Training Course:

International Oil Supply, Transportation,

Refining & Trade
5 - 9 December 2021
Kuala Lumpur (Malaysia)
Royale Chulan Kuala Lumpur
 Training Course:
International Oil Supply, Transportation, Refining & Trade

Training Course code: EN6077 From: 5 - 9 December 2021 Venue: Kuala Lumpur (Malaysia) - Royale Chulan Kuala
Lumpur Training Course Fees: 5940 € Euro

Introduction
This 5-Day accelerated PetroKnowledge course is designed to give participants a comprehensive picture of the
international oil supply, transportation, refining and trade. Further, This Oil & Gas training course will include crude
oil and refined markets, risks, legal and regulatory issues involved in the international trading of crude oil and
refined products. The course is presented with the wide range of essential practices of petroleum industry
spanning, exploration, extraction, refining; and global oil supply, reserves, production & trade flows. With the
overview of these essential upstream and midstream practices, the industry downstream operations dealing with
crude oil and refined products trading and its associated risks and uncertainties can be fully understood. Since
price volatility always exists, the Price Risk Management appropriate techniques are presented in detail. Sales,
Marketing, Trading and Risk Management are crucial and also the most dynamic parts of the value chain, and
extremely important for managers to stay on the top of these activities.

This training course will feature:

Essential success factors in exploration, production, and transportation of oil

Important elements of petroleum refining and its economics
Improving refinery economics and overall profitability of oil business
Focusing on strategic planning and tactics to reduce corporate risk
Logistics of international supply, transportation and storage of oil
Practical aspects crude oil sales, marketing and trading

Course Objectives of International Oil Supply, Transportation, Refining & Trade

What are the Goals?

By the end of this training course, participants will be able to:

Understand Upstream oil exploration, production & supply principles and practices
Understand refining process, compute refinery gross and net margins
Understand LP models, and develop crude oil selection criteria
Apply petroleum economics, calculate financial benchmarks and prioritize projects
Estimate costs, negotiate and compare physical deals and help write contracts for the sale of crude oil and
refined products
Use Worldscale reference to charter a ship and to calculate the profitability
Understand the international markets, their risks and how prices are formed and disseminated
Understand the hedging instruments, determine the price risk exposure and manage price risk.
Acquire legal and regulatory issues relating to the International aspects of oil trading

Target Audience of International Oil Supply, Transportation, Refining & Trade

Who is this Training Course for?
This training course is suitable to a wide range of professionals but will greatly benefit:

Business Development managers

Corporate Planning professionals
Lawyers & law firms’ personnel
Geoscientists & Engineers
Refiners
Bankers, accountants
Auditors
Members of Board and Senior Oil Executives
Media personnel who interface with traders and trading
Government regulators
Tax & finance advisors
Auditors
Compliance officers
Equity & Financial Analysts and Bankers
Joint Venture officers
Contract Negotiators

Course Outlines of International Oil Supply, Transportation, Refining & Trade

Day One: Essential Upstream Practices

Introduction to the course

Introduction to how oil was formed
Origin, Accumulation And Migration Of Petroleum
Essential Requirements For Hydrocarbon Accumulation
Fundamentals of Oil & Gas Geology and Petroleum Engineering
Introduction To Oil & Gas Geology
Simple Anticline Structural Trap
Barrier or Closure - Reservoir Traps - Reservoir Mapping
Oil & Gas Drilling Techniques
Types Of Drilling - Exploration, Delineation, Appraisal, Developmental, Maintain Potential Wells
Drilling Circulatory System - Safety And Environmental Impact
Well Logging and Well Completion
Tools and Techniques for Evaluating Oil & Gas Wells
Open and Cased Well Logs
Functions of Well Casing
Benefits of Horizontal Well over Vertical well - Multilateral Well Completions
Essence of International Oil Supply - Global Reserves, Production & Trade
Introduction to global oil business - Exploration, Extraction, Refining, Marketing, Transportation
Global Oil Resources - World Oil and Gas Reserves, Production of Oil and Gas
Industry units - for the USA, Europe and Asia, Conversion factors
Crude Oil Classifications
Crude Oil Quality Indictors, crude oil characterization by Assays
Crude Oil Distillation - Refined Products
Oil Industry Units and Conversion factors
Fundamentals of Oil Economics
Delivered price of crude oil - the concept GPW Gross Product Worth
Net Refining Margin calculation
Value of Crude Oil and the Determining Factors in Crude Selection
Day Two: Crude Oil Trading

