Finance and accounting is one of the core management functions in all organizations. The maximisation of financial resources may be the key factor for success. However, in the oil & gas industry, the rapid changes in geopolitical and economic climate has brought forth a growing need for change in regulatory framework regarding environmental, governance and reporting issues. It is crucial that leaders in the oil & gas industry be equipped with wide-ranging knowledge in finance & accounting to achieve strategic planning & decision-making. This training will benefit your organization by giving delegates greater knowledge on best practices to make better decisions in oil & gas finance and help their organization reach new heights.

1. MASTERCLASS:
ADVANCED &
EXPERT STRATEGIES
IN OIL & GAS
FINANCE AND
ACCOUNTING
05 - 09 MARCH 2012
FINANCE HOTEL FUERTE MARBELLA Limited Seatsk
SERIES Boo
Available. Today!
SPAIN ats
Your Se
WHY YOU CANNOT MISS THIS EVENT YOUR INT
YOUR INTERNATIONAL
Finance and accounting is one of the core management functions in all COURSE FACILITATOR
organizations. The maximisation of financial resources may be the key factor for Betty J. Simkins, Ph.D.
success. However, in the challenging oil & gas industry, the rapid changes in
geopolitical and economic climate has brought forth a growing need for change in Professor of Finance
regulatory framework regarding environmental, governance and reporting issues. Oklahoma State University
It is crucial that leaders in the oil & gas industry be equipped with wide-ranging Betty J. Simkins, Ph.D., is the Professor of Finance in the
knowledge in finance & accounting to achieve strategic planning & decision-making. Department of Finance at Oklahoma State University’s
This will give them a boost in achieving long term success. Spears School of Business where she teaches, corporate
There is a need for the demonstration of risk identification and financial finance, energy finance and risk management, advanced
financial management, corporate valuation, and case
management to be grounded in timely, accurate forecasts and performance data. studies in finance. She frequently presents her research at
These have caused the industry to be one of world most challenging and complex leading academic conferences around the world. Prior to
business environment. entering academia, she worked in the energy industry for
ConocoPhillips, Williams, Inc., and Williams Pipeline
Company, among others.
“Excellent coverage of financial forecasting, risk
analysis, and planning.” Dr. Simkins has also worked as a consultant or advisor for
Wells Fargo, ConocoPhillips, Deloitte Touche, Morgan
Stanley, Conference Board of Canada, the National
- ConocoPhillips Association of Security Dealers (NASD), Southwest Airlines
Company, Williams, Inc, and EKF (Eksport Kredit Fonden,
Denmark). She is frequently interviewed and quoted in
Key reasons why your organization would benefit from this course:
the press regarding her research and expertise on energy
Establish crucial insights of the oil & gas industry’s current and future prospect finance, including such publications as the Wall Street
Journal, the Chicago Tribune, and the Houston Chronicle.
Improve key analytical skills and techniques in oil and gas capital budgeting Her research was recently used in testimony to the U.S.
and project evaluation including risk analysis for better decision-making and Senate Banking Committee.
strategic planning She has over 50 publications in academic & practitioner
journals and has won awards for her risk management
Review the critical issues related to International Financial Reporting research. She has a 2012 forthcoming book, “Energy
Standards (IFRS) and International Accounting Standards (IAS) and its Finance and Economics: Analysis and Valuation, Risk
application in oil & gas companies Management, and the Future of Energy”, which will be
published by Wiley. Her 2010 book, “Enterprise Risk
Understand the most important issues related to valuation of oil & gas prices & Management: Today’s Leading Research and Best
properties under current and proposed international accounting standards Practices for Tomorrow’s Executives”, is a Wiley top seller.
Her publications rank her in the top 5 percent of finance
Manage and mitigate risks effectively researchers. In addition, Dr. Simkins has won a number of
teaching awards including the highest at OSU, the
Gain knowledge on derivatives and hedging due to the complexity of the Regents Distinguished Teaching Award. Her current
industry research and consulting focuses on the oil and natural gas
industries, energy finance, enterprise risk management,
and energy risk management.
