Attended by more than 7,200 oil and gas industry managers from 106 countries.

Transcription

1 FOR 45 YEARS International Human Resources Development Corporation Instructional Programs 2015 Catalog Innovative programs with challenging simulation games that teach the business essentials of today s oil and gas industry. Attended by more than 7,200 oil and gas industry managers from 106 countries.

2 Welcome to IHRDC s 2015 Instructional Programs Catalog Dear Colleague: Keeping up to date with industry developments and expanding our knowledge and skills on a regular basis are essential to a successful career in the international oil and gas industry. With this in mind, I invite you and your colleagues to attend one of the outstanding, time-tested oil and gas industry management programs that we will offer in Boston, Cambridge, U.K., and internationally in These programs, updated and expanded regularly, will provide you with outstanding career development opportunities and a chance to network and share your challenges with peers from major oil companies, international independents, national oil companies, service companies, and government agencies from more than 40 countries. Our programs have a strong reputation because of our excellent instructors, who have many years of industry experience, our time-tested learning format an equal mix of lectures and team participation in unique and challenging business simulation games that enhance learning, and the evening events we organize for participants whether in Boston or Cambridge. For a better appreciation of our programs please listen to the testimonials of our many past participants at We offer our Petroleum Industry Foundation Programs in the spring (April through June) and fall (September through November) in both Boston and Cambridge, U.K. The list of Boston Programs for 2015 begins on page 2 in this Catalog and those for Cambridge on page 32. We encourage you to examine the content of the programs and select one or more for enrollment in Please note that included in the Boston Programs is a timely two-week certificate program International LNG Business Management Certificate Program devoted to the business fundamentals of LNG and the management of major international petroleum projects. Its challenging simulation game involves the design and development of a major LNG Project in East Africa. With the growing need for natural gas in the world s energy mix, this is an important offering for you to consider. IHRDC can also bring training directly to your organization by contracting for one of our Oil and Gas Business Workshops. These intensive, in-house programs guarantee a practical, private, and effective learning experience for you and your colleagues. We recommend you review these wideranging offerings, beginning on page 24, and let us know how we can assist in fulfilling your training needs. I encourage you to look at each of the programs in this catalog, choose the one that best meets your needs, and enroll as early as possible. Enrollment can be accomplished online and, when completed, we will help you with hotel accommodations, visa letters, and other details. To enroll, simply go to We look forward to seeing you in Sincerely, David A.T. Donohue PhD, JD President and Program Director About IHRDC IHRDC was founded in 1969 with a commitment to offer international oil and gas companies excellent products and services to train and develop their workforce. In the four decades since then from both our Boston headquarters and our offices in Houston, London, Amsterdam, Abu Dhabi, Kuala Lumpur, Jakarta, and Lagos we have set a worldwide standard of excellence through our Instructional Programs, e-learning and Knowledge Solutions, and Competency Management. Our offerings are being used daily by thousands of industry leaders. For more information go to

3 Table of Contents The Unique IHRDC Experience 02 IHRDC Oil and Gas Management Programs: b o s t o n 01: International Petroleum Business Program 04 m ay 11 22, : 22nd Annual International Gas Business Management Certificate Program 06 may or october 12 23, : Financial Modeling and Petroleum Project Economics 08 j u n e 1 12 o r september 14 25, : Advanced Petroleum Management Program: Enterprise-Wide Leadership in Times of Change 10 j u n e 1 12, : International LNG Business Management Certificate Program 12 j u n e 15 26, : Essential Skills for Oil and Gas Professionals 14 j u n e 15 26, 2015 The Superb IHRDC-Invincible Energy Experience 32 IHRDC-Invincible Energy Programs: c a m b r i d g e u.k., geneva, s i n g a p o r e 10: Economics of the Oil Supply Chain 34 a p r i l o r october 5 9, : Trading Oil on International Markets 35 a p r i l 27 m ay 1 o r october 12 16, : Oil Operations and Logistics 36 m ay o r september 21 23, : International Oil Trading and Price Risk Management 37 j u n e 1 3 o r october 26 28, : Price Risk Management in the Oil Industry 38 j u n e 8 12 o r november 9 13, 2015 Instructor Biographies 39 Enrollment Information/Forms 48 About IHRDC 51 Instructional Programs Client List 52 07: 25th Annual International Petroleum Management Certificate Program 16 s e p t e m b e r 14 o c t o b e r 9, : HR Processes, Competency Development, and Change Management Program 20 september 28 october 9, : International Petroleum Law Workshop 22 o c t o b e r 19 23, 2015 IHRDC Oil and Gas Business Workshops: 24 b a l i, dar es salaam, london, nairobi International Gas Business Workshop 26 m a r c h o r april o r november 16 20, 2015 Overview of the International Petroleum Business 27 a p r i l 20 24, 2015 Optimizing Gas Processing, Refining, and Petrochemical Facilities 29 a p r i l 13 17, 2015 Petroleum Project Economics and Risk Analysis 29 m a r c h o r november 16 20, 2015 Copyright 2014 International Human Resources Development Corporation. All rights reserved.

4 The course was, without a doubt, one of the very best I have ever attended. Superb instructors, quality teaching, comprehensive course notes, excellent team interaction through section building exercises, a superb extracurricular activity program in Boston, and the environment to ensure that we all made the most of our time in your wonderful city Participant Engaging Instructional Format The IHRDC Experience Combines Learning Excellence and Attention to Your Needs For 45 years, IHRDC has been a worldwide leader in training and competency development for the international oil and gas industry. Our Instructional Programs have gained a reputation for excellence in the industry for all of these years because of their unique design, superior instructors, and attention to participants needs throughout their stay. Our unique and highly regarded instructional design combines lectures by experienced oil and gas business specialists with challenging proprietary IHRDC business games. Classroom sessions include timely, comprehensive, practical, and challenging topic matter. Our business workshops allow participants to internalize learning through team discussion and decision-making that reflect real-life business opportunities. Our programs feature instructors and mentors who make it a priority to provide a first-rate learning experience. Exciting Historical and Cultural Location IHRDC s Oil and Gas Management Programs are offered annually in Boston, Massachusetts, U.S.A. This friendly and attractive city boasts countless cultural and historic attractions, worldrenowned academic institutions, exciting sporting venues, excellent restaurants and hotels, and a wide variety of shopping opportunities. Plus, it s known as the walking city and has terrific public transportation there s no need for a car! Stimulating Social Events and Cultural Activities We want you to feel at home during your stay in Boston. With this in mind, IHRDC provides a Program Coordinator to assist you with your non-program needs. The Program Coordinator will also organize social events during the evenings and bus tours to regional sites of interest on the weekends. IHRDC personnel will guide you on evening group tours of select Boston and Cambridge museums, Harvard and MIT universities, help you explore the Charles River and Boston Harbor via boat rides, and facilitate weekend visits to mountains and seaports in Maine, New Hampshire, and Rhode Island. Our planned social events include group dinners at favorite local restaurants, theater outings, concerts, sporting events, and special shopping tours to regional outlet malls. Invaluable Networking Opportunities By attending both classroom and social events with colleagues from all over the world, you will have a wonderful chance to learn from and network with some of the brightest professionals in the industry

5 FULL PROGRAM DATES: MAY 11 22, 2015 International Petroleum Business Program 01 This program provides managers in the worldwide petroleum industry with an in-depth understanding of the key aspects of the upstream and downstream petroleum business. It explores the important functional management issues today, including technical, financial, marketing, and petroleum accounting. The instructional format is a compelling combination of formal presentations by industry experts and team participation in a challenging business workshop. Brad s Cove Refinery Site Highway 1A Highway 1 Ann Ann Sandland National Forest UNIT ONE MAY 11 15, 2015 UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM ACCOUNTING UNIT TWO MAY 18 22, 2015 DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS Atlantic Ocean Sandland River WHO SHOULD ATTEND This program is intended for managers in the many functional areas of the international petroleum and natural gas industry, such as exploration, production, refinery and petrochemical operations, marketing, law, human resources, accounting, and finance. INSTRUCTORS David A. T. Donohue, PhD, JD Meg Annesley, BS Erhan Aslan, PhD Charles Brankman, PhD Y. Serdar Dogulu, PhD Bradford R. Donohue, MBA, CFA Marshall E. Frank, MS John B. (Jack) King, MBA Shashi Kumar, PhD Michael Lynch, MS Carlos Peralta, MBA Kris Ramanadhan, PhD Robert W. Taylor, MS Laura Varela, MS Eng Overview of the Energy Industry Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business. Host Government Agreements Typical host country exploration agreements: summary of the history and key provisions, including bonus payments, royalties, taxes; production sharing; participation arrangements. Exploration Methods The exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies. Drilling and Well Completions Planning the well; logistics; drilling functions; drilling procedures; formation evaluation methods; horizontal wells; improvements in drilling. Crude Oil and Natural Gas Pipeline Systems Introduction to crude oil and natural gas pipelines; design, construction and operation of pipeline systems; estimating project costs; pipeline contracts and tariffs; new pipeline developments. Measuring Financial Performance How companies report to their shareholders; GAAP principles; income statement; balance sheet; cash flow statement; equity statement; taxation and tax codes; preparing corporate financials; the audit; reading a major company annual report; measures of performance and the setting of company goals. Petroleum Industry Accounting and Taxation Successful efforts vs. full-cost accounting; corporate taxation; petroleum taxation; accounting for host government and joint venture agreements; supplemental reserves reports included in annual reports. Worldwide Petroleum Economics Worldwide energy supply; demand; reserves; pricing; corporate strategy; recent history and prediction of future trends; how petroleum economists make predictions. Markets for Associated Natural Gas The natural gas chain: industry structure and regional markets, interfuel competition; gas distribution; regulation and deregulation; economics and markets for gas, including combined-cycle power plants, LNG, ammonia, methanol, and gas-to-liquids. Refining and Petrochemicals Refinery: capacity evolution; technology changes; capital and operating costs; profitability; net-back estimation and recent trends. Petrochemicals in perspective: links to refining; key product families; industry drivers: cost of production, supply and demand; profitability and price forecasting; prospects for the future: maturity, environmental concerns, global competition. Crude Oil Tanker Transportation The tanker industry and market trends: an overview of the main characteristics of crude tankers; capital and operating costs; pollution at sea and the new regulations; calculating tanker transportation rates; Worldscale and charter arrangements. Marketing of Crude Oil and Products Development of the free market for oil; current international market structure; regional markets: physicals, futures, forwards, derivatives, options; roles of participants, price formation, price volatility; price reporting; crude oil and product pricing; negotiating and pricing petroleum sales contracts; introduction to hedging and price risk management. Products Distribution Distribution and retail marketing of petroleum products; structure of the margins realized along the distribution value chain; transitions in the marketing of transportation fuels; economics of the modern gasoline station. INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international petroleum business today. Team performance is measured on a financial basis and is catalyzed by healthy competition. The international petroleum business game takes place in Sandland, a fictitious country on the west coast of Africa. Team objectives include developing oil and gas reserves and deciding on the optimal way to develop and market the production. During each workshop session, teams are provided with technical and economic background that serves as basis for decisions to be made during that session. Team decisions are made and require a commitment of both capital and operating funds and occur during the following intervals: three years of exploration, two years of development, and fifteen years of production. Field Development and Production Cycle Onshore and offshore field development Unconventional Oil and Gas Resources WORKSHOP SESSIONS INCLUDE: and long-term production subsurface A comprehensive and practical understanding of design; reservoir fundamentals and n Introduction to the workshop the processes that are applied in the development reserves estimation: field development; n Negotiating the right to explore in Sandland of unconventional oil and gas projects, by looking inflow performance; integrated reservoir n The exploration survey stage at some active investment areas. management; and enhanced recovery. Surface n Exploration and delineation drilling facilities design: design for both onshore and n Reserves estimation and field development Energy Project Economics Excellent program. With what I have learned, I offshore operations; production operations n Gas processing Economic yardsticks; project cash flow before and management; investment analysis and n Oil and gas pipelines and port facilities and after tax; tax expenses and benefits; net now have a robust knowledge of my industry. reporting of performance; case studies. n Sandland operations accounting cash flow stream and payout; time value of 2014 Participant n Combined-cycle power plants money; opportunity cost and present value of Note: Gas Processing and Marketing of LPGs n Oil tanker charter decisions net cash flow; discounted cash flow analysis The content of this two-unit program is the same as the first Properties of gas and gas liquids; processing of n Refinery development decisions and internal rate of return; risk assessment two units of IHRDC s four-week International Petroleum associated gas; markets for LPGs; economics n Financing the port expansion and sensitivity analysis; examples of the Management Certificate Program held during September of natural gas plants. n Ammonia plants (featured on pages 16-17). economic analysis of energy projects. n Gas export pipeline decisions n Crude oil marketing decisions n Strategic planning and decision analysis n Evaluation of performance and presentation of results learn more or register for programs at

