Economics of the Oil

and Gas Industry

Who should attend

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

Managers of oil and gas companies and divisions, who need general
understanding of economic aspects

Economists of the oil and gas companies, who need deeper understanding
of tax reforms in RF

Financial analysts of the oil and gas industry

Operating managers who need basic understanding of investment projects

and business valuation

Sales specialists who need to acquire a comprehensive perspective

on the economic aspects of a companys operations.

Objectives

To provide an understanding of the general economic concepts

of the activities of an oil and gas industry

To prepare participants for specialized trainings on investment projects

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

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

Training outline
Day 1

Day 3

Introduction

Investment projects in the oil and gas industry

and their evaluation

Economic specifics of the oil and gas industry

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

of hydrocarbons: Downstream activities

Natural gas production, transportation

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

to international classifications
Stages of the investment cycle of oil field

development
Prediction of volume of oil production

Price considerations for crude oil and natural gas

Exchange trade; standards brands of crude oil
OPEC decisions and influence of independent

producers
Historical retrospective and forecast

of oil and gas prices

Hedging of crude oil price changes with

financial derivatives: forwards, futures

and options

Day 2
Basics of taxation in the oil and gas industry
Legal forms of agreements and taxation in oil

and gas industry: international practice and RF

specifis
Tax on commercial minerals extraction (CME),

export duty and excise fees as economic

leverages to stimulate high quality fuels
production and industry development
New approach to O&G industry taxation in RF

Sources of financing in the oil and gas industry

Equity and debt financing: recommendations

for combined financing

Weighted average cost of capital (WACC)

Financial accounting, budgeting and financial

analysis
Costs capitalization principle and DDA

Forecasting of net cash flows, accounting

for inflation
Discounting forecasted net cash flows (NCF)

recommendations for discount rate selection

Net present value (NPV) calculations
Other methods of investment projects evaluation

Business valuation of oil and gas companies

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

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

Certificates
Certificates of the EY Academy of Business.

Place and time

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

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

Recommended training scheme

Introduction to the Oil and Gas Industry
Oil and Gas Economics
Investment Project Evaluation in the Oil and Gas
Industry
Risks in the Oil and Gas Industry: Evaluation
and Management
Accounting in the Oil and Gas Industry
(IFRS/US GAAP)
Planning and Budgeting in the Oil and Gas Industry

calculations in upstream
Basics of budgeting, Net-back Price (NBP)

calculations and practical application

Financial ratios for O&G VICs (vertical integrated

companies): examples of their calculation and

analysis

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