“Great course that gives me the good ideas in financial She currently serves on the Board of Directors for the
accounting strategies which will help me in my work.” Financial Management Association, as co-editor of the
Journal of Applied Finance, as Editor of FMA Online, as
past president of the Eastern Finance Association, and on
- Ministry of Oil & Gas Oman the editorial boards of several prestigious finance journals.
“Most teachers are passionate about what
they teach: however, Dr. Simkins has raised
the bar for her peers by bringing the real
world into the classroom.”
- Ernst & Young, Inc.
© 360 BSI (M) Sdn Bhd (833835-X), Level 8 Pavilion KL, 168 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia. 1

2. COURSE
CONTENT
ALL SESSIONS WILL BE
THEORY AND PRACTICAL BASED
Participants should bring their calculators to all 5 days of the course.
It is highly recommended that participants also bring laptops on
Days 2, 3 and 4 for the practical exercises.
DAY1 BUDGETING AND FORECASTING STRATEGIES
IN THE OIL AND GAS INDUSTRY
Session One: DAY2
Laying the foundation -- Global energy outlook, supply and demand
balance brought about by a rapidly changing world OPTIMIZING BUDGET MODELS
Setting the stage for finance and accounting strategies for oil & gas companies
Global energy outlook AND CAPITAL INVESTMENT
Energy supply and demand issues
Current views on energy price projects
ANALYSIS
Human capital shortages, unproven technology & unknown geology Session One:
Future trends of oil and gas Analysis of international oil companies financial
statements – Part 2
Session Two: Delegates will analyze the financial statements of
How oil and gas companies differ from other industries and key issues in oil leading international oil companies.
and gas accounting and finance - Case studies and Excel applications
To understand the financial prospects of an oil and gas company, one must - Bloomberg applications
understand how they differ from other industries and key issues related to reporting.
Session Two:
Special accounting treatment for Oil and Gas companies Competitive benchmarking
Analyzing the different accounting methods and financial statements This session will cover the critical topic of competitive
Determining the proper classification of oil and gas costs: capitalize, expense, benchmarking. What is this?
exploration costs, development costs, production costs
Revenue recognition: when is it revenue and when it is not? Competitive benchmarking – an understanding of
Fair value accounting issues how well a company is doing relative to other
Industry accounting issues companies. These are performed to identify
individual investment, institutional investment,
Session Three: employment, benchmarking, and Merger and
Acquisition potential.
Observing the role of International Accounting Standards (IAS) and future
issues as they apply to Oil and Gas companies When companies compare themselves to their peers,
Overview of critical issues related to international petroleum accounting they usually have a number of significant advantages
Observing the role of International Accounting Standards (IAS) in the future of over outsiders.
financial statements for oil and gas companies
- Where they came from Session Three:
- What does it mean to companies now and in the future Capital budgeting and risk analysis in the Oil and
Value chain and significant IAS accounting issues Gas industry
Upstream Oil and Gas specific differences between IAS and U.S. GAAP Valuation of Oil and Gas assets is a critical and
challenging process. The uncertainty of production,
Session Four: prices, capital costs and construction delays, among
Analysis of international oil companies financial statements – Part 1 other factors, makes it difficult to value projects. In
this session, leading analytical skills and techniques
This two-part session will continue with topics covered in the prior session on
used in Excel will be discussed and illustrated using
IAS by applying them to financial statement analysis. real case studies on financial forecasting and analysis.
Delegates will learn 10 important factors in reading and analyzing the financial Recap of traditional capital budgeting methods
statements of international oil companies. The main focus will be on learning - Net present value (NPV), internal rate of return (IRR),
how to analyze the company’s success in exploring and producing oil and gas modified IRR, payback period and discounted
reserves and understanding the concept of competitive benchmarking of the payback period
company against other energy companies.