6 Pristine Beaches Pristine Beaches FULL PROGRAM DATES: MAY 11 22, 2015 OCTOBER 12 23, nd Annual International Gas Business Management Certificate Program Through a careful balance of lectures by leading experts and challenging workshop sessions, this twoweek program provides a comprehensive working knowledge of the technology, economics, finance, and markets that shape and affect the international gas industry today. It also teaches the management skills needed to develop projects and increase performance within an integrated gas business environment. North America North America t t Atlantic Atlantic Ocean Ocean ee r e Europe ee r e Europe Expetra Expetra Africa Africa UNIT ONE MAY 11 15, 2015 /OCTOBER 12 16, 2015 UPSTREAM GAS BUSINESS UNIT TWO MAY 18 22, 2015 /OCTOBER 19 23, 2015 DOWNSTREAM GAS BUSINESS South South America WHO SHOULD ATTEND This program is intended for specialists in one or more functional areas of the international energy industry who seek a comprehensive understanding of the gas industry. Many participants have said this is the best program in the industry today, due to its broad scope, challenge, realism, and fun. INSTRUCTORS David A. T. Donohue, PhD, JD Erhan Aslan, PhD Charles Brankman, PhD Y. Serdar Dogulu, PhD Bradford R. Donohue, MBA, CFA Marshall E. Frank, MS Samy H. Ibrahim, MS John B. (Jack) King, MBA Carlos Peralta, MBA Kris Ramanadhan, PhD Robert W. Taylor, MS Laura Varela, MS Eng Overview of the International Gas Industry Gas measurements and units; the gas chain; market structures; worldwide natural gas economics; major players; evolution of the integrated gas-power business. Host Government Agreements Typical host country exploration agreements: summary of the history and key provisions, including bonus payments, royalties, taxes; production sharing; participation arrangements. Exploration Methods The exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies. Drilling and Well Completions Planning the well; logistics; drilling functions; drilling procedures; formation evaluation methods; horizontal wells; improvements in drilling. Energy Project Economics Economic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis. Unconventional Gas Resources A comprehensive and practical understanding of the processes that are applied in the development of unconventional gas projects, by looking at an active investment area: the Marcellus shale project in the United States. Gas Field Performance and Reserves Estimation Overview of production and reservoir management in the gas system; production technology; well testing; reservoir performance; reserves estimation. Gas Processing: Technology, Economics, LPG, and Ethylene Markets Overview of gas processing systems; liquid separation processes; LPG fractionation options; compression; engineering design and contracting methods; the market for LPGs; project feasibility and economics; ethylene processing, economics, and markets. Gas Pipeline Systems Major considerations in the cost-effective design, construction, and operation of gas pipeline systems; system design variables: impact on cost and capacity; estimating project costs; pipeline load factors; typical pipeline tariff; examples of recent pipeline construction costs. Load Balancing Systems and Tariffs Needs for load balancing and system and customer benefits; storage options, capital and operating costs: underground, cavern, and LNG facilities; operational procedures; new options for marketing storage services; case examples. Gas Sales Contracts Typical terms in gas sales contracts; pricevolume; risk allocation; from gas contracts to tariffs; indexing; re-openers; typical contract examples. Gas Market Analysis and Pricing The need to identify gas markets early; gas market analysis; netback pricing and interfuel competition; market segments and market opportunities. Gas-Fired Power Plants Overview of combined-cycle gas turbine power systems; technology: plant design, fuel efficiency, available packages; project feasibility: capital costs, economics, risk, financing, contracts, markets, capital and operating cost estimating; contracting for fuel supply and power sales; worldwide power trends; examples of recent and planned projects. Overview of LNG Business Overview of the role of LNG within the gas chain; technology: LNG plants, liquefaction, ship design and operations, LNG re-gasification units; LNG project feasibility: capital costs, economics, risk, financing, markets; LNG plant design: gas reserves to support a plant, contract prices, contracting; examples of recently completed and planned projects. Petrochemical Uses for Natural Gas: Methanol, Ammonia, and Gas-to-Liquids Conversion Use of gas for ammonia and methanol and conversion to liquid fuels; processes for conversion of gas to methanol; markets and project economics; ammonia and fertilizers: source of supply, types of processes, intermediate and end products, markets; project economics; examples of recent and planned projects; gas-to-liquids conversion; available technology; major players; capital and operating costs; economic analysis. supply; structure and regulation of local distribution companies (LDCs); marketing demands; design and construction of distribution systems; expansion; operations: load balancing, distribution planning, maintenance, environmental considerations, rate-making policies and practices. Project Financing: Commercial Debt Structuring and Case Study Corporate and project financing; sources of debt and equity financing; public and private sources of capital; multilateral and bilateral sources of financing; risk assessment and mitigation; structuring of financing; preparing the financing plan; negotiating the term sheet; preparing the financing documents; closing. Case studies examples of project financing: Qatar Gas Project; Colombia Power Project; U.S. Gas Storage Project. Industry Regulation, Deregulation, and Convergence The nature of regulation in the energy sector; history and current state of the gas industry deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry; convergence of gas and power. Marketing Natural Gas in an Open Access Environment U.S. market structure; basic deal types and where they are done; the commercial organization; and current issues in U.S. natural gas markets. ATLANTIC BASIN GAS BUSINESS GAME: EXPETRA This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international gas business today. Team performance is measured on a financial basis and is catalyzed by healthy competition. The challenging Atlantic Basin business game takes place in Expetra, a small island country in the Caribbean, north of Trinidad. Gas and condensates are expected to be discovered in the deep offshore. Teams enter into exploration agreements, explore for and discover hydrocarbon resources, and then decide on the best way to market them over a 15-year production period. Markets include LNG exports to the U.S. and Europe, LPG and ethylene plants, gas pipeline to Miami, gas distribution and storage operations in the U.S., power plants in the U.S. and Expetra, and export-focused ammonia, methanol, and gas-to-liquids plants in Expetra. WORKSHOP SESSIONS INCLUDE: n Introduction to the exploration opportunity n Negotiation of the exploration and development agreement n Seismic exploration and mapping of seismic results n Exploration drilling and reserves estimation n Gas processing, LPG, and ethylene market decisions n Gas field pipeline decisions n Integrating load balancing and pipeline facilities n Gas-fired power plant market decisions n Acquiring a gas distribution business in the U.S. n Assessment of methanol, ammonia, and GTL markets n Export pipeline from Expetra to Miami n Assessing two LNG market opportunities n Integrated field development and market decisions n Decisions during the project lifecycle Measuring Financial Performance Review of financial statements: income statement, balance sheet, cash flow, and shareholders equity; capital and operating costs; measurements of financial performance; benchmarking; taxation; the accounting and audit process. Gas Distribution Overview of the gas distribution system; types of customers and load factors; competition from other fuels; sources of gas supply: gas Managing Energy Price and Volume Risks: Futures and Hedging The history of energy price risk management; physical, forward, and futures markets; typical futures market transactions; hedging, swaps, and options; volume risk supply contracts, prices, character of gas management; weather derivatives learn more or register for programs at

7 FULL PROGRAM DATES: JUNE 1 12, 2015 SEPTEMBER 14 25, Financial Modeling and Petroleum Project Economics During these two units, you will gain an integrated and practical understanding of financial analysis tools and techniques for the oil and gas industry that are related to building proforma project analysis, learning different methods of financial analysis, and applying different risk analysis tools to projects. The instructional format capitalizes on a careful balance of formal lectures by leading experts and specially developed workshops and business games. Republic of Oceana Subsurface Structural Map Oceana Industrial Park Baru Prospect UNIT ONE JUNE 1 5, 2015 /SEPTEMBER 14 18, 2015 Financial Modeling for the oil AND gas INDUSTRY UNIT TWO JUNE 8 12, 2015 /SEPTEMBER 21 25, 2015 PETROLEUM PROJECT ECONOMICS AND RISK ANALYSIS Java Sea WHO SHOULD ATTEND This program is designed specifically for energy managers, supervisors, and key employees from broad functional areas, such as finance, technology, and project development who wish to expand their knowledge of financial modeling and petroleum project economics. INSTRUCTORS David A. T. Donohue, PhD, JD Erhan Aslan, PhD Charles Brankman, PhD Bradford R. Donohue, MBA, CFA John B. (Jack) King, MBA Michael Kraten, PhD, CPA Carlos Peralta, MBA Rick Squires, MS Overview of the Petroleum Industry Today Oil and gas measurements and units; value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business. Introduction to Accounting and Financial Statements Basic financial and accounting concepts and standard technology; depreciation, impairment, and acquisition accounting; financial statements; accounting for investments; equity methods and consolidations. Financial Statement Analysis Background needed to understand and build models of the four key corporate financial statements; review and discussion of key measures of financial performance; consideration of the measures used by major companies and of participants companies; steps required to build proforma financial projections. Overview of Oil and Gas Accounting Definition of various industry terms; classification of reserves and resources; introduction of two major accounting options to account for oil and gas costs: successful efforts and full cost; GAAP filing and valuation methods to comply with SEC filing requirements, including asset impairment and asset retirement obligations. Project Financing: Commercial Debt Finance Corporate and project financing; sources of debt and equity financing; public and private sources of capital; multilateral and bilateral sources of financing; risk assessment and mitigation; structuring of financing; preparing the financing plan; negotiating the term sheet; preparing the financing documents; closing. Case studies examples of project financing: Qatar Gas Project; Colombia Power Project; U.S. Gas Storage Project. Energy Project Economics and Measures of Performance Project cash flow analysis, discounting cash flow to obtain present value and internal rate of return, the cost of capital and the effect of debt financing, other measures of project performance; sensitivity to changes in key variables. The Business Model Using the balanced scorecard framework, regression analysis, and flexible budgeting, how does the organization earn profits? What are the key strategic drivers of financial success? Cost and Expenses True costs of developing and delivering products and services; using gross profit analysis, activity-based costing techniques, and cost variance schedules. Financial Statements Using the business model, volume, expense, and revenue data to construct and understand financial reports; using balance sheets, income statements, cash flow statements, ratio analysis, and performance outcome measurements. Introduction to Petroleum Economics The fundamentals of economics: background and its application to the oil and gas industries. Energy Project Risk and Uncertainty Identifying and quantifying energy projects risks and uncertainty into project analysis; using statistical measures to quantify risk; two key risk assessment methods: scenario analysis and sensitivity analysis. Event Identification Identifying trouble spots that threaten the organization s ability to generate profit and value, using event inventories, target riskreturn profiles, risk tolerance levels, and event tracking processes. Probability Theory and Quantitative Analysis Introduction to probability theory, including probability density functions, overview of typical probability distributions and definition of key terms; applying probability theory in decision analysis with emphasis on concept of expected value. Decision Tree Analysis Applying a structured method for investment decision analysis; understanding the implications of different sets of decisions; identifying areas to reduce risk and understand economic opportunity cost of capital; identifying implications of various forms of contracts; analyzing implications of incremental project decisions. Risk Assessment Prioritizing trouble spots by likelihood of occurrence and potential impact. Using likelihood and impact tables, inherent and residual risk charts, and heat maps. Risk Response Assessing the organization s ability to respond to trouble spot flare-ups on paper and in reality. Using avoidance, sharing, reduction, and acceptance practices, as well as portfolio analysis techniques. Monte Carlo Simulation Extending the decision tree analysis framework for situations that include continuous probability scenarios; identifying the power and limitations of simulations, emphasis placed on relevance of expected value; Crystal Ball commercial software used to model risk in financial model. Field Development, Reservoir Performance, and Surface Facilities Formation evaluation; estimating reserves; field development; inflow performance; surface facilities design for both onshore and offshore operations; integrated reservoir management; enhanced recovery. Managing Energy Price and Volume Risks: Futures and Hedging The history of energy price risk management; physical, forward, and futures markets; typical futures market transactions; hedging, swaps, and options; volume risk management; weather derivatives. Portfolio Theory and Real Options Introduction to and discussion of Real Options and Portfolio Optimization, two other key methods used extensively today by many oil companies to evaluate project opportunities; understanding how a collection of investments can decrease overall risk in the portfolio. FINANCIAL ANALYSIS BUSINESS GAME: OCEANA This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers today. Team performance is measured on a financial basis and is catalyzed by healthy competition. Participants, working in teams, will evaluate an oil and gas business opportunity in the Republic of Oceana, near Indonesia. They build a financial model that will integrate various risks associated with the investment. This model will utilize a proposed Production Sharing Agreement and incorporate revenue, capital and operating costs, financing costs, and tax projections for the life of the project. Throughout the program, teams will add layers of complexity to the model by incorporating the different types of risk analysis tools presented in the lectures. The teams will present their project analysis to a decision review board by outlining the risk profile and expected performance measures of the project. They then learn the outcome of those decisions. Emphasis will be placed on the practical implementation of the tools presented in lecture and on developing practical financial modeling skills. WORKSHOP SESSIONS INCLUDE: n Modeling the production sharing agreement n Building the base-case proforma financial statements n Calculating standard measures of performance n Sensitivity and scenario analysis n Decision trees and expected monetary value n Monte Carlo simulation n Project selections, stakeholder, and financial analysis n Simulation of team investments in the economic environment n Evaluation of performance and presentation of results learn more or register for programs at

