UPSTREAM RISK MANAGEMENT AND FUNDING
Balancing Technical, Commercial, and Financial Risks in Oil & Gas Exploration Projects
Course Schedule
| Date | Venue | Fees (Face-to-Face) |
|---|---|---|
| 10 – 14 Nov 2025 | London – UK | USD 3495 per delegate |
Course Introduction
Upstream oil and gas projects are exposed to some of the most complex and capital-intensive risks in the energy sector—from geological uncertainty and operational hazards to regulatory, market, and financial volatility. Effective risk management is essential for securing funding, ensuring regulatory compliance, and maximizing asset value.
This course equips professionals with the knowledge and tools to identify, assess, mitigate, and fund risks across the upstream project lifecycle. It provides a practical understanding of technical and commercial risk frameworks, project economics, and how to structure financing strategies that align with stakeholder expectations and investment risks.
Course Objectives
By the end of this course, participants will be able to:
• Identify key technical, regulatory, and commercial risks in upstream oil & gas
• Apply risk assessment frameworks to exploration and development projects
• Analyze project economics and investment risk profiles
• Structure financing options including equity, debt, and farm-out agreements
• Integrate risk management with funding decisions and project governance
Key Benefits of Attending
• Gain a strategic understanding of upstream project risk types and their financial impacts
• Learn to evaluate project economics and make risk-informed investment decisions
• Understand how to negotiate funding structures aligned with project risk levels
• Enhance your ability to secure capital through transparent risk disclosure and mitigation
• Apply lessons from real upstream project successes and failures
Intended Audience
This program is designed for:
• Project managers and asset development leaders
• Exploration geologists and reservoir engineers
• Corporate finance and investment analysts in the energy sector
• Energy bankers, lenders, and equity investors
• Regulators, advisors, and policymakers involved in upstream approvals
Individual Benefits
Key competencies that will be developed include:
• Upstream project risk identification and profiling
• Quantitative and qualitative risk assessment techniques
• Linking risk analysis with funding strategy and investment terms
• Financial modeling and sensitivity analysis
• Stakeholder engagement and investor communication
Organization Benefits
Upon completing the training course, participants will demonstrate:
• Improved ability to assess upstream investment risk and opportunity
• Stronger alignment between project planning, risk controls, and financing
• More robust risk mitigation and disclosure for investors and regulators
• Reduced capital exposure through structured risk allocation and funding models
• Enhanced transparency and credibility in upstream project proposals
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
• Strategy Briefings – Exploration risk, upstream funding models, and regulatory requirements
• Case Studies – Real-life upstream projects with varying risk/funding outcomes
• Workshops – Risk mapping, funding structuring, and economic modeling exercises
• Peer Exchange – Discussions on funding and risk mitigation strategies in global markets
• Tools – Risk matrices, economic model templates, financing term sheets, and reporting formats
Course Outline
Detailed 5-Day Course Outline
Training Hours: 7:30 AM – 3:30 PM
Daily Format: 3–4 Learning Modules | Coffee breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Introduction to Upstream Project Risk Landscape
Module 1: Overview of Upstream Project Risk (07:30 – 09:30)
• Exploration, development, and production risk categories
• Risk characteristics in conventional vs. unconventional projects
• Industry benchmarks and failure trends
Module 2: Regulatory and Political Risk Factors (09:45 – 11:15)
• Licensing, approvals, and host government agreements
• Environmental and ESG compliance risks
Module 3: Workshop – Upstream Risk Identification (11:30 – 01:00)
• Build a risk register for an exploration or appraisal project
Module 4: Peer Exchange – Risk Experiences in Global Markets (02:00 – 03:30)
• Discussion on regional project environments and risk levels
Day 2: Risk Assessment and Economic Modeling
Module 5: Quantifying Technical and Commercial Risks (07:30 – 09:30)
• Geological uncertainty, drilling risks, and production variability
• Market price volatility and sales contract risk
Module 6: Introduction to Project Economics (09:45 – 11:15)
• Cash flow modeling, NPV, IRR, and breakeven analysis
• Project sensitivities to cost, price, and volume
Module 7: Workshop – Risk-Based Economic Model (11:30 – 01:00)
• Build a basic economic model with risk inputs
Module 8: Case Study – Cost Overruns and Project Viability (02:00 – 03:30)
• Explore a scenario where risk impacted financial performance
Day 3: Upstream Financing Structures and Risk Allocation
Module 9: Upstream Funding Options (07:30 – 09:30)
• Sources of capital: internal, debt, equity, and project finance
• Structuring farm-ins, joint ventures, and production sharing
Module 10: Risk Allocation in Contracts and Agreements (09:45 – 11:15)
• Sharing technical and financial risk through legal structures
• Risk-adjusted return expectations by capital providers
Module 11: Workshop – Structuring a Farm-Out Agreement (11:30 – 01:00)
• Draft a deal that balances funding needs and risk-sharing
Module 12: Peer Exchange – Investor Concerns in Emerging Markets (02:00 – 03:30)
• Group insights on project bankability and funding criteria
Day 4: Risk Mitigation and Monitoring
Module 13: Technical Risk Mitigation Strategies (07:30 – 09:30)
• Appraisal planning, drilling programs, and technology selection
• Contingency planning and reserve classification
Module 14: Commercial Risk Mitigation (09:45 – 11:15)
• Offtake agreements, hedging, and insurance
• Fiscal terms and stabilization clauses
Module 15: Workshop – Risk Monitoring Dashboard (11:30 – 01:00)
• Design a dashboard to monitor upstream project risk in real-time
Module 16: Case Study – Successful Mitigation in a Frontier Project (02:00 – 03:30)
• Review how structured mitigation enabled financing
Day 5: Investment Readiness and Stakeholder Engagement
Module 17: Preparing for Investment Approval (07:30 – 09:30)
• Project justification, risk-adjusted returns, and readiness criteria
• Integrating risk into board and lender decision frameworks
Module 18: Communicating Risk and Funding Plans (09:45 – 11:15)
• Risk disclosures in investment memos and pitch decks
• Investor and lender Q&A preparation
Module 19: Final Project – Risk-Funding Strategy Presentation (11:30 – 01:00)
• Present a risk-aligned funding plan for an upstream development
Module 20: Course Wrap-Up and Certification (02:00 – 03:30)
• Certification, Q&A, and key takeaways
Certification
Participants will receive a Certificate of Completion in Upstream Risk Management and Funding, validating their ability to assess and manage exploration and development risks while structuring effective and sustainable funding solutions.