Process Plant and Refinery Operational Economics, Planning and Profitability Training
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Process Plant and Refinery Operational Economics, Planning and Profitability Training Course
Introduction:
Course Objectives:
This program will lead delegates through the complete economic and financial life cycle of a refining project & operations, from inception to project close. Each stage will provide participants with the understanding, skills, and techniques for the successful management of their refining projects and operations.
· Prepare and present the business case & financial plans for a refinery project
· Understand how refineries’ profit depends on location and configuration
· Evaluate the economic strength of refinery installations.
· Improve your understanding of the value of refinery investments
· Learn how to interpret published information on the refining industry
· Discover how to improve the profitability of a refinery
Who Should Attend?
Personnel who are involved in managing operations and projects and/or teams and departments, technical professionals involved in research and development, product design, engineering, and other scientific and technical work who are from private and public sector oil & gas companies, including R&D, HR, engineering and manufacturing, project managers, product development specialists, and other members of technical, commercial and service operations.
Course Outlines:
Financial Management for the petroleum industry
- Financial management objectives
- Inter-relationships of oil prices, interest rates, capital investments, and debt
- Managing risks in the petroleum industry
- Introduction to valuation: the time value of money
- Discounted cash flow valuation
Global oil market outlook
- Energy supply and demand
- Crude oil prices
- Investment and trade flows
Refined products supply and demand
- Refined products applications
- Pricing sensitivity of consumption
- Breakout by sector and regions
- Historic supply and trade requirements
- How supply and demand affect pricing
Light/heavy differential
- Definitions of light/heavy products
- How different products track each other
- Implications for refineries and investments
Refined products trade and transport
- Import and export markets
- Petroleum shipping: ships size, type, and shipping costs
- Effects on refinery profitability
Refinery assets, evaluation
- Asset value explanation
- Replacement value and fair market value
- Methods of determining value: cost-based, income-based
Refinery new investments/projects
- Project analysis and evaluation
- The financial and business drivers behind projects
Preparing the business case and the project proposal
- How to prepare and present a business case for the project
- Understanding investment, cash flow and budgets
- Financial quantification of project benefits and pay back
- Operating within financial and budgetary constraints
Operating cost
- The capital cost of process equipment
- Economies of scale
- Capital cost estimates
- Fixed and variable operating costs
The profitability of a refinery
- Operation margins
- Calculation of profit margins
Financial control of refinery and financial appraisal
- Conducting a pre and post-implementation financial appraisal
- The financial close of the project
- Creating an action plan for the realization of project benefit
- Managing the realization of benefit
- Operational hand-over from a financial perspective