8 FULL PROGRAM DATES: JUNE 1 12, Advanced Petroleum Management Program: Enterprise-Wide Leadership in Times of Change This program focuses on managing and leading international oil and gas enterprises during times of change and maximizing overall performance. Its objectives are achieved through group discussions of business case studies and team participation in an enterprise-wide business simulation game. The simulation game will challenge teams to plan and manage the growth of an organization as it faces a series of strategic decisions that require the assessment of international, national, and local trends and policies, portfolio performance, enterprise resources, as well as environmental and business risks. UNIT ONE JUNE 1 5, 2015 GROWING THE ORGANIZATION IN RESPONSE TO COMPLEX BUSINESS DRIVERS UNIT TWO JUNE 8 12, 2015 SUSTAINABILITY: ANTICIPATING ENVIRONMENTAL, SOCIAL, AND ORGANIZATIONAL CHALLENGES WHO SHOULD ATTEND This program is designed for international oil and gas managers and executives who seek to enhance their skills in managing and leading international oil and gas enterprises during times of change so as to maximize overall performance. INSTRUCTORS David A. T. Donohue, PhD, JD Charles Brankman, PhD Y. Serdar Dogulu, PhD Robert Meyer, MA Robert F. Ryan, MS Jack A. Slotnick, CPEA Robert W. Taylor, MS Global, Regional, and Local Industry Trends and Expectations Identification of global trends that affect all businesses; petroleum industry trends; local and regional issues that affect the local energy businesses. Current conditions and growth forecasts of the business environment. Enterprise Business Fundamentals Strategic Planning Vision and mission statements, goals, objectives, organizational structure, and the processes for managing change. Measuring Corporate Financial Performance Historical and pro forma financial statements, portfolio analysis, capacity to obtain additional capital resources. Characterizing the Existing Businesses Participants will analyze and characterize the portfolio of the existing projects and rank them according to business performance fundamentals and the strategic objectives of the enterprise. This provides a greater understanding of the contribution of each business to the portfolio, their current tangible and intangible benefits, threats, shortcomings, and the links between them. Stage-Gate Project Management System Teams will apply the Stage-Gate project management process to benchmark performance, satisfy stakeholder objectives, allow scrutiny of recommendations and risks, and conduct a formal review at end of each stage. International Affiliates of NOCs Formation of new business models and alliances; changing roles in global and local markets; implications on the supply of oil and gas resources. Workshop activities: Round One Decisions Each team will evaluate new investment opportunities and, if it wishes, divest its interest in existing businesses. They will also conduct SWOT analyses and business profiling exercises. Round Two Decisions Five years after the Round One decisions, teams receive an update on the performance of their enterprise businesses, the current business environment, and any changes in the world, petroleum, and local trends that may have occurred. They are offered a new slate of business opportunities to consider. These decisions continue during the planning, construction, startup, and operation of all new undertakings. Analysis and Presentations of Results Teams prepare and deliver presentations in response to Rounds One and Two s workshop activities. Creating Effective Sustainability Programs Options to implement sustainability programs within the developing world; linkages between sustainability and social responsibility. Petroleum industry case studies. Sustainability Scorecard: How Do Companies Measure Performance? How companies and the industry measure sustainability success; review and discussion of industry guidelines and recent company reports; sustainability reporting and guidelines; global reporting initiatives; IP/ECA/API. Managing Effective Environmental Impact Programs Design and implementation of successful environmental management programs; the World Bank standards for preparing environmental impact statements; review of recent EIS programs. Building and Maintaining a Safety Culture Design and implementation of a safety culture; the role of management; recognition of employees. Case studies of companies which have implemented successful programs, Chevron s Agbami case study. Leadership Fundamentals Participants will explore, through the use of business case studies, the fundamentals of leadership and managing enterprise growth. They will learn how leaders manage change, especially for international enterprises. Managing Local Political Disputes and Security of Assets Anticipating and managing disputes which involve ownership claims by indigenous populations or failure to distribute petroleum revenues to local communities; managing security of assets and preventing disruption of production. Social Media The role and value of social media while managing an international petroleum enterprise. Social media best practices and common mistakes. Workshop activities: Round Three Decisions: Planning and Implementing Sustainability Programs Teams are asked to develop comprehensive sustainability programs for one or more of their investments. They will be asked to make a case for change in a business. Round Four Decisions: Responding to Incidents Teams are asked to respond to an HSE incident and make a new set of commercial decisions, five years after Round Three decisions. Analysis and Presentation of Results Teams receive the financial performance of their enterprise over a 20-year period and prepare presentations of their major decisions and their overall impact. GROWING THE INTERNATIONAL AFFILIATE OF A NATIONAL OIL COMPANY: WANOCO You are the senior executive in charge of managing the development and expansion of WANOCO International, the international affiliate of the West African National Oil Company. Your challenge is to build a profitable oil and gas enterprise in Latin America and Africa. At the outset of the business game, you manage a set of oil and gas industry assets that have mixed levels of performance. As new opportunities arise, you are asked to make decisions that lead to an optimal portfolio. You will measure the attractiveness of each opportunity based on commercial, financial, political, social, regulatory, and other characteristics, and implement your decisions effectively. In the process, you will respond to many different business challenges. Teams participate over a simulated 20-year time span and report final performance results. Developing a Competent National Workforce The process of planning, managing, and implementing a competency management system to enhance the performance of the national workforce. Case studies of successful competency management system implementations learn more or register for programs at IHRDC s Robert Taylor conducts a lecture session in the IHRDC Management Institute.

9 FULL PROGRAM DATES: JUNE 15 26, WHO SHOULD ATTEND This program will benefit managers, government officials, and specialists in one or more functional areas of the international energy industry who seek a comprehensive understanding of the liquefied natural gas sector of the international gas industry and/ or how major oil and gas industry capital projects are successfully managed. It is an ideal supplement to IHRDC s gas industry foundation program, The International Gas Business Management Certificate Program, which many participants refer to as the best program in the industry today. INSTRUCTORS David A.T. Donohue, PhD, JD Erhan Aslan, PhD Charles Brankman, PhD Y. Serdar Dogulu, PhD John B. (Jack) King, MBA Kris Ramanadhan, PhD International LNG Business Management Certificate Program This two-week, major capital project program is ideal for those who wish to learn how major LNG projects are developed, from concept to operation. Unit one is devoted to LNG fundamentals including LNG market history, pricing and trends; major players along the LNG value chain; application of Stages 1 and 2 of the Stage-Gate process; LNG project assessment and development planning: from supply to delivery including, gas resources, gas field development, LNG technologies, and major commercial requirements. Unit two reflects how LNG and other major oil and gas capital projects are completed on time and within budget. It is devoted to the application of Stages 3-5 of the Stage-Gate process: from commissioning the Front- End Engineering (FEED) study to obtaining Final Investment Decision (FID); planning, selecting, and managing EPC contracting, commissioning, and, after in-service, project reappraisal, startup, and operation. UNIT ONE JUNE 15 19, 2015 LNG Business FUNDAMENTALS The sessions are identified in brown and the content of one or more lectures are shown below these titles. Gas Fundamentals: Gas Hydrocarbon Properties and Conversion Natural gas hydrocarbons and their chemical properties, gas volume, and thermal energy measures; gas industry terminology and LNG acronyms. Gas quality, heating value, density, gas liquid yield; comparative energy value analysis: natural gas, LPGs, condensate, LNG. Gas Market Fundamentals Gas Market Fundamentals Overview of the International Gas Markets LNG Value Chain, Global Market History and Trends Market structure and value chain; gas market sectors; historical gas market supply and demand in various regions of the world and projected future demand. LNG value chain; LNG business history; future market trends. Pricing options: base and indexing options; liberalized market pricing; current pricing in Asia, Europe, North America, potential hybrid pricing. Locations of supply, liquefaction, receiving terminals. Key players: sellers, buyers, NOCs, IOCs, lenders and banks, joint ventures, ministries, legal firms. LNG Project Fundamentals Overview of Gas Supply for an LNG Project LNG Liquefaction Plants LNG Transportation and Receiving Terminals Gas supply: exploration, drilling, resource estimation, field development; natural gas processing, gas liquids, market options; LNG liquefaction plants: design, technology, development schedule, capital costs; LNG ships: technology, operating fundamentals and capital costs, ship ownership options; LNG receiving terminals: design, technology, capital costs, third party tariffs. LNG Legal Fundamentals LNG Sales and Purchase Agreements: History, Protocols, and Documents LNG Shipping Agreements LNG Joint Ventures and Operating Agreements Major legal agreements; joint venture agreements; LNG sale and purchase agreements: terms, history, relationships, negotiating team composition, legal terminology issues; charter party for LNG ships, receiving terminal access agreements. LNG Commercial Fundamentals Energy Project Economics Project Financing of LNG Projects Introduction to FEED Contracts and Tendering Processes Project economics: economic yardsticks, cash flow, tax expenses, internal rate of return, risk assessment, sensitivity analysis; project financing: commercial debt structuring; project risk analysis; FEED and EPC tendering and contracting. LNG Project Management The LNG Stage-Gate Process Stage 1: Assessment of LNG Project Opportunity Stage 2: Project Development Optimization Early Estimation of Project Costs and Schedule Management of LNG Project Environmental and Socioeconomic Impacts Stage 3: Requirements and Execution Planning Stage-Gate project management process; project alignment and integration of the full value chain; fulfilling the requirements of Stages 1 and 2: from opportunity assessment to project optimization; planning for Stage 3. Estimating project costs, schedule, risks, environmental and social impacts, and capital funding. UNIT TWO JUNE 22 26, 2015 Management of Major INTERNATIONAL Petroleum Projects: LNG case study Overview of the Stage-Gate Project Management Process The development cycle of a major oil and gas industry capital projects. The use of the Stage- Gate project management process to enhance decision making, risk management, project schedule, and cost control. Execution Strategies for FEL (Front- End Loading) and FEED (Front End Engineering Design) Front-end loading, design basis for FEED, quality of deliverables from FEED, FEED contractor pre-qualification and selection, FEED to EPC transition. Introduction to EPC (Engineering Design, Procurement, Construction) Contract Development Project contracting strategies, EPC contractor roles and responsibilities, contract development and tendering process, bid package development, criteria and methodology for EPC contractor selection, lump sum vs. reimbursable contracting options, agreements and guarantees. Estimating Project Costs and Schedule Cost estimating classifications, approach to cost estimating for FID, estimating capital and operating costs, project schedule and contingency assessment, calibration of costs and schedule compared to other projects. Introduction to Stage 4: Project Execution Planning Stage 4 execution planning, project governance, scope and technical issues, management of change processes, interface management, contracting plans, work breakdown structure, SHE plans, project economics and funding plans, communications plans. Detailed Engineering Activities and Coordination EPC contract award, global and detailed engineering activities, interfaces with procurement and construction, detailed engineering organization and governance. Procurement Activities and Coordination Global procurement strategies, success factors, quality control and quality assurance systems, total lifecycle cost analysis, interfaces with detailed engineering and construction, contract administration. Construction Planning and Management Principles Flawless execution needs, plant layout and plot plans, site prep and laydown areas, material logistics and control, construction quality control, interfaces with detailed engineering and procurement, multi-contractor interface management, construction progress stewardship, handover to commissioning. Construction Leadership Implementing SHE Principles Safety leadership and culture; safety management systems, safety pyramid and stewardship, incident prevention, incident evaluation, root cause analysis, proactive assessment of safety in the workplace, cultural diversity, related challenges. Completion of Construction, Commissioning and Startup Key elements of startup, organizational design, safety during commissioning, pre-startup audits, training requirements, coordination with upstream and downstream facilities and customers, development of punch-list items and handover to operations. Project Closeout, Reappraisal, and Long-Term Operations Systematic capture of post-project learnings: project closeout documentation, investment reappraisal techniques, look-backs and comparison with FID. Expanding plant capacity and managing an LNG facility and relationships after startup. MANAGING AN LNG PROJECT BUSINESS GAME: COSMOS Your company has made a major rich gas discovery offshore the Republic of Cosmos in East Africa, and your team has been asked to manage its development as a major LNG export project following the Stage-Gate project management process. In the first week, you will progress the project through Stages One and Two. In Stage Two you will assess the gas resource, define the scope of the LNG project, and state the business case for development. During Stage Two you will consider development options including technology selection, conceptual design, execution strategy, costs and schedule estimates, and project financing. During the second week, your team will continue developing the LNG project through Stage Three (Front End Engineering Design and Final Investment Decision), Stage Four (Engineering Design Procurement and Construction), and Stage Five (Startup and Operations). Throughout the workshop sessions, teams of participants will face important decisions associated with the commercial, legal, financial, design, planning, and development of this challenging LNG project. They will assess and contract to sell LNG to various market opportunities (Brazil, China, U.K., and spot market), negotiate project financing, and develop and execute the project while considering realistic challenges and constraints that are typically faced by the developers of large energy projects. Participants will present their team s decisions and business results in a friendly learning competition to win the team prize

