UNIT THREE
September 27 - October 1, 2010
LECTURE
PETROLEUM PROJECT DEVELOPMENT
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; constructions 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/tolerance, due diligence, accountability, liability; integrated health, safety, and environmental management systems, international standards, ISO 14001 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; case studies.
WORKSHOP
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. Then, decisions will be run over 15 years of simulated operations for the “business game” environment.
WORKSHOP SESSIONS INCLUDE:
- Project description, management and market analysis
- Project economics and proforma analysis
- Project schedule and management plan
- Identifying the project risks
- Reviewing the financing term sheet
- Design the project financing
- Review the fuel supply and power
sales agreements - Evaluation of performance and presentation of results