Course Details
Course Outline
10 days course
Introduction and the Tools of Finance
- Introduction
- Defining the Industry
- An Overview of the Course
- Financial Decision Making in the Oil and Gas Industry
- The Financial System
- A Review of the Tools of Finance
- Learning Summary
Governance and Agency Issues
- Introduction
- External and Internal Governance of Group Activities
- Trust: A Fundamental Requirement in Economic Relations
- The Domains of Corporate Governance
- Agency Issues in the Oil and Gas Industry
- Learning Summary
Interest Rates
- Introduction
- Interest Rate Risk
- The Term Structure of Interest Rates 3.4 Analysing Yield Curve Behaviour
- The Money Markets
- Term Instruments
- Types of Debt Security
- Learning Summary
Company Valuation
- Introduction
- Why Firms Merge
- Valuation Methods
- Estimating the Opportunity Cost of Capital
- Estimating the Cash Flow
- Estimating the ‘Exit Price’ or Terminal Valuenance for the Oil and Gas Industry
- Calculating the Net Present Value
- Valuing Growth Opportunities
International Finance
- Introduction
- Foreign Exchange Rate Risk
- Foreign Exchange Exposure
- Differences between Foreign Investment and Domestic Investment
- Financing Sources for the Multinational Oil Company
- Learning Summary
Equity and Commodity
- Equity Market Risk
- Commodity Price Risk
- Learning Summary
Capital Structure
- Introduction
- Capital Structure
- Capital Structure and Financial Distress
- Learning Summary
Project Finance
- Agency Costs in Financial Distress
- Causes and Costs of Financial Distress
- Routes out of Financial Distress
- Learning Summary
Derivatives: An Introduction
- Introduction
- Arbitrage Relationships
- Derivatives Markets
- Uses of Derivatives
- The Derivatives Building Blocks
- Learning Summary
Options
- Introduction
- Types of Option
- Option Pricing Boundary Conditions
- Risk Modification with Options
- The Black–Scholes–Merton Option Pricing Model
- Hedging and Derivatives
- Learning Summary