10 FULL PROGRAM DATES: JUNE 15 26, 2015 Essential Skills for Oil and Gas Professionals 06 This two-week program is designed for mid-to-senior managers and supervisors from all sectors of the oil and gas industry who seek to enhance four essential critical management skills: Leadership, Negotiation, Business Communication, and Strategic Planning. The program is taught by highly regarded instructors who have broad and practical management experience in the international oil and gas industry or are specialists in the area in which they teach. Republic of Nicola AFRICA UNIT ONE JUNE 15 19, 2015 LEADERSHIP AND ESSENTIAL NEGOTIATION SKILLS UNIT TWO JUNE 22 26, 2015 EFFECTIVE BUSINESS COMMUNICATION AND STRATEGIC PLANNING Atlantic Ocean WHO SHOULD ATTEND This program is designed specifically for mid- to senior- managers and supervisors from all sectors of the oil and gas industry who wish to enhance their competencies in four essential management areas. INSTRUCTORS David A. T. Donohue, PhD, JD Charles Brankman, PhD John B. (Jack) King, MBA Elizabeth MacDonald, MA Robert F. Ryan, MS Kermitt Walrond, PhD IHRDC s Robert Ryan conducts an interactive Leadership Skills session. Leadership Skills Needed for High Performance Organizations Effective individual and team leadership and management: motivation, managerial styles; organizational climate; goal setting and action planning; leading change methodology; simulation, presentation, discussion, case studies, small group work, and assessment. Leadership Case Study: Transforming the U.S. Marketing and Refining Division of a Major Oil Company How a major oil company went from last to first in net margin per gallon in the marketing and refining of gasoline in the U.S. How strategic planning, leadership skills, and the use of the Balanced Scorecard were fundamental to this success. Essential Negotiation Skills: A Process for Positive Results The essentials of positive negotiation: the process of positive negotiation developed at the Harvard Negotiation Workshop applied to a petroleum case study. The key steps you will take to successful negotiations are: Step One: Discover Underlying Interests of the Parties Underlying motivations; needs and concerns, fears and aspirations; understand your interests; understand the interests of the other side. Step Two: Generate Options to a Negotiated Solution Inventing options to meet underlying interests; option as a possible agreement but not a commitment; obstacles that inhibit the invention of options. Step Three: Identify and Use Independent Standards Making negotiation a joint search for independent standards; use standards to persuade and protect; distinguish which standards are appropriate. Step Four: Deal with People Problems Separate the people from the negotiating problem; use people techniques to solve people problems: acknowledge emotions without blaming, improve communication, listen actively. Step Five: Generating Alternatives to a Negotiated Solution Explore alternatives to the existing negotiated outcome; improve the terms of the negotiations; have an alternative solution in your back pocket; enhance confidence in the negotiating process. Step Six: Reaching Closure Think about closure before you begin negotiations; move toward closure gradually as negotiations proceed; start with a framework for agreement; only agree to everything at the end. Effective Business Communication Setting a communication strategy: credibility, persuasion, and channel choice. Presentation structure: writing vs. presentations vs. meetings vs. one-to-one conversations; writing more effectively; making effective presentations; running efficient meetings; speaking effectively one-on-one. Case studies and workshop sessions. Strategic Planning and Implementation Major trends and drivers of change within the international oil and gas industry: anticipating the future throughout the oil and gas value chains. Latest approaches to strategic planning and its importance for setting company vision and goals; effective implementation of strategy; planning and implementation of the plan using the Balanced Scorecard. Historical structure of the international oil and gas industry. Examples of strategic planning by key international companies including Petrobras, Mobil Oil, and others. This program is one in a million. I have attended several professional and management courses in the U.S. and Europe, but IHRDC outperforms them all Participant DEVELOPING NICOIL S STRATEGIC PLAN: NICOLA This business game is an integral part of the learning process. Participants, divided into teams, make real-life strategic decisions that commonly confront managers in the international petroleum business today. Teams have been retained to work with a small U.S. company of exploration specialists, Nicoil, that has made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan for the company. A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoil s business strategy and then prepare and implement a strategic plan. WORKSHOP SESSIONS INCLUDE: n Identify Nicoil s strategic plan, vision, and mission statement n Convert strategic plan to Balanced Scorecard n Adopt Balanced Scorecard to implement plan n Identify Nicoil s corporate culture learn more or register for programs at

11 FULL PROGRAM DATES: SEPTEMBER 14 OCTOBER 9, th International Petroleum Management Certificate Program For more than twenty years, participants have consistently called this The BEST management program in the petroleum industry today! The four-week program provides learning in four key areas and includes compelling lectures by a strong and diverse faculty, as well as team participation in IHRDC s unique and challenging oil and gas business games. Brad s Cove Refinery Site Highway 1A Highway 1 Ann Ann Sandland National Forest UNIT ONE SEPTEMBER 14 18, 2015 UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM ACCOUNTING UNIT TWO SEPTEMBER 21 25, 2015 DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS Atlantic Ocean Sandland River WHO SHOULD ATTEND This program is intended for managers in the many functional areas of the international petroleum and natural gas industry, including exploration, production, refinery and petrochemical operations, marketing, law, human resources, accounting, and finance. More than 1,700 managers have taken this program, including individuals who hold very senior positions in the oil and gas industry. INSTRUCTORS David A. T. Donohue, PhD, JD Meg Annesley, BS Erhan Aslan, PhD Charles Brankman, PhD Y. Serdar Dogulu, PhD Bradford R. Donohue, MBA, CFA Marshall E. Frank, BS John B. (Jack) King, MBA Shashi Kumar, PhD Michael Lynch, MS Skip Maryan, JD Robert Meyer, MA Carlos Peralta, MBA Kris Ramanadhan, PhD Robert F. Ryan, MS Jack A. Slotnick, CPEA Robert W. Taylor, MS Laura Varela, MS Eng Kermitt Walrond, PhD Overview of the Energy Industry Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business. Host Government Agreements Typical host country exploration agreements: summary of the history and key provisions, including bonus payments, royalties, taxes; production sharing; participation arrangements. Exploration Methods The exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies. Drilling and Well Completions Planning the well; logistics; drilling functions; drilling procedures; formation evaluation methods; horizontal wells; improvements in drilling. Field Development and Production Cycle Onshore and offshore field development and long-term production subsurface design; reservoir fundamentals and reserves estimation: field development; inflow performance; integrated reservoir management; and enhanced recovery. Surface facilities design: design for both onshore and offshore operations; production operations and management; investment analysis and reporting of performance; case studies. Gas Processing and Marketing of LPGs Properties of gas and gas liquids; processing of associated gas; markets for LPGs; economics of natural gas plants. Crude Oil and Natural Gas Pipeline Systems Introduction to crude oil and natural gas pipelines; design, construction, and operation of pipeline systems; estimating project costs; pipeline contracts and tariffs; new pipeline developments. Measuring Financial Performance How companies report to their shareholders; GAAP principles; income statement; balance sheet; cash flow statement; equity statement; taxation and tax codes; preparing corporate financials; the audit; reading a major company annual report; measures of performance and the setting of company goals. Petroleum Industry Accounting and Taxation Successful efforts vs. full-cost accounting; corporate taxation; petroleum taxation; accounting for host government and joint venture agreements; supplemental reserves reports included in annual reports. Unconventional Oil and Gas Resources A comprehensive and practical understanding of the processes that are applied in the development of unconventional oil and gas projects, by looking at some active investment areas. Energy Project Economics Economic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; opportunity cost and present value of net cash flow; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis; examples of the economic analysis of energy projects. Worldwide Petroleum Economics Worldwide energy supply; demand; reserves; pricing: corporate strategy; recent history and prediction of future trends; how petroleum economists make predictions. Markets for Associated Natural Gas The natural gas value chain: industry structure and regional markets, interfuel competition; gas distribution; regulation and deregulation; economics and markets for gas, including combined-cycle power plants, LNG, ammonia, methanol, and gas-to-liquids. Refining and Petrochemicals Refinery: capacity evolution; technology changes; capital and operating costs; profitability; net-back estimation and recent trends. Petrochemicals in perspective: links to refining; key product families; industry drivers: cost of production, supply and demand; profitability and price forecasting; prospects for the future: maturity, environmental concerns, global competition. Crude Oil Tanker Transportation The tanker industry and market trends: an overview of the main characteristics of crude tankers; capital and operating costs; pollution at sea and new regulations; calculating tanker transportation rates; Worldscale and charter arrangements. Marketing of Crude Oil and Products Development of the free market for oil; current international market structure; regional markets: physicals, futures, forwards, derivatives, options; roles of participants, price formation, price volatility; price reporting; crude oil and product pricing; negotiating and pricing petroleum sales contracts; introduction to hedging and price risk management. Products Distribution Distribution and retail marketing of petroleum products; structure of the margins realized along the distribution value chain; transitions in the marketing of transportation fuels; economics of the modern gasoline station. Outstanding, very engaging and rewarding with a lot of new insights and learnings Participant INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND The business game during Units One and Two is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international petroleum business today. Team performance is measured on a financial basis and is catalyzed by healthy competition. The international petroleum business game takes place in Sandland, a fictitious country on the west coast of Africa. Team objectives include developing oil and gas reserves and deciding on the optimal way to develop and market the production. During each workshop session, teams are provided with technical and economic background that serve as basis for decisions to be made during that session. Team decisions are made and require a commitment of both capital and operating funds and occur during the following intervals: three years of exploration, two years of development, and fifteen years of production. WORKSHOP SESSIONS INCLUDE: n Introduction to the workshop n Negotiating the right to explore in Sandland n The exploration survey stage n Exploration and delineation drilling n Reserves estimation and field development n Gas processing n Oil and gas pipelines and port facilities n Sandland operations accounting n Combined-cycle power plants n Oil tanker charter decisions n Refinery development decisions n Financing the port expansion n Ammonia plants n Gas export pipeline decisions n Crude oil marketing decisions n Strategic planning and decision analysis n Evaluation of performance and presentation of results learn more or register for programs at