Advanced analytical skills, techniques, and challenges
This session is helpful in gaining knowledge as a business professional working in oil and gas capital budgeting including:
in the energy industry, a potential investor or lender in the oil and gas industry - Oil and gas production, oil and gas prices, cost of
and an individual seeking employment in this industry. Delegates will analyze capital, construction costs, and startup delay
the financial statements of a leading international oil company.
Session Four:
Case study applications and open discussion of
Topics covered include: crucial issues
Energy ratios specific to oil and gas companies Participants will analyze case studies of actual
Reading oil and gas reserve disclosures international firms operating in the oil and gas
Analyzing production replacement and reserve replacement industry to further explore issues covered in the
Analyzing finding costs and reserve replacement costs sessions covered today. Attendees will also have the
Reserve life index opportunity to discuss crucial issues facing them with
Key profitability indicators delegates in attendance. Open discussion will follow
with suggestions and recommendations. This is an
excellent opportunity to interact in a stimulating
“Very beneficial course.” group setting with other participants.
- PTT Exploration & Production, Bangkok, Thailand
2

3. COURSE
CONTENT
ALL SESSIONS WILL BE
THEORY AND PRACTICAL BASED
DAY3 ADVANCED CAPITAL BUDGETING AND RISK
ANALYSIS IN THE OIL & GAS INDUSTRY
Session One:
Advanced capital budgeting and risk analysis in the Oil and Gas industry
Would you like to master financial forecasting and analysis? If so, this session is
a “must” in gaining the cutting-edge skills necessary for sophisticated financial
analysis and modeling of oil and gas projects. In this session, Monte Carlo DAY4
simulation will be used to model uncertainty for key value drivers of large oil
and gas projects. Monte Carlo simulation is a powerful tool that can help
evaluate what can happen to an investment’s future cash flows and summarize
ADVANCED TOPICS IN
the possibilities in a probability distribution. This is particularly helpful in oil VALUATION OF OIL AND GAS
and gas project analysis since the outcomes from large investment projects are
often the result of the interaction of a number of interrelated factors (or value
COMPANIES
drivers) that are highly uncertain. Session One:
Risk analysis of oil and gas projects using Excel Valuation of Oil and Gas companies using relative
- Sensitivity analysis, sensitivity charts, and scenario analysis valuation using market comparables – Part 1
Introduction to relative valuation for oil and gas
Advanced risk analysis using Monte Carlo simulation companies
- Distribution fitting and correlation assumptions Valuation of oil and gas companies using the Method
- 5 basic rules of thumb in choosing probability distributions of Comparables
- Three popular probability distributions for use in simulation models Valuing an IPO
- Displaying and understanding output -- Tornado Charts, etc Most commonly used valuation ratios (multiples) and
DCF valuation techniques for oil and gas companies
Modeling energy prices in capital budgeting risk analysis Enterprise valuation using EBITDA and EBITDX
- Techniques and challenges in modeling energy prices multiples
- Modeling energy prices using mean reverting processes incorporating Poisson EBITDA and firm free cash flow
jumps Why use EBITDA/EBITDX multiples rather than cash
flow multiples?
