Upstream portfolio management

We are pleased to offer a 3 day course in portfolio management for the upstream, i.e. exploration and production, oil & gas business. The course outline is shown below, and can be adapted to the requirements of individual clients.

Day 1 – Portfolio management: concepts & principles

Participants’ introductions and goals

Objectives & benefits of portfolio management

Defining a portfolio

Key concepts

  • Portfolio hierarchy – project, asset, licence, basin, business, corporate
  • The portfolio database structure
  • Quantitative portfolio elements – risk, cost & reward

Recap of key economic concepts: NPV, EMV, IRR, ROCE

Resource & reserve definitions

Portfolio segmentation

  • NBD
  • Exploration
  • Development and production
  • Downstream

Exercise 1 – the relation between strategy and portfolio

Project management and the portfolio

  • Project mgt framework
  • The portfolio funnel
  • Case studies

Day 2 – Portfolio assessment: techniques and tools

Recap of day 1 and participants’ learning points

Risk management

  • The risk matrix & risk register
  • Risk assessment – Above ground
  • Risk assessment – Below ground

Volume and value assessment

Portfolio modelling

  • Principles
  • Portfolio modelling tools
  • Case studies

Exercise 2: Building an optimized exploration business plan

Modeling production profiles

Portfolio and project characterization in charts

Day 3 – Portfolio management: the organizational & business context

Recap of day 2 and participants’ learning points

Decision making in a portfolio context

The portfolio management team – structure & role

  • Organisational culture
  • Value assurance and quality control
  • Role of the assurance team
  • Role in the project management framework
  • Individual portfolio elements (Projects)
  • Portfolio reviews

Venture performance plans: a multi-year perspective

Annual business plans; defining performance targets & scorecards

Exercise 3: performance targets

Summary

Next steps

  • Check against participants goals
  • Change management plan
  • Participants learning points

Key information:

The course fee includes 3 days delivery and up to 2 days of preparatory teleconference with management to agree course emphasis and tailor the content.

Course presenter: Dr Mike Naylor

Course Duration: 3 days

Max Participants: 25-30

Deliverable: Worldwide