12 07 continued 25th International Petroleum Management Certificate Program UNIT THREE SEPTEMBER 28 OCTOBER 2, 2015 PETROLEUM PROJECT DEVELOPMENT UNIT FOUR OCTOBER 5 9, 2015 KEY SKILLS FOR THE PETROLEUM MANAGER Republic of Nicola AFRICA Pacific Ocean Carlos Cove Refinery Santos Highway 1A Grid Site LATIN AMERICA POWER WORKSHOP: SUCRE During Unit Three, teams are asked to develop a realistic CCGT power project in the Republic of Sucre, a fictitious country in Latin America. Each team is asked to prepare a business plan for the project, which will include a set of decisions with respect to construction, fuel supply and power purchase agreements, EPC and O&M contracts, and financing. Decisions will be run over 15 years of simulated operations for the business game environment. Highway 1 Sucre National Forest 140 km Llanos River Field Site WORKSHOP SESSIONS INCLUDE: n Project description, management, and market analysis n Project economics and proforma analysis n Project schedule and management plan n Identifying the project risks n Reviewing the financing term sheet n Design the project financing n Review the fuel supply and power sales agreements n Evaluation of performance and presentation of results Gas The Process of Commercializing Energy Projects Key steps in the formation and commercialization of an energy project from opportunity to operation; screening and feasibility analysis; design and development; key project agreements; preparing proforma financial projections; risk analysis and risk management; project management; project definition; resource scheduling, cost estimating; project controls; cost engineering; detailed engineering; procurement; construction management; project accounting and auditing; environmental management. Project Management Institute (PMI) body of knowledge and certification requirements. Project Planning and Management of Energy Projects Steps in the development of a petroleum project: screening studies, feasibility studies; detailed engineering, environmental studies; financing construction and operation. Project management examples of energy projects: the integrated planning and development of an international combined-cycle power plant. Case study: Developing the Steuben Gas Storage Facility. Health, Safety, and Environmental (HSE) Challenges in Petroleum Operations Worldwide developments in HSE performance, management, and regulations; key technical, managerial, and societal issues and responses; sustainable development, eco-efficiency, social impact; factors that affect cost; integration of HSE in the business; risk acceptance and tolerance, due diligence, accountability, liability; integrated health, safety, and environmental management systems, international standards, ISO certification, EMAS verification, audit, reporting and assurance to stakeholders. Petroleum Law Key legal issues in petroleum management; transnational and international oil and gas law; the role of law in commercial transactions: role of the legal system; role of the attorney; commercial relationships; host country agreements and government relations, joint venture agreements; oil and gas contracts and agreements; crude oil sales and transportation; risk management and dispute resolution. Financing of Energy Projects Financing petroleum projects; sources of debt and equity; preparing the financing proposal; negotiating financing; reaching the decision to proceed; project financing: structuring, role of multilateral and bilateral agencies; case studies: project financing of international oil, gas, and power projects. Industry Regulation, Deregulation, and Convergence The nature of regulation in the energy sector; history and current state of the gas industry deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry; convergence of gas and power. Leadership Skills Needed for High Performance Organizations Effective leadership and management: motivation, managerial styles; organizational climate; goal setting and action planning; leading change methodology; simulation, presentation, discussion, case studies, small group work, and assessment. Leadership Case Study: Transforming the U.S. Marketing and Refining Division of a Major Oil Company How a major oil company went from last to first in net margin per gallon in the marketing and refining of gasoline in the U.S. How strategic planning, leadership skills, and the use of the Balanced Scorecard were fundamental to this success. Current HR Practices in International Oil and Gas Current HR policies and procedures, organizational design, recruitment, manpower planning and development in the performance of the organization; defining job-specific competency models and development plans. Strategic Planning and Implementation Major trends and drivers of change within the international oil and gas industry: anticipating the future throughout the oil and gas value chains. Latest approaches to strategic planning and how important such plans are for setting company vision and goals; effective implementation of strategy; planning and implementation of the plan using the Balanced Scorecard. Historical structure of the international oil and gas industry. Examples of strategic planning by key international companies including Petrobras, Mobil Oil, and others. Essential Negotiation Skills: A Process for Positive Results The essentials of positive negotiation: the process of positive negotiation developed at the Harvard Negotiation Workshop applied to a petroleum case study. The key steps you will take to successful negotiations are: identify interests, invent options, use standards, manage people problems, develop alternatives, BATNA, and reach closure. Team participation in an oil and gas case study. Atlantic Ocean DEVELOPING NICOIL S STRATEGIC PLAN: NICOLA During Unit Four of this program, teams have been retained to work with a small U.S. company of exploration specialists, Nicoil. They have made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan. A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoil s business strategy and then prepare and implement a plan to achieve strategic and business goals. WORKSHOP SESSIONS INCLUDE: n Identify Nicoil s strategic plan, vision, and mission n Prepare a big picture view of Nicoil s needs and opportunities n Convert strategic plan to Balanced Scorecard n Adopt Balanced Scorecard to implement plan learn more or register for programs at

13 FULL PROGRAM DATES: SEPTEMBER 28 OCTOBER 9, HR Processes, Competency Development, and Change Management Program This program is ideal for those who seek a firm grounding in the Human Resource (HR) challenges facing the international oil and gas industry today, and the ways in which HR can contribute to implementing strategic plans, including the management of change. Republic of Nicola AFRICA UNIT ONE SEPTEMBER 28 OCTOBER 2, 2015 HR MANAGEMENT FOR OIL AND GAS MANAGERS AND SUPERVISORS UNIT TWO OCTOBER 5 9, 2015 CHANGE MANAGEMENT AND COMMUNICATION Atlantic Ocean WHO SHOULD ATTEND This program is designed specifically for midto senior- managers and supervisors from all sectors of the oil and gas industry who wish to enhance their competencies in essential HR management areas. INSTRUCTORS David A. T. Donohue, PhD, JD Robert Meyer, MA Kevin Rohan, MBA Joseph Schechtman, MS Carol Ann Sharicz, PhD Robert W. Taylor, MS Overview of the Petroleum Industry Today Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business. Systems Thinking: Developing a Big Picture Vision Benefits of systems thinking to HR professionals; thinking systemically; attitudes and behavior; and understanding complexity. Building the Workforce Scorecard Introduction to the Workforce Scorecard; methods to align workforce with corporate strategy; measuring workforce success through metrics; three challenges to successful implementation; integrating with the Balanced Scorecard. Emotional Intelligence and the Corporate Culture Organizational culture and change; emotional intelligence and applying emotional intelligence in your organization. Human Resource Management HR processes; HR strategy model; building a manpower plan; source of personnel; recruiting and compensation. Developing Competent Managers, Specialists, and O&M Personnel in the Oil and Gas Industry Typical competency levels, competency assurance system and process; effective development options using traditional and technology-based learning methods. This program is a must for all HR practitioners that would like to grow in this profession Participant Change Management Overview Understand key principles, systematic framework, and tools for an effective change. Elements of the overview include stakeholders; culture; values; HR target model; future vision; stakeholder model; organizational design; manpower and succession planning. Change Strategy Develop a strategic change plan that includes both risks and durability. Elements of change strategy include a seven-element grid for planning; stakeholder assessments; inquiry and feedback sessions and preliminary communications. The Change Plan Understand the blending of change elements into an overall strategic plan. Elements of the change plan include tactics by phase; by stakeholder; change communications, and project plan vs. change plan. Change Assessment Understand how a proposed change will impact an organization, and how to create an approach to achieve the vision. Elements of change assessment include the change management measurement model; translating the change into phases; and 3 x 3 change risk assessment. Change Planning and Communication Development of a sample tactical change plan that is easy to understand by all stakeholders. Elements of change planning include communication and engagement planning; project plan vs. change plan; and integration with day-to-day business. Change Leadership Understand that leaders will anticipate the emotional changes of stakeholders. Determine the support they will require. Elements of leaders in change include executive coaching before, during, and after; emotional intelligence Meyers Briggs, DISC, and Seven Points; Performance Dip and Zero-Sum Game. Sustaining the Change Validate that a change implementation plan is geared for sustainability. Sustaining the change includes measures and elements; survey and feedback techniques, and the change management model. Individual Personalities: Whole Brain Theory Whole Brain Theory and the Benziger Model; thinking styles and the natural giftedness of each individual; falsifying type: personal and societal costs; and the four specialized functions of the brain. DEVELOPING NICOIL S HR AND STRATEGIC PLAN: NICOLA This business game is an integral part of the learning process. Teams of participants make real-life strategic and HR decisions that commonly confront managers in the international petroleum business today. Teams have been retained to work with a small U.S. company of exploration specialists, Nicoil, that has made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan, which includes a comprehensive HR plan. A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoil s business strategy and then prepare and implement a Workforce Success Strategy to achieve strategic and business goals. WORKSHOP SESSIONS INCLUDE: n Identify Nicoil s strategic plan, vision, and mission n Prepare a big picture view of Nicoil s needs and opportunities n Convert strategic plan to Balanced Scorecard n Adopt Balanced Scorecard to implement plan n Planning the Nicoil organization and Workforce Scorecard n Identify Nicoil s corporate culture n Build the Workforce Scorecard n Build Nicoil s leadership n Add management and specialists functions n Add O&M specialists n Identify HR best practices for Nicoil n Plan the merger of ManOil with Nicoil n Team presentations of HR plans learn more or register for programs at