Case studies and Excel applications
Session Two:
Session Two: Valuation of Oil and Gas companies using relative
Case study applications and open discussion of crucial issues related to valuation using market comparables – Part 2
advanced capital budgeting and risk analysis Valuing a privately held firm
Delegates will analyze case studies of actual international and Middle Eastern firms The effect of risk and growth potential on valuation
operating in the oil and gas industry to further explore issues covered in the sessions multiples
covered today. Attendees will also have the opportunity to discuss crucial issues Adjusting the multiple valuation metric for the
facing them with delegates in attendance. Open discussion will follow with private oil and gas firm discount
suggestions and recommendations. This is an excellent opportunity to interact in a Equity valuation of an oil and gas firm using the
stimulating group setting with other participants. price-earnings (PE) multiple
Valuing a division using the PE method – example for
Session Three: Exxon Mobil’s Chemical Division
Current issues about derivatives and risk management in the Oil and Gas Case study applications
industry
Oil and gas companies are facing many financial risks currently and risk Session Three:
management is a critical issue for these firms. Risk management encompasses Case Study: Valuation of ExxonMobil’s Acquisition
the identification and assessment of the risks that materially affect company of XTO Energy using Relative Valuation
value and enterprise risk management addresses the implementation of a
company-wide strategy to manage those risks. Session Four:
Open discussion of crucial issues from Days 1
In this session, participants will learn about the following topics: through 4
- What do we mean by risk management and why do firms manage risks? In this final session of day 4, delegates will have the
- How hedging can increase firm value opportunity to further explore issues covered in the
- Introduction to terminology and instruments used in the energy derivatives course. Attendees can choose cases to analyze that
markets most closely match their areas of interest and will
- Energy price volatility, types of derivative markets have the opportunity to work in a stimulating group
- Lessons from hedging mistakes: Recent hedging disasters setting with other participants. Delegates can share
experiences, make suggestions, and query the group
for their insights on topics of high concern in the oil
Session Four: and gas industry. This is an excellent opportunity to
Advanced topics in hedging and risk management interact with other delegates in a stimulating group
Do you need more knowledge or want to learn more about derivatives and setting with other participants.
hedging in this complex industry? If the answer is yes, this session is a must for
you.
Topics covered include:
- Hedging, basis risk, and factors affecting basis
- Petroleum and natural gas price risks and risk management strategies “… her discussion, in-depth knowledge, and
- Options (calls, puts, collars, floors, caps) cases used were very effective. Great
- Energy swaps course!”
- Value-at-Risk (VAR) and Cashflow-at-Risk (CAR)
- The Greeks (delta, vega, theta, rho, and gamma) and what they mean - Reliance Industries Limited (Oil & Gas, India)
- Energy trading
3

4. COURSE
CONTENT
DAY5 ADVANCED TOPICS IN INTERNATIONAL WHY THIS EVENT
ACCOUNTING STANDARDS AND US GAAP This workshop gives delegates crucial insights on
the oil & gas industry’s current and future
FOR OIL AND GAS COMPANIES prospects.
Session One: Accounting for Hedging Under IFRS – IAS 39 and US GAAP Participants will develop key analytical skills &
Financial Accounting Standards (FAS) 133 techniques in oil & gas capital budgeting, project
What are the current accounting standards as they relate to risk management? evaluation, risk analysis & strategic planning.
In this session, we will discuss these very issues as they relate to US GAAP and This course will also review the critical issues
IAS. related to IFRS and IAS and its application to the
Topics included cover: oil & gas industry. Vital knowledge of derivatives
- How should a company account to its shareholders for the derivatives it and hedging will also assist in risk management
holds? & mitigation.
- Example of a speculating position and hedging position The trainer, through years of experience in
- FAS 133 and IAS 39 (fair value hedge, cash flow hedge, speculative finance and the oil & gas industry, will conduct a
transaction) including definition of hedges, accounting of hedges, and dynamic and resourceful training that you won’t
criteria for hedging want to miss!
- Measuring hedge effectiveness under FAS 133 and IAS 39.
- How should a company account to its shareholders for the derivatives it
The combination of interactive presentations,
holds?
hands-on exercises and open discussion groups
along with real case studies, ensures you will
Case study illustrations on risk management applications and mistakes in obtain maximum value from attending.
the Oil and Gas industry
Session Two: Case study applications in hedging and risk management
for oil and gas and accounting applications
Session Three: Accounting for production costs and company evaluation
Production costs refer to the costs incurred in the production phase. Typically
these costs include the cost of producing or lifting the oil and gas to the
surface, field treatment, field transportation, gathering, and storage. In this
session, accounting for production costs will be covered.
