This course covers oil and gas financial modelling and project evaluation concepts, combined with practical experience in designing solutions to real-world financial modelling challenges.
This workshop helps participants to get the most out of the remainder of the course. It covers key, advanced areas of Excel that are relevant to oil and gas financial modelling and project evaluation.
Here are just some of the areas we cover in our in-depth, hands-on workshop:
● Working with large data sets
● Summarising and aggregating data
● Extracting data that matches criteria using flexible formulas
● Error handling
● Ways of improving structure
● Techniques for keeping formulas constant yet flexible
● Combining and splitting cells according to the content they contain
● Advanced techniques for creating automatically expanding charts and ranges
● Introduction to macros & when to use these
We then apply and practise these functions during the remainder of the course.
Bring Your Models!
Everyone’s models are different. As such, participants are encouraged to bring along their own financial models to obtain assistance, ideas, guidance and suggestions from the trainer in private.
This is a key step in applying the concepts learned on the course to improve real-life models so please take the opportunity to draw on the trainer’s experience and expertise!
Duration Learning Credits
5 days – 40 hours of 40 PDU’s
Session
Public Classroom Pricing:
Early Bird Price: USD 3495.00
Regular Price: USD 3995.00
Instructor-Led Virtual Live Pricing:
Early Bird Price: USD 2495.00
Regular Price: USD 2995.00
Private Group / In-House Learning:
Have a group of 3 or more people? Register
yourself with a special pricing and request
the training exclusively for your group.
Hot Selling Course
Introduction to Financial Modelling for O&G
Financial Modelling Principles & Practices
Provides a sound understanding of financial modelling best practices and the practical application of these to real world situations.
Brief Introduction to Financial Modelling in O&G
● What is a financial model?
● What is included in the scope of a financial model?
● What makes a good spreadsheet model?
● Types of O&G financial models during the lifecycle of an O&G project
● Key O&G financial modelling principles: P10, P50, P90 reserves, demand drivers
Case Study: What makes a good model?
Examine both good and bad practices in modelling
Principles of Best Practice Financial Modelling
● The 7 steps of financial model building
● How to allow for uncertainty in O&G projects
● Best practice guidelines and financial modelling standards
○ Compare and contrast functions, formatting and functionality
● Designing for flexibility and scalability
● Designing for consistency
● Designing for usability and functionality
● Designing checks and balances
○ Best practices for creating and displaying checks and balances
● Using financial modelling standards
○ Compare different financial modelling standards
○ Examples of standards and how to apply these
● Setting up Excel for efficient financial modelling
○ Learn the tips and techniques that will dramatically speed up the creation of your financial models
● Using VBA in financial models
○ When is it appropriate & when is it not appropriate?
○ What things is it best suited for in financial modelling?
Case Study: Modelling with Standards
Examine the key components of a standards-based modelling template
Case Study: Setting up Excel for Fast Financial Modelling
Exercise: Essential Excel Functions for Financial Modelling
Financial Modelling in Practice
Apply the principles learned to oil & gas project evaluations to improve skills in the practical application of project evaluation concepts.
– The role of project evaluation
– Principles of discounted cash flow (DCF) modelling
Using data from an offshore oil asset in the Northwest Shelf region of Australia, participants will work through a number of case studies to develop a full financial model from scratch.
Case Study Part 1: Model Scoping & Structure
Design and scope the model: what should be included/excluded? What are the key outputs & sensitivities? How will the model need to be designed to provide these?
Planning & Building the Model
Concepts:
● Valuation of oil & gas projects
● Overview of oil & gas tax regimes: concessionary, production sharing & services contracts
● Overview of the Petroleum Resource Rent Tax (PRRT)
● Introduction to modelling Production Sharing Contracts (PSC)
● Economic limit and payback time
● Depreciation modelling: straight-line, declining and units of production
Case Study Part 2: Technical Data & Global Assumptions
Incorporate technical data from multiple different technical cases, including summarising and re-organising the data, incorporating flexibility for future changes and ensuring reliability/robustness. Allow for multiple different economic assumptions and incorporate the ability for the user to easily switch between these.
Case Study Part 3: Valuation
Bring together all the data to calculate the valuation, including converting from different currencies, real to nominal data, escalation factors, economic limit, abandonment charges, depreciation, and tax calculations.
Concepts:
● Investment indicators: WACC, RRR, NPV, IRR, VIR, Payback
Case Study Part 4: Investment indicators
Calculate and sense-check the key outputs: charts, investment indicators.
Finalising, Presenting & Controlling the Model
Concepts:
– Modelling uncertainty using sensitivity analysis, scenario analysis, and Monte Carlo Simulation
– Model optimisation to consider constraints: tools and techniques available
Case Study Part 5: Scenarios & Sensitivities
Identify key risk areas and then incorporate sensitivity factors for these. Build a sophisticated scenario manager to run multiple scenarios and highlight the results.
Exercise: Building Monte Carlo Simulation into an Existing Model
Concepts:
● Presentation and interpretation of results: charts & presentations
● Methods for comparing and selecting projects: key charts & techniques
Case Study Part 6: Presentation
Learn how to present the results of the financial model to support management decision-making.
Control of Financial Models
Covers ways to detect and prevent errors from occurring.
Topics covered include:
● Why audit financial models?
● Excel’s auditing tools
● Automated testing tools – role, purpose, limitations, demonstration
● Model documentation
Case Study: Model Review
Identify errors, problems and inconsistencies within a sample model using the auditing functionality within Excel and key third-party tools.
Related Courses
Advanced Budgeting & Forecasting for Oil & Gas (Modelling) (3 days)
Excel VBA Training Course (3 days)
Excel Data Analysis in Finance (1 day)
Introduction to the Power of PowerPivot (2 days)
Advanced Budgeting and Forecasting for Oil & Gas (Best Practice) (2 days)
● Business and Finance Analysts
● Finance Managers
● Investment Managers and Analysts
● CFOs
● Strategic Planning Analysts
● Financial Modellers
● Business Development Analysts
● Investment and Corporate Bankers
● Corporate Finance Managers
● Finance Professionals
● Project Managers
● Accountants
● Develop an excellent working knowledge of the most useful functions in Excel for financial modelling in the oil and gas industry.
● Develop a sound understanding of oil and gas financial modelling and project evaluation concepts.
● Gain experience in designing solutions to real-world financial modelling challenges and applying these to make investment decisions.