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Basics of Oil and Gas

Economics
Who should attend

Duration
3 days / 24 academic
hours / 24 CPD units /
21 PE credits

Oil and gas specialists

Heads of companies and divisions

Economists

Financial analysts

Developers of investment projects

Accountants

Sales specialists who wish to acquire a comprehensive perspective


on the economic aspects of a companys operations.

Objectives

To provide an understanding of the general economic concepts


of the activities of an oil and gas company

To prepare participants for specialized trainings on accounting, budgeting,


investment project evaluation and risk assessment in the oil and gas industry,
which are carried out by EY Academy of Business.

Training methodology
Training participants are provided with specially designed training materials
in Russian.
The theory is illustrated by practical examples on personal computers.
Training participants are provided with practical examples studied
in electronic format that can be used in their practical work.

Training outline
Day 1
Introduction
Economic characteristics of the oil and gas

industry
Sources of oil and gas: Upstream activities
Refining, transportation and sales

of hydrocarbons: Downstream activities


Structure of Russian vertical integrated

oil companies
Evaluation of reserves and prediction
of oil production
Assessing of reserve capacity according

to international classifications
Stages of the investment cycle of oil field

development
Predicted volume and rate of oil production

Price considerations for oil and gas


Brent, WTI, Urals and other exchange standards
Historical retrospective and forecast

of oil and gas prices


Hedging of crude oil price changes using financial

derivatives: forwards, futures and options

Creation of reserves for oil field recultivation


Main financial ratios of oil and gas companies

Basics of managerial accounting in oil and gas


companies
Cost: operating leverage and break-even point
Master budget and cost centers
Netback Price (NBP) and its application

in budgeting
Basics of taxation in the oil and gas industry
Types of agreements and
Agreements between the state and oil

companies: concessions, contracts, product


sharing agreements, licenses in RF
Taxes, excises, and customs duty: national

and world practice


Taxes on extraction of commercial minerals

(CME): specifics for the oil and gas industry,


and formulas for calculations
Export duty: stimulating effect of new 60-66-90

fees system and its future evolution


Excise fees and their stimulating influence

on high quality fuels production


Case Study: developing a computers financial
model of gas stations chain and evaluation
of business.

Day 2

Certificates

Sources of financing in the oil and gas industry

Certificates of the EY Academy of Business.

Equity and debt financing: recommendations

for combined financing


Raising funds on internal and external financial

markets
Weighted average cost of capital (WACC)

Investment projects in the oil and gas industry


and their evaluation
Forecasting of net cash flows, accounting

for inflation
Discounting forecasted net cash flows,

recommendations for discounting rate calculation


Net present value (NPV) calculations

Business valuation of oil and gas companies


Discounted cash flow (DCF) method
Market multipliers method with the example

of EV/EBITDA

Place and time


Open trainings are conducted at EY Academy
of Business from 9.30 till 16.30.

In-company training
Preliminary analysis of clients training needs,
identification of aims and goals
Training adaptation industry
Flexible approach to training location
and schedules
Report on the training results on request.

Recommended training scheme


Introduction to the Oil and Gas Industry
Basics of Oil and Gas Economics

Day 3

Investment Project Evaluation in the Oil and Gas


Industry

Introduction in oil and gas accounting (IAS/GAAP)

Risks in the Oil and Gas Industry: Evaluation


and Management

Costs capitalization principles in oil/gas field

development
Accounting for DDA (Depletion, Depreciation

and Amortization)

Accounting in the Oil and Gas Industry (IFRS/US


GAAP) Planning and Budgeting in the Oil and Gas
Industry

How to apply?
Please complete registration form online
at our web site: ey.com/cis/academy