Euromoney Training

Course Directors: Ms. Meg Osius and Mr. Andreas MaestleDate: 25 - 29 January 2009Venue: Dubai, U.A.E.

EUROMONEY TRAINING EMEAA division of Euromoney Institutional Investor PLC

Duba

i

Oil, Gas & Power Project Finance


A five-day intensive training programme with workshop sessionsincluding case studies and a day-long cash flow modelling session.

Participants will learn about:

• Structuring Oil and Gas, Power and Desalination Projects

• Accessing the Most Competitive Sources of Funding

• Key Legal Risks in Energy Projects

• How to Work with Export Credit Agencies and Multilateral Institutions

• Using the Capital Markets for Energy Transactions

• Cross-Border Leasing of Oil Rigs and Other Facilities

• Managing Interest Rate, Currency and Commodity Price Volatility

with Derivatives

• Cashflow Workshop: Modeling Risks of an LNG Facility

This programme is available in-house. For further information please contact Ms Anna Jakimova

[email protected] +44 207 779 8085



“The lecturer was reallyexcellent......she made a really

clear, structured course”

Past Delegate Siemens


Dubai, U.A.E.Euromoney Training EMEAPublic, sponsored and in-house training

Euromoney Training EMEA is a division ofEuromoney Institutional Investor Plc, a leading world provider of business-to-business financial information.

We offer over 300 public programmes inmore than 40 countries across Europe,Middle East and Africa, with all coursesavailable in-house on request.

Public programme calendars are availablefor each region.

Working together – co-host a publicprogramme in your countryYou will benefit from: • highly cost effective training • a share of the publicity in bringing an

international, high level event to your region.

Choose any programme from our portfolio and let us know how many peopleyou have - a small group of 3 or up to 30.

Hotel BookingIf you require assistance with booking accommodation for one of our courses,please contact our logistics team on +44 207 779 8543 or email [email protected] the course you will be attending,the venue and the dates you wish to stay.

In-house training Our in-house courses offer a highly cost-effective training option for youand your clients. We can deliver all ofour programmes in your chosenlocation at a time which is convenientfor you.

For further information, pleasecontact:Ms Anna JakimovaDirector of Euromoney Training EMEATel: +44 207 779 8543Fax: +44 207 779 8140Email: [email protected]

1 tel: +44-20-7779 8543 2 fax: +44-20-7779 81403 e-mail: [email protected] 4 web: www.euromoneytraining.com/middleeast5 mail to: Euromoney Training EMEA, Nestor House, Playhouse Yard, London EC4V 5EX, UK

5 easy ways to register and obtain further information

COURSE OBJECTIVEThis advanced program is designed to increase participants' understanding of the process that leads to thecreation of suitable financial structures for large projects in the oil, gas and power sectors in the MiddleEast and North Africa. Lectures include many recent examples from Qatar and elsewhere of structuredfinancing techniques used in creative ways to provide the necessary support and security for lenders equitypartners and other energy investors. Numerous sources of funding and credit enhancement are describedas well as approaches to assembling the most competitive funding packages.

By the end of the program participants will have developed a framework for recognising, and analysingqualitative and quantitative project risks. They will have examined the ways in which projectresponsibilities and rewards can be allocated among various project participants. And they will haveexperimented with different financial structures, and modelled project outcomes with cash flow models.They will also be familiar with Export Credit and Multilateral Agencies and even Private Sector Insuranceprograms for providing debt, equity, guarantee, and insurance support for projects. The use of capitalmarkets as a source of attractive funding, including eurobond issuance, 144A private placements and othersources of funding is also explored extensively through discussion of innovative deals and numerousexamples drawn from around the world.

On the program’s fifth day participants will participate in an additional stand-alone cash flow modellingworkshop. In a hands on session using software developed by "ProFin Tools” they will create a model for anLNG Plant suitable to examining project debt capacity as well as return on investment, under variousproject outcomes

WHO SHOULD ATTENDThis workshop has been designed specifically to meet the needs of new or recent Project Financiers, orthose who simply wish to consolidate their knowledge in the areas of evaluation, funding and riskmanagement of projects. The programme will appeal to delegates involved in the evaluation of projectfinancings in the following types of organisation:

COURSE DIRECTORS Margaret Osius: President of MEO Inc., she designs and delivers management training seminars to a widevariety of organisations and worldwide. Training sessions have covered topics such as international projectfinance, capital markets: investment and corporate financing alternatives, and risk management throughthe use of derivatives.