14 FULL PROGRAM DATES: OCTOBER 19 23, 2015 International Petroleum Law Workshop 09 During this program, participants will learn the practical aspects of petroleum law. The principles of law and legal practice will be applied to typical legal documents and issues that arise when a company enters a country to negotiate a host country agreement through the drilling of wells, field development, and the negotiation of transportation, lifting, and sales agreements. The program will demystify the fundamentals of legal analysis, the language and meaning of legal documents and, in the process, enhance the participant s working relationship with their legal team. The program scope is broad, highlighting the most important legal and regulatory issues that exist in the different phases of the upstream and midstream petroleum business. LECTURE SESSIONS WHO SHOULD ATTEND The program is most beneficial to energy industry professionals who are currently working as mid-level managers, administrators, technical, or government personnel. It is especially useful to individuals who routinely interact with lawyers in administering contracts, or who work with lawyers on business teams or in a negotiating setting. Young lawyers who have recently entered the petroleum business may also find this program useful. INSTRUCTORS David A. T. Donohue, PhD, JD Erhan Aslan, PhD Charles Brankman, PhD Y. Serdar Dogulu, PhD John B. (Jack) King, MBA Skip Maryan, JD Introduction to the Legal Process, the Petroleum Lawyer, and Basic Principles of International Petroleum Law Introduction purpose of commercial law (predictability, control of behavior); how laws are organized: civil law, common law, topical laws (e.g. environmental law, criminal law) and regulations; how laws work (enforceability); difference between a law question and a fact question; method of legal analysis (how lawyers are trained to approach problems). Lawyers how the law profession is organized (by employer and specialty); lawyers inside petroleum companies; lawyers outside petroleum companies (law firms and government lawyers). International petroleum law basic principles sovereign ownership; rule of capture; sanctity of contract. Legal Considerations When Entering a New Country How to use a lawyer fatal flaw analysis; universal common issues (authority, institutional risks, e.g. dispute mechanisms generally), local law, treaties (how can they help or hurt); four selected common issues (export rights, banking and currency conversion, structure of foreign investment, and environmental laws); example: Bilateral Investment Treaty. Host Country Agreements: Legal Structure and Fiscal Terms Overview production sharing; tax and royalty; service contract; hybrid. Special problems contracting with a government authority; police power and expropriation; unilateral changes (creeping expropriation); sovereign immunity; stability clauses. Agency, Products, and Liability Law: Subcontractors, Suppliers, Warranties, Indemnity, and Insurance Tort law duty to others; the concept of negligence; vicarious liability (acts of an agent); damages (actual, consequential, punitive). Warranties promises of quality or performance; expressed and implied warranties; disclaimers. Indemnity risk sharing inside the contract; knock for knock indemnities; no fault provisions; enforceability. Insurance risk sharing outside the contract; who is insured; primary insurance and contribution; subrogation. Drilling Contracts: Management of Problems When Drilling a Well The drilling contract a review of offshore international drilling contract terms with discussion related to: liability; damages; warranties and disclaimers; indemnity; insurance. Drilling and the environment international corporate responsibility; environmental standards and lending; review and discussion of an environmental law in host government contracts and in the joint operating agreement; abandonment of operations. Oil Lifting, Sales, and Hedging Agreements Lifting Arrangements the terminal; quality bank contracts and how they work; lifting schedule preparation; schedule implementation; failure to schedule or lift. Oil and product sales UCC sales law; UN sales law; sales law comparison of key terms; typical sales arrangement; standby letters of credit. Hedging agreements: NYMEX standard agreement. petroleum agreements business game: ganda The workshop setting is the Republic of Ganda, a small country located in East Africa across the border from new oil discoveries in Uganda. Your company wishes to explore for oil and gas in Ganda and has approached the government to negotiate one or more exploration agreements, including a Concession Agreement and/or a Production Sharing Contract. Another company has expressed an interest in participating with you in the ventures. Your team is to analyze the opportunities and select the one it finds most appealing. You must then explore, develop, and produce the discovered hydrocarbons and make key market decisions. Your major responsibilities are to review all legal documents beginning with the negotiation of the host country agreement and ending with the crude oil and natural gas sales agreements. You will manage field production through its 20-year lifecycle. Standard Joint Interest Petroleum Agreements: Joint Venture and Joint Operating Agreements What they are and how they work; outline of provisions; the most important issues including promises made to the government, discovery vs. commercial discovery, standard of performance, project governance (plans, budgets, meetings, voting, disagreements, transfers, withdrawal, disputes, basic accounting). Unitization: concept and five major issues to negotiate. Principles and Applications of Contract Law and Petroleum Service Agreements Offers a promise; how offers are made; bid solicitations (RFPs); terms of an offer. Acceptance how acceptance is made; acceptance varying terms; cultural and language problems in international contracting. Written contracts why writing is important (frauds, parole evidence rule); examination of important clauses (consideration, capacity to contract, entire agreement, changes, waiver). Oil and gas industry examples: Petroleum Service Agreements. Forming Business Organizations: Joint Ventures, Partnerships Three Models corporation; partnership; unincorporated joint venture. Taxation permanent establishments; double taxation; tax treaties; use of SPVs (tax deferrals and sales). Three structures compared liability; taxation; operational considerations; acquiring and divesting interests in a business. Oil and gas industry examples. Transportation: Crude Pipelines and Ships Pipeline law issues right of way and condemnation; regulated vs. unregulated; tariff setting; access; capacity reservations; curtailments. Shipping law issues admiralty law principles; vessel charters (rights of owners, rights of charterer, third party operators); bills of lading (negotiable and non-negotiable). Natural Gas and LNG Sales and Transportation Agreements Natural gas law issues: physical and financial agreements; typical terms and conditions; natural gas pricing and major trading hubs; special considerations for LNG; natural gas pipeline contract terms; terms and conditions of standard forms. Current Legal Issues Discussion of such topics as regulatory constraints on the drilling and completion of unconventional wells; stability causes vs. sovereignty rights; oilfield codes of conduct with respect to good oilfield practices; decommissioning issues; oil spill preparedness and new arctic regulations. When Things Really Go Wrong: Criminal Law Issues Company violations and personal jail time; when breach of a commercial contract can violate criminal law; bribery and corruption penalties (host and home countries); tax fraud. Business ethics: bribery, insider trading, and human rights violations. WORKSHOP SESSIONS INCLUDE: n Review of exploration opportunity, preparations for the first meeting with the government n Review of the fiscal provisions of the Ganda exploration agreements and selection of the one that you wish to negotiate n Economic analysis of the fiscal term options of the Ganda exploration agreement n Negotiation of the seismic and drilling agreements n Review of a typical drilling agreement n Negotiation of oil lifting, crude oil sales, and transportation agreements n Review of oil sales agreement n Exploration and reserves estimation n Fulfilling government regulations Dispute Resolution Options 22 learn more or register for programs at Disputes; local law, jurisdiction and courts; international arbitration; alternatives (experts and non-binding mediation); International Court of Justice. 23

15 IHRDC Oil and Gas Business Workshops Team collaboration in a challenging workshop setting was very effective. I cannot think of a better way to learn Participant IHRDC offers a number of practical workshops on energy business management that are taught as private in-house courses or in regional public offerings worldwide. Designed around IHRDC s comprehensive Management Programs, these workshops are ideal for learning the essentials of the international energy business. Each workshop combines lectures by experienced energy business specialists with a classic IHRDC business game, where participants work in teams to develop and manage an energy business over a simulated 20-year period. A business simulator is used to record each team s decisions and measure overall team performance. This form of learning has proven to be ideal because it challenges team members to reach decisions through debate and discussion, while fostering collaboration with industry peers from diverse backgrounds. In essence, participants learn from each other in the context of a realistic case study International Offerings BALI International Gas Business Workshop April 13-17, 2015 Petroleum Project Economics and Risk Analysis November 16-20, 2015 dar es salaam International Gas Business Workshop March 23-27, 2015 LONDON Petroleum Project Economics and Risk Analysis March 16-20, 2015 Optimizing Gas Processing, Refining, and Petrochemical Facilities April 13-17, 2015 International Gas Business Workshop November 16-20, 2015 Our Oil and Gas Business Workshops consistently receive very high praise. Many multi-national companies schedule private workshops annually to develop the important business knowledge and skills of their managers. nairobi Overview of the International Petroleum Business April 20-24, 2015 Please contact us at workshops@ihrdc.com to schedule a private offering or go to for more information

16 IHRDC Oil and Gas Business Workshops International Gas Business Workshop (5 DAYS) With Three Compelling Gas Business Simulation Scenarios This intensive business workshop introduces participants to all aspects of the integrated natural gas value chain. Through formal lectures and a challenging, team-based business simulation, participants learn the commercial, technical, financial, and economic aspects of the business from upstream gas supply, to midstream transportation and processing, and downstream markets. Special emphasis is placed on LNG, gas-fired power plants, and GTL opportunities. IHRDC has developed three business game settings that will be offered according to regional relevance: Cosmos In this unique IHRDC gas business workshop setting, teams explore and develop promising exploration blocks located within the sovereign boundaries of the island republic of Cosmos, located off the east coast of Africa, and manage this opportunity from inception through 20 years of performance. Expetra The setting of the alternative business game is the Atlantic Basin, where teams choose to explore several offshore exploration blocks in the republic of Expetra, an unexplored island in the Caribbean just north of a major gas discovery in Trinidad. Singnam This business game focuses on the challenge of commercializing and managing a sizeable gas prospect in Asia over a 20-year period. The setting is an undeveloped but highly populated hypothetical country on the South China Sea called Singnam Offerings Dar es Salaam March 23 27, 2015 Bali April 13 17, 2015 London November 16 20, 2015 Note: For our two-week public International Gas Business Management Certificate Program please refer to page 6. LNG Business and project development Workshop (5 DAYS) With the Cosmos or Coral Challenging Simulation Game In this highly regarded workshop participants learn the business essentials of LNG projects at each step along the LNG value chain and how to develop a project by integrating its technical, commercial, legal, economic, environmental, and project management fundamentals. The learning objectives are achieved through a combination of lectures by international specialists and team participation in a challenging LNG business game. With lectures as background, participants working in teams will develop a significant gas discovery by deciding on gas treatment processes and LNG technology, the train size to implement, number and size of ships to charter, receiving terminal needs, and, among several market options, to negotiate agreements with customers to sell the LNG. The opportunity is pursued by following the Stage Gate project management process, from opportunity assessment to startup, with the objective of monetizing the gas resource to achieve the highest rate of return subject to identified risks. In the process, participants become familiar with financing options, the nature of LNG contracting documents, from the Letter of Intent to SPA, cost estimating principals, project economic analysis, and the need to accommodate a joint venture partner, an E&P affiliate, and government interests. Teams will manage the project, from analysis to integrated development decisions, followed by 20 years of simulated performance. The workshop concludes with team presentations and the awarding of a team prize. IHRDC has developed two business game settings, Cosmos (East Africa) and Coral (offshore Australia) that may be selected according to regional relevance. When possible, we will arrange to visit an LNG facility, if it is local and access is available. Note: For our two-week public International LNG Business Management Certificate Program please refer to page 12. International LNG Business Management CERTIFICATE Program (10 DAYS) Incorporating the Cosmos LNG Project Development Simulation This program follows the development of an LNG project, as a major capital investment undertaking, from opportunity assessment to design, construction, commissioning, startup, and operation. It is offered annually on a public basis in Boston but it may also be offered on a private basis. Note: For our two-week public International LNG Business Management Certificate Program please refer to page 12. LNG Receiving Terminal Business FUNDAMENTALS Workshop (5 DAYS) With the Stanpak LNG Receiving Terminal Design Simulation Companies planning to import LNG may wish to schedule this workshop as a followup to the 5-day LNG Business and Project Development Workshop referenced on this page, which focuses on the business essentials of exporting LNG by introducing participants to the LNG business and the development of an LNG export facility. This additional 5-day LNG Receiving Terminal Business Fundamentals Workshop turns to the business concerns of the importer. The workshop s learning format consists of lectures by LNG specialists, and a business simulation game designed around business opportunities facing the owner of a proposed LNG receiving terminal in a hypothetical country that has a growing need for natural gas. The session begins with an analysis of LNG receiving terminal design options and the capital and operating costs of each option. The country or regional market demand will be analyzed to identify major market sectors, load factors, infrastructure needs, and strategic investment options to reach new markets and the pricing of alternative fuels. This analysis leads to market demand profiles and cost to deliver gas into various markets. Subsequently, the focus will turn to LNG supply and the options available to purchase or otherwise obtain supplies of LNG. This session also includes the negotiation of SPA agreements with suppliers. The simulation game sessions are integrated with the lectures allowing participants, working in teams, to prepare a plan for one or more LNG import terminals to meet the market gas needs of Stanpak, a republic in South Asia. Teams will consider LNG terminal options, analyze the country s growing market demand, and their ability to expand infrastructure to reach wider markets. With this background teams will analyze market options and negotiate LNG purchase agreements as an essential part of making an integrated project decision. After 20 years of simulated performance the teams will receive their results, make their team presentation, and learn whether they won the team prize. When possible, we will arrange to visit an LNG receiving terminal, if it is local and access is available. International Power Business Workshop (4 DAYS) Featuring Sucre, a Challenging Simulation of the Power Business This workshop provides international oil, gas, and power professionals with an overview of the international power business, with special emphasis on the commercialization of combined-cycle, gas-fired power plants. The instructional format includes formal lectures and a challenging, team-oriented business game. During the business game, teams will plan the financial development and operation of a combined-cycle power plant. Participants will also be asked to prepare a business plan for the project. This popular program has been taught for many international corporations. International Petroleum Business Workshop (5 DAYS) With an Engaging Petroleum Business Simulation This workshop uses lectures and a business simulation to provide a thorough grounding in the petroleum (oil and gas) value chain, including exploration agreements, exploration methods, drilling, field development, production, reservoir engineering and enhanced recovery, pipeline transmission, refinery and petrochemical operations, and marketing of crude oil and products. During the business game, participants work in teams to find and develop oil and gas reserves in the west African republic of Sandland and decide the optimal way to develop and market the production. In each session, the teams are given background information on the technical and economic aspects of the decision to be made during that session. They will pursue the development and marketing of the discovered oil and gas from the upstream to the midstream and downstream markets over a 20-year period. As participants apply classroom knowledge to practical job-related problems, they also develop the key financial skills used to measure project and corporate performance, including project investment analysis and financial statements. Note: For our two-week public International Petroleum Business Program please refer to page 4. Overview of the International Petroleum Business (4 DAYS) Offering Two Realistic Petroleum Business Scenarios This workshop is an abbreviated version of our popular International Petroleum Business Workshop. It is ideal for individuals from many different backgrounds (lawyers, accountants, HR, IT specialists, etc.) who seek a broad introduction to the international petroleum industry. It exposes participants to the integrated oil and gas value chains through a combination of overview lectures and team participation in a challenging business simulation. IHRDC has developed two business simulation settings that may be offered according to regional relevance: Buffalo The setting of this simulation is the continental United States, where teams will explore, develop, and market the production from an exploration lead that has been identified in the state of Wyoming. Teams will compete with each other and the financial performance of their decisions evaluated. Sandland This business game focuses on an integrated oil company in Sandland, a fictitious country on the west coast of Africa. Teams explore and develop oil and gas reserves and decide on the optimal way to market the production. The business simulation takes place over a 20-year period and individual teams are evaluated on their financial performance Offering Nairobi April 20 24,