The Evolution of International Oil Pricing System - The Big Picture

Introduction
Evolution of Crude Oil Pricing System
The Era of the Posted Price
The Pricing System Challenged by Independent Oil
The Emergence & Consolidation OPEC Administered Pricing System
The Changing Landscape for IOC’s/NOC’s
The Collapse of the OPEC Administered Pricing - Net Back Pricing
The Market-Related Oil Pricing System and Formulae Pricing
Spot Markets, Long Term Contracts and Formula Pricing
Benchmarks in Formulae Pricing
Oil Price Reporting Agencies and Price Discovery Process
The Brent Market and its Layers
The US Benchmarks
The Dubai-Oman Market
Trading Physical Crude Oil and its Logistics - Chap 2 CON
Trading Fundamentals and Trading Terminology
Impact of Production Sharing Contracts and its components
Fiscal Tools
Cost Recovery Component
Profit Oil Component
Royalty and Tax
Tax Implications - Ring Fencing
Market Price
Joint Operating Agreements
Transportation Agreements
Tariffs
Value Adjustment Mechanism
Terminal Logistics
Floating Platform Storage Operations
Crude Oil Lifting Agreements
Marine Vessel Nomination
Physical Sales and Purchase Agreements
Freight Contracts
Freight Costs
Laytime
Demurrage
The Dissection of Crude Oil Price
First Component - the Absolute Price
What are Benchmark crudes
Brent
WTI
ASCI
Dubai/Oman
TAPIS
ESPO
Criteria for Ideal Benchmarks
The Regulation of Benchmark Crudes
Determination of Absolute Value of Crude
Forwards and Future
 Brent Chains
Credit Security and Forward Market
The Futures Market and Absolute Value of Oil
Initial Margin
Variation Margin
Physical Delivery
Exchange for Physical Delivery
Hedging the Absolute Value of Crude Oil
Basic Hedging Theory
Practical Considerations
Dated Brent Risk Hedged with Forward Brent Contract
Floating Priced Hedging
Speculation
Oil Price Formula - The 2nd Component - Time Differential
Arbitrage
Swap - the “Contract for Difference”
What is the right time to set the price?
What goes on when two traders transact a deal?
CFD and the time value in Oil Price
Value Fixation
Floating Fixing or Hedging value of Oil
Hedging and the Slope of the Forward Oil Curve
The Term Contract Pricing of Oil
Oil Price Formula - The 3rd Component - Grade Differential
The Crude Oil Grade
The Crude Oil Quality
The Crude Discount
The Refining Assay
Paraffinic
Naphthenic
Refining processes
The Gross Product Worth
Location and Freight
Price Risk Management - Hedging the Crude Oil Price
The Types of Risks
The Strategic Hedging
Operational Hedging
Risk Management Considerations
Correlations and Basis Rick
Tax Basis Risk
Choosing The Right Tools
The Company Risk Profile
The Company Risk Appetite
Market Price View
When to Close a Hedge
When Strategic Hedge Go Operational
Swaps
Options
Premium
Option Style
Option Strategy
The Zero Cost Collar
 Option Valuation
Summary

Day Three: Refined Products Trading

The Trading Refined Products

Light Distillate
Middle Distillate
Fuel Oil
Other products
Participants in Refined Products Trading
Arbitrage
The 24/7 Market
The Roll of Traders
The importance of Location
Transportation and Operations
Pricing and the Netback War
Pricing Policies Latest Trends
Price Fixing
Storage
Types of Oil Products
Supply/Demand Balance
Production, Consumption and Refinery Capacity
Light Distillate