In recent years Ms. Osius has also advised a variety of corporate, private and development bank clientsstructuring green-field projects as well as facility upgrades in the oil and gas, power, transport andtelecom sectors. The purpose of these assignments has been to equip the clients to best access or arrangesuitable financing. Frequently the advisory work has been accompanied by tailored training.

Prior to establishing her own firm Ms. Osius was a Vice President in the Global Banking Division of ChaseManhattan Bank. During her career at Chase she structured export and international project transactionsand advised clients on foreign exchange risk management. Earlier in her career at Chase, Ms. Osius wasresponsible for a team of credit analysts charged with evaluating the quality of Chase's global loanportfolio as well as that of newly acquired affiliates. In that role she also had extensive experience withworkout and distressed credit.

Some current and former clients include ABSA, ANZ Bank, Bear Stearns, Chase Manhattan Bank, Citicorp,Ecopetrol, Freddie Mac, General Electric, IBM, Inter-American Development Bank, Islamic DevelopmentBank, Kleinwort Benson, Lucent Technologies, Merrill Lynch, Westpac Banking Corp., Shearman andSterling, Overseas Private Investment Corp., The World Bank, and the U.S. Treasury.

Ms. Osius has published articles in the business press and has co-authored several self-study guidescovering international project finance, trade and export finance, foreign exchange, and financial futures.The World Bank has published articles she has written discussing approaches to credit and financialanalysis in emerging markets. She is a primary speaker in a series of videotapes created to cover the topicof Sound Banking Principles during executive training sessions in Moscow.

Currently Ms. Osius is a member of the Technical Advisory Panel of the Public Private InfrastructureAdvancement Fund. She received a B.A. degree from Princeton University and an M.B.A. from INSEAD, theEuropean Institute of Business Administration, in Fontainebleau, France.

Andreas Maestle: In 1999 Andreas Maestle founded PROFINTOOLS to develop project finance software.An Economist, Dr. Maestle was previously with KfW in Germany in the Asia department as task managerfor infrastructure projects as well as the Export-Credit and Project Finance department of the bank. Earlierin his career he spent several years in the Middle East section of the Federal Ministry for EconomicCooperation and Development, in Bonn, followed by work as an Advisor to the German Executive Directorat the World bank in Washington.

• Commercial and Investment Banks• Project Sponsors and developers• Equipment Suppliers• Development Banks• Contractors, Project advisors, • Accounting and Legal Practices• Project Consultancies• Government Departments

• Export Credit Agencies• Commercial and investment bankers with

interest in project appraisal and financing• Corporate treasurers• Venture capital investors• Corporate finance specialists• Financial analysts

Day One

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Introduction: Oil , Gas & Power Project Finance in theMiddle East and North Africa Today� The Changing Market for Project Finance

Transactions:� Special Features of Limited Recourse

Projects in Africa� BOO, BOT, BOOT, BLT: Private Sector Providing

Public Services� What is the Appeal of this Approach?� The Players and Their Roles� Steps in a Project Financing� Types of Projects and Their Comparative

Complexity� Identifying and Allocating Risks

Example: Pipelines

Risk Identification and Allocation in Oil, Gas & PowerProject Financing� Different Approaches/Differing Risks� Pipelines� Field Development and Platforms� Production Facilities� Refineries and Petrochemical Plants� Power Plants

Sources of Finance: A Financing Checklist� Domestic Borrowing � Loans from International Banks � International Capital Markets: Eurobonds, Private

Placements Yankee Bonds� Export Credit Support for Loans and Bonds� Specialised Agencies: IFC and others � Leasing� Equity from Project Sponsors and Others� Derivatives Usage

Traditional and Contemporary Sources of Finance:Domestic and International Bank Loans� Syndicated Loan Financing: Primary and

Secondary Distribution� Pricing, Flexibility, Timing

� Participation, Assignment, and Novation� What Security Do Banks Want?

� Offshore Accounts and Trustees� Mortgages on Fixed Assets/Contract

Assignments

Workshop: Cash Flow Modelling and CreditAssessment� Cash Flow Analysis� Building a Model: Forecasting Techniques and

Limitations � Perspective of the Sponsor vs. Creditors� Sensitivity Analysis� Probabilistic Models and Monte Carlo

Simulations

Case Study: Financing a Fertiliser PlantParticipants break into small groups to evaluate thissecurity package in this gas processing plant. Theywill also work with a computer simulation to quantify their risk assessments.