17 IHRDC Oil and Gas Business Workshops INTERNATIONAL Petroleum LAW workshop (5 DAYS) Incorporating the Ganda Legal Simulation Game This program will provide participants with the practical aspects of petroleum law: how the law works in practice; how to read and comment on legal documents, procedures and regulations; and how to work with and assist members of their legal team. The principles of law and legal practice will be applied to the typical legal documents and issues that arise as a company first enters a country to negotiate a host country agreement covering the drilling of wells and the negotiation of transportation, lifting, and sales agreements. The program will demystify the fundamentals of legal analysis and the language and meaning of legal documents and, in the process, it will enhance the participant s working relationship with the legal team. The program scope will be broad, highlighting the most important legal and regulatory issues that exist in different phases of the upstream and midstream petroleum business. The instructional format will consist of lectures and case discussions by experienced faculty, team participation in Ganda, a challenging simulation game, and group examination and discussion of sample contracts. Note: For our public International Petroleum Law Workshop please refer to page 22. E&P Project Development Workshop (5 DAYS) With a Realistic Upstream Project Simulation This challenging digital workshop allows participants to learn the commercial, technical, economic, and project management processes (i.e. the industry s Stage Gate process) required to explore for and develop a deepwater offshore field. It covers all aspects of a classical upstream project management process, including seismic program design and analysis, exploration and appraisal drilling decisions, field development planning including resources estimation, well and reservoir performance predictions, uncertainty management, and project economics. All workshop communications and analysis tools (including well logs, reservoir simulation, risk analysis and financial models, and decision analysis) are available to participants in a digital framework. This unique instructional format includes engaging mentors who guide the teams step-by-step through the exploration and development of a deepwater offshore prospect in the west coast of Africa. Teams will make sequential decisions to move an attractive exploration opportunity along a simulated project timeline, from the execution of the exploration agreement to the field development decision. Each team s development decisions are captured by the digital application and their financial outcome is presented over a 20-year production period. Note: IHRDC recommends that those attending this program have some background in upstream petroleum technology. IHRDC s Charles Brankman assists during a workshop session in the IHRDC Management Institute. The INTEGRATED Upstream Petroleum Business Workshop: From EXPLORATION to Long- Term Production (10 DAYS) Featuring a Major Upstream Project Management Simulation This program will present, in a challenging workshop format encompassing approximately 50 percent of the instruction time, the essential analysis and decisions that are made by geoscientists, engineers, and project managers working in multidisciplinary teams, as they explore for and develop a deepwater, offshore petroleum prospect in Atlantica, an island republic in the Gulf of Guinea, on the west coast of Africa. The workshop consists of team participation in a realistic Stage Gate project management simulation of this major upstream project. Workshop sessions are devoted to host country agreements, seismic program design and analysis, exploration drilling decisions, field development planning, including deterministic and probabilistic reserves estimation, well and reservoir performance evaluation, surface facilities design, risk and uncertainty management, project economics including sensitivity analysis, and the management of field production through the full E&P lifecycle. The program will also incorporate the commercial aspects of upstream decisions through sessions on the analysis of host country fiscal agreements, joint venture arrangements, measuring company financial performance, obtaining debt and equity capital, marketing of oil, gas and gas liquids, and satisfying the many regulations necessary in today s industry. During the program, teams will make short presentations to their mentors and a major one at the end of the program summarizing their decisions and overall performance. Management of International Petroleum Projects: From Concept to STARTUP, LNG case study (5 DAYS) With an Engaging LNG Project Development Simulation This program provides a comprehensive overview of the challenges involved in developing and executing international petroleum projects. The program covers all aspects of the project development and execution process from concept to startup with particular focus on a systematic Stage Gate project management process to make timely decisions during the various phases of the project. Participants will learn how to assess and ensure the economics of the proposed investment and understand the planning process associated with EPC (Engineering, Procurement, and Construction) of major capital projects and steps for a successful execution. An LNG project off the coast of East Africa is considered during the simulation workshop where teams will analyze, plan, and develop the market opportunities for a recent discovery in the region and subsequently select the optimal investment, execute the project, and commission the plant safely. Note: For our two-week public International LNG Business Management Certificate Program please refer to page 12. DEVELOPMENT OF Unconventional Gas AND GAS LIQUIDS ProjectS (5 DAYS) A Gas Project Development Simulation in the Marcellus Shale The ongoing shale gas boom is a popular topic in the global oil and gas industry today. This timely workshop focuses on the critical technical and business issues related to developing unconventional gas resources. The design of this course combines lectures, class discussion, and team participation in an interactive learning simulation aiming to enhance the integrated understanding of technical, economic, commercial, financial, and regulatory considerations leading to development of unconventional gas projects. Four major segments of an unconventional project lifecycle, namely, identification of the resource potential, evaluation of commercial viability and development alternatives, project construction, and production operations will be covered in detail over this five-day program. The impact of increasing unconventional gas production to midstream and downstream segments of the industry is also evaluated as part of the lectures. During the interactive learning simulation sessions, participants will work on evaluating a Marcellus shale gas opportunity from its initial assessment to pilot prospect, field development planning, and into long-term production. Technical, commercial, and environmental considerations of an unconventional project development are all covered within the context of this challenging simulation. Optimizing Gas Processing, Refining, and Petrochemical Facilities (5 DAYS) Including Bilitan, an Integrated Petrochemical Simulation This five-day workshop provides a comprehensive overview of today s international refining, gas processing, and petrochemicals businesses and how they can be integrated in response to commercial and market changes to maximize overall performance. The program consists of a careful balance of lectures by a recognized industry specialist and team participation in a challenging business simulation mentored by a workshop facilitator. This unique blended learning format has proven to be the best way for participants to internalize the lecture content in a challenging and enjoyable teambased environment. In the process, participants learn the complexities and business challenges of the emerging petrochemical industry and the opportunities that exist to integrate these three sectors to maximize competitiveness. Secondary benefits include extensive participant networking, team leadership development, decision-making skills, and experience in making formal presentations Offering London April 13 17, 2015 Financial Modeling for the Oil and Gas INDUSTRY (5 DAYS) With Oceana, Financial Simulation Game Participants in this program will gain an integrated and practical understanding of financial analysis for the oil and gas industry. The program will provide a sound understanding of accounting and financial tools, key financial means of project performance, associated cost and expenses, profit earning, and key strategic drivers for financial success. The instructional format consists of lectures by a respected specialist and team participation in a classic IHRDC business simulation, an integral part of the learning process. The workshop setting is the fictitious republic of Oceana, near Indonesia, where participant teams will make real-life technical, financial, and market decisions that commonly confront managers in the international energy business today. Note: For our two-week public Financial Modeling and Petroleum Project Economics program please refer to page 8. Petroleum Project Economics and Risk ANALYSIS (5 DAYS) Offering a Dynamic Business Simulation This program teaches participants how to analyze, in a practical and realistic manner, the financial performance of oil and gas investments from both project and corporate perspectives. Attendees are asked to build financial models for typical oil and gas projects, calculate the standard measures of project performance (PV, IRR), and incorporate all project risks into the analysis using such processes as tornado diagrams, decision trees, scenario analysis, portfolio analysis, and Monte Carlo simulation. A major part of the learning is achieved through team participation in a challenging business simulation in the republic of Oceana where each team analyzes a major upstream project and presents their pre-development recommendations and postdevelopment results to an evaluation board Offerings London March 16 20, 2015 Bali November 16 20, 2015 Note: For our two-week public Financial Modeling and Petroleum Project Economics program please refer to page

