Course description
The oil and gas market is a highly dynamic and volatile industry. Due diligence is a process that can be applied to all aspects of the oil and gas industry, including acquisition and divestiture decisions, asset production and value analysis. Due diligence is scrutinizing prospective assets to protect the parties to the transaction, ensuring that the acquired assets meet all financial, legal, and technical requirements. Before any acquisition occurs, every aspect of the company being purchased must be examined from top to bottom. The importance of properly understanding the company you are evaluating cannot be underestimated. You could lose your investment or fail to make profits if proper due diligence is not performed before an acquisition or divestiture decision.
What are the steps in the evaluation of the assets to be acquired?
Though every process of due diligence is unique, it is also quite extensive. Due diligence is performed both before finalizing the purchase agreement and after the closing. A buyer’s due diligence process often starts before a purchase agreement is signed in the oil and gas business. How much research a company should do before signing an agreement will depend on many factors, including the size of the acquisition and the seller’s level of cooperation. Due diligence in oil and gas business acquisition is the ongoing process of examining a potential transaction’s business operations to verify that it is worth buying. The goal is to discover and address problems before signing a binding contract when it may be difficult or costly to back out of the deal. It can include anything from examining financial documents and reviewing sales brochures to visiting the site of an asset, performing land due diligence, environmental due diligence, and much more.
Upcoming start dates
Suitability - Who should attend?
Who should attend?
Rcademy’s Due Diligence in Oil and Gas Business Acquisition Course is suitable for many professionals of Oil and Gas industry:
- Departmental heads/managers
- Project managers
- Business architects
- Enterprise analysts
- Management consultants
- Product Manager
- Business analysts
- Graduates
- Learners and scholars
- Business managers
- IT analysts
Outcome / Qualification etc.
Rcademy’s Due Diligence in Oil and Gas Business Acquisition course is aimed at the following objectives:
- To gain an understanding of fundamental concepts of due diligence required in Oil and Gas business acquisition
- To gain an overview of the steps involved in Oil and Gas business acquisition
- To explore the necessity of evaluating the assets and devising an appropriate asset strategy
- To understand the different risks and challenges involved in business acquisition concerning Oil and Gas industry
- To understand upstream, and downstream transactions and operations
- To gain an understanding of different types of due diligence
- To recognize key factors in different types of due diligence
- To identify challenges faced during Oil and Gas business acquisition
- To be active and better prepared with thorough working knowledge of the potential target
Training Course Content
Module 1: Introduction to Due Diligence
- Industry Due Diligence
- Due Diligence checklist
- Principles of Due Diligence
- Purpose of Due Diligence in business acquisition
- Requirements for Due Diligence
Module 2: Due Diligence in Oil and Gas M&A
- Need for evaluating acquisitions
- Designing asset strategy
- Risk of improper Due Diligence
- Risks Involved in Oil and Gas Acquisition
- Types of assets in Oil and Gas
Module 3: Steps in Oil and Gas Acquisition
- Steps before purchase: reviewing bid package, review regulatory filings
- Due Diligence by the engineering department
- Measuring economic viability
- Due diligence post-closing
Module 4: Due Diligence in Upstream Transactions
- Upstream purchase agreement
- Defects in the purchase agreement
- Goals in Upstream M&A
- Recognizing the red flags
- Types of Due Diligence in Upstream M&A
- Environmental Due Diligence
Module 5: Land Due Diligence
- Reviewing multiple data points
- Lease and well exhibits
- Allocated values
- UCC and lien searches
- Litigation searches
- Hard and soft consent
Module 6: Contract Due Diligence
- Determining the economic impact of the contract
- Determining the operational impact of the contract
- Transfer Restrictions
Module 7: Corporate Due Diligence
- Examining the seller’s operation
- Reviewing litigations
- Entity transactions
- Organizational documents
- Financial review
Module 8: Purchase and Sales Agreement of Oil and Gas Acquisition
- Components of Purchase and Sales Agreement: description of assets, covenants, etc
- Title defects
- Upstream Oil and Gad Joint venture structures
- Exit events
Module 9: Challenges in Oil and Gas Acquisition
- Asset acquisition vs equity acquisition
- Elements of the acquisition agreement
- Purchase price adjustments
- M&A closing conditions
Module 10: Preparing for Due Diligence
- Determining the value of an asset
- Determine the Defect threshold
- Identifying problems from the buyer’s and seller’s perspective
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