Middle Distillate
Fuel Oil
Other products
Future Trends
Environmental Products
Refining I - Basics
Simple Chemistry for Non-Chemists
Paraffin
Olefins
Napthenes
Aromatics
Catalysts
Crude Oil Properties
API and Sulfur
Acid
Salt
Water
Metals
Other
The Crude Oil Assay
Basic Refining Processes
Separation
Treatment
Upgrading Conversion
Blending Refinery Economics
Gross Product worth
GPW and refiner Margin
 Team Work
Refining II - Conventional Refinery Upgrading
Cat Cracking
Hydrocracking
Visbreaking
Coking
Oil Products and their Qualities
Physical Oil Products and the Grade Value of Crude
Quality
Petroleum Gases
Methane
Ethane
Propane
Butane
Light Distillate
Naphtha
Gasoline
Middle Distillate
Kerosene
Gas Oil
Diesel
Fuel Oil
Straight Run Fuel
Cracked Fuel Oil
LSWR
Bunker Fuel Oil
Specialty Products
Lubes
Waxes
Bitumen
Coke/Carbon Black
Oil Logistics and the Art of Trade
Delivering Oil Products
Shipping
Pipeline
Rail Car
Road Truck
Delivery Term
Other Pricing Bases for Refined Products
Oil Contracts
Split Weekends
Counterparties
Grade/Quality
Quantity
Delivery
Price
Payment Clause
Irrevocable Documentary Letter of Credit
Standby Letter of Credit
Parent Company Guarantee
Open Credit
Dispute Resolution
 Nominations
Vetting
Storage
The Price of Refined Oil Products
History of Oil Prices and How the Benchmarks evolved
The Components of the Oil Price
The Absolute Value of Products Price: the Role of Benchmark
The Characteristics of Bench Marks
Choosing the Right Benchmark: Price Reporting Agencies
The Bid-Offer Spread
Regulatory Oversight?
The Regulatory Investigation
The Time Differential Value of Product Price
Bulls and Bears
The Contango Arbitrage
Trading the Time Spread: Contango without Getting Physical
The Value of Product Grade Differential

Day Four: The Risk Management

Oil Products Price Risk Management

Measuring Risk
Strategic Hedging
What is a Hedge
What is a Hedge Loss
Hedging and Speculation Compared
The Role of Risk Manager
Operational Hedging
The Long and the Short of it
Opening and Closing Hedges
Basis Risk
The Forward Market
The Future Market
The Swaps Market
The Options
The Size of the Premium
The Option Style
The Zero Cost Collar
Crack Spreads

Day Five: Legal and Regulatory

Legal and Regulatory Issues

Contractual
Regulatory
International
International Aspects of Oil Trading
Special Trade Terms
Standardization of Terms
International Sales of Goods
General Trade Laws
World Trade Organization
 Financial Issues
Banks’s Role
Shipping Laws
Marine Insurance
Dispute Resolution
Impact of National Laws
US an UN Trade Sanctions
Sovereign Immunity
United States
Oil Trading in the US
General Commercial
Anti-Trust Legislation
Sovereign Immunity Act
Foreign Corrupt Practices Act
Commodity Trading Law
Specific Contracts
Futures & Options Contracts
Exchange of Futures for Physical EFP
Swaps
United Kingdom
Oil Trading in the UK
General Commercial Law
Competitive Law
Finance and Banking Law
Protection of Trading Interest Act
Financial Services Law
International Petroleum Exchange
Singapore
Oil Trading in Singapore
Singapore Exchange
Comparison with London and New York
Controlling Financial Risk
What is trading Risk?
Other Potential Sources of Loss
What are Characteristics of Energy Markets
Determination of Risk
Operations
Conclusions
 Registration form on the Training Course:
International Oil Supply, Transportation, Refining & Trade
Training Course code: EN6077 From: 5 - 9 December 2021 Venue: Kuala Lumpur (Malaysia) - Royale Chulan
Kuala Lumpur Training Course Fees: 5940 € Euro

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