18 IHRDC Oil and Gas Business Workshops building A WORLD-CLASS WORKFORCE: A COMPETENCY- BASED APPROACH (5 DAYS) This interactive, team-based workshop is designed for managers and HR specialists who want to learn how to use competency foundations in building a world-class workforce. The program approach is centered on defining, applying, and investing in the concept of workforce success and on identifying shared line management and HR accountabilities. The program will provide participants with both the skills and confidence to immediately use their learning in strategic business discussions within their organizations. In the first half of the program, participants explore the principles behind Norton and Kaplan s Balanced Scorecard. Using an oil and gas industry case study, the Organizational Learning & Growth element of the scorecard is put under a microscope, allowing a full examination of leadership and workforce behaviors, skills and competencies, and HR policy impacts. Workshops focus on differentiating strategic workforce capability from staying in business or industry baseline capability, ensuring that the right people are in the most strategic jobs, and that competency program investments are targeted appropriately. The remainder of the program focuses on the practical aspects of generating competency profiles, conducting assessments, identifying skill gaps, and building development plans to close gaps and align with an organization s strategic and financial targets. IHRDC s online Competency Management System (CMS) will be used to demonstrate how this process can be administered effectively in any work environment. Upon completing the program, participants will understand how a competencybased approach is beneficial to remaining competitive in today s energy industry. Competency Management Workshop (3 DAYS) Participants in this workshop will learn a solid competency framework that reinforces an organization s operational success and enhances its competitiveness. The program consists of project workshops conducted in a team environment with activities such as developing job descriptions and competency statements and models, understanding and conducting employee assessments, capturing learning gaps, and preparing appropriate development plans to eliminate the gaps will provide the starting point for a baseline workforce assessment and developing Individual Development Plans (IDPs). This workshop will reinforce the complete competency development process and enable participants to apply their practical skills to manage competency-based recruitment, build competency-based training plans, and carry out competency assessments. Petroleum Enterprise Management Workshop: Growing the INTERNATIONAL AFFILIATE of a NOC (5 DAYS) With an Advanced Petroleum Business Simulation This popular workshop focuses on the startup and accelerated growth of a new company as it seeks to develop an integrated business by investing in oil and gas projects in Latin America and Africa. Emphasis is placed on maximizing the performance of the enterprise by carefully selecting a portfolio of investments along the oil and gas value chain. Some of the important topics discussed include world and energy industry trends; strategic planning, project and corporate financial performance, portfolio analysis, characterizing investment opportunities, leadership, building a strong management team and a competent workforce, sustainable development and the management of the organization s health, safety, environmental, and social obligations, and responding to challenges commercial, financial, HR, legal, political, regulatory, operational, and force majeure that petroleum corporations often face with little notice. Learning is accomplished through lectures by IHRDC s exceptional faculty, group discussion of timely business case studies, and team participation in a challenging workshop in which participant teams are asked to develop and manage the organization and growth of the international affiliate of the NOC of the West African Republic over a 20-year simulated time frame. Teams select from a portfolio of opportunities at the outset and, as time progresses and more opportunities become available, they will decide whether to retain, sell, or expand existing businesses, invest in new business opportunities or bring in partners. At the same time they will respond to a number of events that could impact their portfolio. This workshop is ideal for executives and managers, as well as their advisors commercial, legal, financial, regulatory, project managers, sustainability specialists who wish to become active in the management of enterprises. Note: For our two-week public Advanced Petroleum Management Program please refer to page 10. Effective NEGOTIATING Skills Workshop (2 DAYS) This esteemed program provides participants with a practical understanding of the highly regarded negotiation process developed at Harvard University outlined in the book Getting to Yes. Participants will leave this program with a full understanding of the best practices of negotiating, whether they are used to negotiating a major business agreement or to settle a misunderstanding with a colleague. In the workshop setting teams of participants will negotiate positions in a realistic oil and gas case study to demonstrate and internalize the process. change management WORKSHOP (5 DAYS) In this workshop participants learn how to assess, plan, and implement large-scale business changes. Working with the latest change management principles, a systematic framework, and tools for effective change, participants develop both an overall strategic plan and a sample tactical change plan that is easy to understand by all stakeholders. In addition to these practical tools, participants will learn how to coach leaders through a change and how to support leaders in their role throughout the transformation. Effective Business COMMUNICATIONS Workshop (4 DAYS) This highly experiential workshop is designed to help participants become more polished, confident, and effective in their written and oral communication. In terms of presentations, participants will learn to represent themselves more effectively in today s highly competitive business climate. By delivering presentations, they will receive coaching in the practical tools necessary to create dynamic, professional presentations, organizing their content for maximum impact, interacting effectively with visual aids and creating a stronger connection with the audience so people will retain their message. In terms of writing, participants will learn to get important points across quickly by examining how best to target readers, select and organize information, use clear language, and be strategic in how to fix common errors and achieve a stronger business tone. The innovative writing techniques and practical tools can be applied to job-related memos, , letters, proposals, and reports. In summary, this business communication workshop will provide participants with easy-to-apply tools and strategies that they can implement immediately, resulting in stronger, more polished, and more effective business communication. STRATEGIC PLANNING AND IMPLEMENTATION (3 DAYS) This program is ideal for those seeking to enhance their knowledge of strategic planning and implementation. Participants will benefit from best practices utilized in the oil and gas industry today. The learning format consists of lectures, group discussions, and practical demonstrations and assignments that enhance the learning and allow participants to apply these practices immediately upon returning to their organizations. The program will examine the most current approaches to strategic planning and implementation such as setting vision and goals, effective implementation strategies, and utilizing a Balanced Scorecard. Major trends in the international oil and gas industry will also be discussed. LEADERSHIP SKILLS FOR HIGH PERFORMANCE ORGANIZATIONS (3 DAYS) This practical workshop will explore the leadership skills needed for high performance organizations and provide participants with the most effective management tools. It will provide an understanding of the key aspects of individual and team leadership along with an examination of effective managerial styles, organizational climate, goal setting, action planning, and leading change methodology. The program carefully combines presentations by a seasoned industry expert, engaging simulations, group discussions, case studies, as well as group work and assessments. Senior Management Leadership mentoring engagement This workshop consists of a training and consultation engagement for a senior management team that will enhance their leadership skills, cause them to successfully surmount their immediate challenges, and strengthen their capacity to lead their organizations far into the future. The four specific activities are: Preliminary Communications to identify the scope of the team s activities, key organizational measures, logistical planning, and distribution of 360 assessments; Individual Interviews with team members prior to the group meetings to gain background on strategic objectives and corporate culture (1-3 days); Leadership Sessions in which team members meet with the instructor, as a group, to reach consensus and alignment on an Action Plan that will stimulate leadership and promote enhanced performance (2 days); and Monitoring Sessions which take place one, three, and six months afterwards on-site or through teleconferences to monitor progress and recommend strategies to achieve enhanced performance and fulfillment of the Action Plan

19 The course was highly interactive and educational the exercises and lecturers made the learning process very enjoyable Participant Practical Instructional Format Experience Superb Learning with IHRDC-Invincible Energy For 30 years, IHRDC-Invincible Energy faculty has equipped traders, managers, consultants, and other players in the energy industry with the knowledge to understand and manage traded markets worldwide. IHRDC-Invincible Energy offers effective training on the commercial aspects of the oil industry. More than 5,000 delegates have attested to the combined quality of the instructors and the learning format: a carefully designed, practical workshop form of learning that incorporates a finely crafted balance of role plays, exercises, lectures, and discussions using real-time oil, gas, and electricity prices and markets to illustrate and enhance the learning of concepts and practices. Timely Topics IHRDC-Invincible Energy courses are designed with a sound set of working competencies across the downstream supply trading and price risk management chain. The courses cover all pertinent aspects of marketing, supply, logistics, trading, and price risk management in the oil industry. IHRDC-Invincible Energy also delivers private courses that can be tailored to a client s requirements, covering relevant topics and using case studies from the company s own business. Exceptional Locations IHRDC-Invincible Energy offers public courses in Cambridge, U.K., Geneva, Switzerland, Singapore, and other locations worldwide. The Møller Centre hosts IHRDC-Invincible Energy training courses in Cambridge, U.K. Located in Churchill College at the University of Cambridge, it is an ideal venue and provides delegates a unique experience by being a part of the collegial community of the historic University of Cambridge. The cultural and historic Cambridge city centre is within walking distance of the Møller Centre and is easily accessible by road, rail, and air. Delegates can experience punting down the River Cam, walking tours around the city, perusal of the art galleries, taking a College tour, enjoying a play at the theatre, or visiting Cambridge s many distinctive shops. Build an Enduring Network By participating in an IHRDC-Invincible Energy course, you will have the unique opportunity to meet colleagues from around the world, learn from their experiences in the industry, and create lasting relationships

20 FULL PROGRAM DATES: cambridge, U.K.: April 20 24, 2015 october 5 9, 2015 FULL PROGRAM DATES: cambridge, U.K.: april 27 May 1, 2015 october 12 16, WHO SHOULD ATTEND This course will benefit those new to the oil industry or moving into the commercial area from the upstream or downstream sectors. The program is also of interest to those who interface with the commercial aspects of the oil industry such as banks, accountancy practices, and other organizations. INSTRUCTORS Michael Jarvis, Dip C Eng Howard Skipp, BA, M Eng Phil Snaith, MBA Economics of the Oil Supply Chain During this five-day program, delegates explore the various activities of an oil company and the economic forces driving the oil supply chain. They will also learn the main areas of risk and opportunity from the crude oil supply terminal, through transportation, refining, and international trading to the refined product distribution terminal. Through exercises carried out in teams in Invincible s fictional refinery, delegates learn the quality aspects of product supply, refinery process economics, and the effects of upgrading. They will examine blending as a means to meet quality requirements at optimal cost and construct a processing deal. Additionally, the program provides an overview of international markets, trading, and different methods of price risk management. This program is an essential foundation for people entering the oil industry or for those with single-function experience looking to broaden their knowledge. It also forms the basic building block for the other Invincible courses. Numerous exercises are carried out in teams, with comprehensive debriefs studying the consequences of the decisions reached. LECTURE SESSIONS oil fundamentals Oil price history World supply and demand Structure of world markets Price formation and reporting crude oil Types of crude oil Evaluation of crude oils Crude oil markets Crude oil pricing oil refining Distillation and reforming Treating and conversion Cracking Refinery economics and optimization Blending Refinery margins logistics Scheduling oil supplies Stocks and storage Losses Inland distribution oil products Refined product quality and specifications Value of quality Downstream marketing transportation Oil tankers Freight and Worldscale Chartering a ship Pipelines markets and trading International oil trading Mechanics of trading Contracts for sale and purchase Costs of trading processing Processing deals price risk management Identifying exposure Futures Swaps Basic hedging techniques Trading Oil on International Markets This five-day program provides delegates with a comprehensive understanding of the economics of trading and the management of inherent price risks. Delegates will learn how to negotiate and cost deals, calculate profitability, charter a ship through a broker, and examine the legal and operational aspects of trading. They will also gain the skills to identify and manage risk by using futures, forwards, and over-the-counter markets. During the practical exercises, delegates work as part of a trading team and make decisions using real-time information and prices from Reuters trading screens and daily price reports from Platts and Petroleum Argus to manage and maximize the profit of a fictional trading book. Invincible s corporate position will be marked to market and reviewed on a daily basis, with comprehensive debriefs studying the consequences of the decisions made. LECTURE SESSIONS introductory material Introduction to trading and markets Price reporting Pricing mechanisms crude oil trading International pricing of crude oils Crude oil trading Brent / BFOE market products trading Mechanics of trading products Oil brokering Costings Comparing alternative outlets Arbitrage trading Valuing product quality contracts and trading Negotiating a deal Writing a contract Calculating the profitability of deals Spread trading Contango and backwardation Exchange for physical (EFP) Legal issues tendering Preparing and evaluating a tender chartering and freight Calculating freight costs using Worldscale Chartering a ship Calculating demurrage Freight exposure and swaps performance and credit Client /counterpart risk Documentation risk and exposure Identifying and minimizing risks in trading Price exposure Separation of price and supply risk management instruments Futures markets Forward markets Swaps and OTC markets Introduction to options Comparison of instruments risk management techniques Hedging with futures and swaps Basis risk Refinery margin management Technical analysis trading controls Managing a corporate position and mark to market 11 WHO SHOULD ATTEND This course will benefit those coming into trading from elsewhere in the industry; those in supply and marketing functions looking for a wider understanding of the market; those in oil companies, banks, law firms, accountancy practices, the media, and elsewhere who interface with traders and trading; and those moving into oil markets from the financial markets or elsewhere. INSTRUCTORS Sally Clubley, BSc (Eng) Michael Jarvis, Dip C Eng IHRDC-Invincible Energy s Howard Skipp assists with a workshop session at the Møller Center in Cambridge, U.K. 34 learn more or register for programs at 35