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Portfolio management of oil and gas assets


Book Online

2018 Course Dates:

Cost per delegate

EI member

  • £2350 + VAT 

Non EI member

  • £2550 + VAT

A 10% early-bird discount is available on all courses booked two or more months in advance. 

Contact

For more details on any of the training courses please contact Marjan Azodi in the EI training team on:

T: +44 (0)20 7467 7155

E: mazodi@energyinst.org

Delivered in Partnership With:

DWA Energy Limited

Risk management, stochastic modelling and optimization are essential requirements for upstream oil and gas decision making. The information provided by modern portfolio modelling techniques and tools also leads to improved insight and understanding of the potential contributions assets can make to specific portfolio combinations. A quantified corporate strategy, with clearly defined goals and constraints, integrated with portfolio models leads to more robust upstream portfolio decisions.

This course includes presentations, exercises and case studies focused on the upstream oil and gas sector. It also addresses the involvement of midstream and downstream assets and other non-petroleum energy assets in the context of achieving balanced portfolios. The materials presented are designed to provide delegates with knowledge of portfolio management issues and modelling techniques and how they are applied.

 

Who should attend?

This course is designed for a multi-disciplined professional audience drawn from portfolio, economic analysis, strategic planning, corporate, fiscal, financial and business development divisions of oil and gas companies, institutions financing such companies, and analysts of the oil and gas sector. The skills and industry insight provided by the course will be of value to corporate, portfolio and asset-based decision-makers.

 

Course Outline

Day One – E&P portfolio characterization considerations

  • Benefits of a portfolio approach to oil & gas valuations and decision making
  • Key criteria to measure performance of upstream asset portfolios 
  • Strategic goals and constraints are essential for portfolio decision making
  • Advantages of balanced and diversified upstream asset portfolios
  • Budget constraints and influences on portfolio capital allocation decisions
  • Applying the principles of financial asset portfolio theory to E&P assets
  • Distinguishing asset risk and portfolio risk
  • Efficient frontiers and feasible envelopes aid portfolio selection
  • Correlation among E&P assets and its influence on portfolio risk

 

Day Two – Portfolio modelling and optimization

  • Developing a portfolio model in combination with a quantified strategy
  • Factoring in asset limitations and synergies
  • Expected monetary value approach to quantify upstream asset risk
  • Competitive bidding for upstream assets
  • Considering an asset portfolio independently of corporate constraints
  • Recognising the influence of corporate financial and strategic drivers
  • Different methods to quantify portfolio uncertainty and downside risk
  • Benefits of stochastic (probabilistic) portfolio valuation models  
  • Probability of achieving key strategic and corporate targets
  • Risked portfolio simulation models: inputs and outputs
  • Portfolio optimization: Linear, non-linear and evolutionary algorithms
  • Applying optimizers to simulation model outputs
  • Enhancing portfolio understanding and decision making using optimizers
  • Portfolio modelling software considerations

 

Day Three – Organizational and business development factors

  • Organisational issues associated with portfolio management teams
  • Human factors and constraints to portfolio model implementation 
  • Utility factors, preferences and biases of portfolio decision makers
  • Enterprise risk management constraints to portfolio management
  • Establishing short-, medium- and long-term planning horizons
  • Recognizing the value of optionality associated with certain assets
  • Influences of long-term and infrastructure assets on portfolio risk
  • Asset acquisitions and divestments evaluated with a portfolio model
  • Performing gap analysis with the aid of a portfolio model
  • Using a portfolio model to assess strategic options and quantify goals
  • Integrating global and long-term considerations with portfolio selection