Topics covered include:
- Typical production costs
- Allocation of production costs
- Crude oil production
- Gas production
- Performance measurement and evaluation
- Revenue determination in joint operations
Case examples
Session Four: Course wrap-up
In this final session, delegates will have the opportunity to further explore WHO SHOULD ATTEND
issues covered in the course. Finance Managers and Directors
Finance Controllers
Accounting Managers
Public Accountants & Auditors
Financial & Business Analysts
Staff Accountants in a Leadership Role
Key personnel in the oil & gas industry
“That is what learning is. You suddenly understand
something you've understood all your life, but in a new way.” COURSE SCHEDULE
8.00 Registration & Coffee/Tea
- Doris Lessing 8.30 Workshop commences
10.30 - 11.00 Morning coffee/tea
12.30 - 13.30 Lunch
15.00 - 15.30 Afternoon coffee/tea
16.30 End of day
4

5. MASTERCLASS:
ADVANCED & REGISTRATION FORM
EXPERT STRATEGIES
IN OIL & GAS Fax: +603 9205 7788
FINANCE AND
ACCOUNTING Tel: +603 9205 7778
Mobile: +6016 3326 360
05 - 09 MARCH 2012 Email: kris@360bsi.com
HOTEL FUERTE MARBELLA
SPAIN
DELEGATES IN-HOUSE TRAINING
1 Name : 360 BSI is passionate about providing strategic technical
programs and high potential training solutions across the
Name on tag : region to build personal competencies and organizational
Job Title : capability.
You will receive practical training from a professionally
Email : qualified educator with over twenty years of teaching and
Mobile training experience.
:
Please feel free to mix-and-match topics from the areas listed
2 Name : below to get the right training content for your staff. Other
topics may be available upon request.
Name on tag :
OTHER PUBLIC COURSES
Job Title : o
360 Train the Trainer
Email : Finance & Capital Investment Analysis
Root Cause Analysis
Mobile : Business Proposal & Report Writing
Record & Document Management
3 Name :
Business Communication & Presentation Skills
Name on tag : Resilience - Thriving in Challenging Times
Job Title :
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Email : For Room Reservation, contact us for our corporate rates.
Mobile : Hotel Fuerte Marbella
Avda. El Fuerte s/n. 29602. Marbella (Málaga). España
Telephone: +34 95 286 15 00
AUTHORIZATION
(This form is invalid without a signature) General Information:
Name : 1 Closing date for registration is 27th February 2012.
2 The fees cover lunch, tea breaks, materials and certificate.
Job Title : 3 Official confirmation will be sent, once registration has
Email : been received.
4 Participants will need to arrange their own accommodation.
5 Attire: Smart Casual
Tel : ( )
Cancellations/Substitutions
Organization :
Substitutions are welcome at any time. Please notify us at
Address : least 2 working days prior to the event. All cancellations will
carry a 10% cancellation fee, once a registration form is
received. All cancellations must be in writing by fax or email
at least 2 weeks before the event date. Cancellations with
less than 2 weeks prior to the event date carry a 100% liability.
However, course materials will still be couriered to you.
Signature : Date: / /
Thank you for your registration!
COURSE FEES (please tick as appropriate) PAYMENT DETAILS
Payment is required within 5 days upon receipt of
USD 4,495 per delegate the invoice.
USD 4,200 per delegate - register before 15-DEC-2011
Bank transfer:
360 INTERNATIONAL LIMITED
Standard Chartered Bank
P.O.Box – 999 Al Fardan Building,
Al Mankhool Area, Bur Dubai, Dubai, U.A.E
The fee does not include any taxes (withholding or otherwise). In case of any taxes applicable Account No: 02-2077311-01 USD
the client has to ensure that the taxes are paid on top of the investment fee paid for the course.
Compliance with the local tax laws is the responsibility of the client. Swift No: SCBLAEADXXX
* Save up to 50% for In-house Training program All payments must be received prior to the event date
© 360 BSI (M) Sdn Bhd (833835-X), Level 8 Pavilion KL, 168 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia. www.360bsi.com 5