prepare a case study concerned with equipment financing. A computer simulation will be used to model possible outcomes. Groups will present their solutions.

Day 2

Themes: Reserve and Off-take Evaluation; Mining Projects; Risk-Management with Derivatives

Stages in Financing Natural Resources Projects

  • Exploration/ Geology/Drilling/Reserve Estimation
  • Reserve-based lending and Borrowing bases
  • Mezzanine Funding
  • Oil and Gas Reserve Categories (P1, P2, P3)
  • Common Measures: (Loan Life Cover Ratio (LLCR), Project Life Cover Ratio (PLCR), Reserve Tail
  • Case Study: Financing a Condensate Field Development Project
  • Evaluating the security package and forecast cash flows for a condensate field. Structuring Approaches. Finding funding.

Price Volatility and Risk Management with Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities
  • Using interest rate and currency swaps to manage risk in projects
  • Options: caps, floors and collars

Mining Transaction Considerations

  • Special Issues
  • Single Asset Projects and Asset Depletion
  • Off-take Arrangements
  • Construction Issues and Engineering
  • Mine Operating Risk
  • Environmental and Country Risk

Mining Case Study

Structuring a sales contract to support project financing of industrial minerals project. 



Self-test

Who should attend

  • Bankers/Investment Bankers
  • Project Finance Modelers
  • Financial Advisors
  • Sponsors/Project Joint Ventures
  • Project Developers
  • Government/PPP Agencies
  • Public Sector Managers
  • Export Credit Agencies
  • Multilateral Agencies

Experts

Ms. Osius designs and delivers executive level training sessions as well as providing consulting services to a wide variety of organizations worldwide. Specializing in international project finance, capital markets, and risk management, she works with corporate investors, private and development ...

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