This training course is split in two modules:
MODULE I - Natural Gas Physical and Financial Markets
MODULE II - Gas & LNG Markets, Pricing and Contracts
Each modules is structured and can be taken as a stand-alone training course; however, delegates with will maximise their benefits by traking Module 1 and 2 back-to-back as a 2-week training course.
Module 1: Natural Gas Physical and Financial Markets
DAY ONE: A “PERFECT STORM” IN THE ENERGY INDUSTRY
- A brief history of the petroleum industry
- Development of the markets: Crude oil, natural gas, and their products
- The value chain of energy projects
- Oil market as a world market; regional natural gas markets
- Natural gas market and transportation: Pipelines and Liquified Natural Gas (LNG)
- The regional markets of the natural gas and the promise of LNG
- Introduction to economic decision making
DAY TWO: THE NATURAL GAS INDUSTRY: AN OVERVIEW AND MARKET DYNAMICS
- Why has natural gas industry scale recently grown?
- The markets and the geo-politics of energy
- Economic dynamics of the energy industry and the role of natural gas as a transitional energy
- Investing in projects and value creation
- Economic analysis of projects
- Measures of value
- Valuation for decision making
DAY THREE: INVESTING IN NATURAL GAS AND MANAGING OPERATIONS
- Principles of corporate finance for the oil and gas companies
- Behavioral finance and international business
- Economic value added in the context of natural gas projects
- Project feasibility analysis
- Decision measures
- Risk and uncertainty in the natural gas business
- Commodity markets and arbitrage opportunities
- How to mitigate risks and capitalize on the upsides
DAY FOUR: MARKETS AND MARKET INSTRUMENTS
- Forward, futures, and options contracts
- Incorporating flexibility to gain from the upside potentials
- Long term contracts, price negotiations, and their role in managing the risks
- Hedging risks using market instruments. Is a perfect hedge possible?
- Arbitrage opportunities of the natural gas markets: Using LNG vessels to reap benefits
- Managerial decision making in an uncertain world
- Portfolio of downstream and Upstream projects
DAY FIVE: VALUATION, PORTFOLIO EFFECTS, AND STRATEGY
- Forecasting for international business: valuation, project finance, and strategy
- Interwoven uncertain factors of the business: subsurface and above the surface
- Currency exchange and political risks: two features of international business
- Partnerships could be win-win once they create an economic advantage
- Emerging environmental concerns and the emission markets: CO2 and NOx
- Concluding remarks: does “fortune favor the bold”?
Module 2: Gas & LNG Markets, Pricing and Contracts
Day Six: Dynamic of the Petroleum Industry and English Contract Law
- Introduction to oil and gas contracts
- Key terms and definitions
- Downstream
- Midstream
- Upstream
- The main international industry players
Legal System and English Contract Law
- Mandatory elements of a legally enforceable contract
- Contract formation
- Contract terms
- Interpretation of contract terms
- Remedies for breach of contract
- Contract termination in English law
Day Eight: The Essence of Oil, Gas, and LNG Sales Contracts
The Characteristics of LNG Sales Contracts
- The contractual process
- Commercial realities
- Drafts and drafting
- Enforcement
- Fundamental legal principles
- Cultural and language issues
- Fundamental legal principles
- LNG sales contracts
- Global gas market
- LNG and domestic gas value chains
- Structuring an LNG project
- Government role
- Capacity building
- LNG development environment, social impact and safety
- Pricing
- LNG and Gas Contracts
- Introduction
- PSC vs. Licenses
- Preliminary agreements
- Domestic gas sales agreement
- LNG sale and purchase agreement
- Miscellaneous agreements
Day Ten: Contract Liability, Indemnity, Insurance: Transportation Agreements
Contract Risk Management
- Risk management and LNG business
- Types of risk in LNG
- Transportation agreement
- The contractual arrangements put in place for getting petroleum from the wellhead to the marketplace
- Off taking and transporting Oil & Gas (Pipeline or Ship)
- Typical terms of a gas pipeline Transportation and Processing Agreement (TPA)
- Transportation (or Transshipment) of crude oil and Liquefied Natural Gas (LNG) or Gas to Liquids (GTL)
- International practices and model contracts
The Essential of Negotiations in Oil and Gas Context
Liability Clauses
Contractual Indemnity
Insurance Provisions
Day Sixteenteen: Gas Sale and Purchase Agreements
- Types of gas sales agreements
- Parties
- Term and effectiveness: Duration and delayed start date provisions
- Sale, purchase, and delivery
- Gas reserves
- How to express gas quantities in pipeline gas contracts?
- Take-or-pay, carry forward and make-up
- Current practice on shortfall penalties
- Quality
- Price
- Nominations, undertake and overtake
- Measurement and testing
- Invoicing and payment
- Force majeure in gas sales contracts: The differences between pipeline gas and LNG
- Understand the purpose and risks this clause is intended to mitigate
- Avoiding common force majeure pitfalls
- Protect yourself from abuse and misuse of this clause
- Mechanics of exercising force majeure rights
- Termination
- Tax
Day Seventeenteen: Contract Claims and Dispute Resolutions
- Tiered dispute resolution mechanisms
- Formal dispute resolution
- Preventing costly litigation through effective use of ADR option
- Types of dispute resolution vehicles
- Assessing litigation vs. Arbitration options
- Mediation considerations
- Considerations for selecting effective mediators and
- Arbitrators
- Selecting arbitration and mediation rules of procedure
- Drafting effective dispute resolution clause
- Contract review, evaluation, and lesson learned
- Overview and conclusion
