After learning about the fundamentals, delegates will cover the valuation of crude oil. Ocean tanker transport and freight will be explored together with an overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Key aspects of product quality will be covered together with the major refining processes needed to achieve them. The course moves on to cover oil markets and pricing, oil trading contracts, and an introductory guide to paper markets and hedging using futures.
Course Objectives
- How to value crude oil based on product market prices
- How to evaluate spot tanker freight costs
- How to evaluate crude netbacks and refining margins and alternative crude breakevens
- How tankers are chartered
- How spot oil purchase/sale contracts are structured
- How a refinery is structured
- The significance of non-tanker logistics – pipelines, storage, rail and road
- Key points on product quality; how key specifications are met
- Fundamental economic drivers of the supply chain
- How the international crude oil and products markets are priced
- Futures markets: characteristics and use
- The basic use of hedging within a trading environment
Course Content
Market Fundamentals
Crude Oil
- Types
- Assay
- Yield
- Crude value
- Calculation of gross product worth and netback
The Refinery
- Structure of simple, upgrading and complex refineries
- Description, function and yields of the various refining processes
- Refining costs and refinery margins
- Future refining issues
Product Quality
- Key specifications for main product grades
- How quality specifications are achieved
- Cost implications of quality
Logistics
- Tanker freight & Worldscale
- Chartering
- Pipelines, terminals and storage
- Oil losses
Contracts
- Formulation of the contract
- Oil contract purchase and sale terms
- The tanker contract (charter-party)
Oil Markets
- Nature of pricing mechanisms and price reporting
- Crude oil markets
- Products markets
- Forward markets
- Futures markets
- Introduction to derivatives
- Use of hedging
Exercises and Case Studies will include:
- Gross product worth
- Freight
- Netback, refining margin and breakevens
- Quality & specifications
- Blending
- Pipeline economics
- Price Exposure
- Hedging
Who Should Attend?
New entrants to the oil industry, and staff from integrated functions such as supply, trading and logistics, Managers changing disciplines into the midstream or downstream
Professional personnel inside and outside oil companies who interface with supply, refining, trading and transportation functions and who need an understanding of this sector, such as legal, banking, insurance, finance and production.
5 Days
Course Fees (VAT Included)
Lagos/PH/Abuja: ₦ 483,750.00
UK/US/Ghana/Dubai: $4,837.50
- Award of Certificate.
- Professional Training Materials
REGISTRATION PROCEDURE
- Go to “Register Now” button and fill the form and send it. You will get “message sent” if it is successful.
- You will get confirmation of your registration within two working days when you will be asked to go ahead and make payment.
- Go ahead and make payment.
- Send your name, phone number, email address, training location, amount paid to info@sbtpetroleum.com.ng OR SMS to +2349098171437.
- Upon confirmation of your payment, an electronic receipt will be sent to your mail.
- A joining instruction will be sent to you at least 72 hours before the training date an time.
- Looking forward to training date to commence your training. However, if a need to change the dates of the training arises, you will be notified immediately. This may be due to unavailability of the instructors or due to unavoidable logistic challenges.
ACCOUNT DETAILS
NAIRA ACCOUNT
BANK: ECOBANK
ACCOUNT NAME: SBT PETROLEUM GEOSCIENCE LIMITED
ACCOUNT NUMBER: 1613062169
BRANCH: Chevron Branch
SORT CODE: 050150340
DOLLAR ACCOUNT
BANK: ECOBANK
ACCOUNT NAME: SBT PETROLEUM GEOSCIENCE LIMITED
ACCOUNT NUMBER: 1613062183
BRANCH: Chevron Branch
SORT CODE: 050150340