Day Two

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Case Study Discussion

Legal Issues� Legal Environment � Commercial Points and Legal Points in Various

Project Structures:

� Incorporated and Unincorporated Joint Ventures

� Partnerships and Limited Partnerships � Key Contractual Agreements and Structuring

Considerations

Export Credit Agency Support� Guarantees and Insurance � Buyer and Supplier Credits� Securitisation of ECA Guarantees

� Choosing a Special Purpose Vehicle� Establishing that a Security is “Bankruptcy

Remote"

Example: Telecom Finance in Mexico

More on Financing and Political Risk Support fromMultilateral Agencies� Debt and Equity Support Programs of MLA's� Key MLA's and Programs

� World Bank (IBRD)� International Finance Corp. (IFC)� Multilateral Investment Guarantee Agency

(MIGA)� Overseas Private Investment Corp. (OPIC)� African Development Bank (AfDB)� Islamic Development Bank

� Other Bilateral Agencies

Examples: Jorf Lasfar Power, Morocco

Private Sector and other Sources of Political RiskInsurance� American International Group (AIG)� Export Credit International Ltd.� Lloyds of London� Unistrat� Commercial Bank Programs

Case Study: Condensate Field Development in AlgeriaParticipants will break into groups to work on thislimited recourse project upstream oil and gasstructure. Discussion will focus on project risks, theirallocation through contracts, the mix of financing,cash flow projections, as well as rating agencyconsiderations in evaluating the proposed financingstructure.

Day Three

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Projects Financed in the Capital Markets� Capital Markets and Examples of Transportation

Projects:� Rule 144A� Eurobond Financing� Mezzanine Finance� Infrastructure Investment Funds

� Sources of Credit Enhancement: Mono-line Insurers

� Rating Agency Criteria� Structuring an Investment Grade

Instrument� Pricing Implications

Example: Crude Oil Export Receivables Securitisation

� Using ECAs to Access the Capital Markets

Leasing Applications� Leasing Applications in Projects� Evaluating Cost

Case Study Example: Colombia

Case Study: Financing a Deep-sea Oil Rig in theCapital Markets Participants break into small groups to prepare a casestudy concerned with financing an oil rig. A computersimulation will be used to model cashflows. Groupswill present their solutions.

Key learning points of Day 3

Day Four

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Power Deregulation� Market Forces and the Effect on Electrical Supply� Fragmentation of Electricity Generation

� Gencos/Transcos/Discos� Merchant Plants� Rating Agencies' Analytical Model� Critical Elements for Risk Mitigation

Case Study: Financing a Power and DesalinationPreoject in the GulfFocusing on special considerations in combinedpower and water projects. Participants will break intosmall groups to prepare a case study to evaluate thesecurity package in this transaction. They will alsomodel for cash flow sensitivities

Energy Derivative Applications� Managing Energy Price Risk� Derivatives, Applications and Risks� Derivative-Linked Finance

Summary and self-test

Day Five

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(Meg Osius and Andreas Maestle, PROFINTOOLS)Participants will spend this final day building a modelfor Ras Laffan - a Liquified Natural Gas (LNG) projectin Qatar. They will use advanced project financesoftware from "ProFin Tools" Modelling theconstruction and operation of the plant they willassess a wide range of scenarios in order to test alimited recourse financing package for debt capacityand suitability for investment. Participants willreceive a demo copy of the "ProFin Tools" projectfinance modelling software for use beyond thesession.

Modelling Workshop Overview� Introduction to the "ProFin Tools" � Model Variations by Project Type

Structuring the Model and Organising the Data� Construction Costs and Timing� Operating Cost, Plant Capacity Usage, Fixed and

Variable Costs � Reinvestment, Plant Expansion, Productivity

Shifts� Factoring in Reserves� Considering Currencies� Tax Calculations

Financing Section� Equity First or Pro Rata� Manually Designed Equity Subscription � Draw-down of Debt Linked to Specific Contracts

or Expenditures � Debt Draw-down in a Hierarchy

Practical Modelling Issues� Avoiding Circularity� Other Modelling Pitfalls

Sensitivity Analysis: Objectives and Limitations� Measuring Debt Capacity and Investor Return� Using Modelling Output for Initial Project Vetting � Supporting on-going Negotiations

Summary and Wrap-up of Workshop

AgendaOil, Gas & Power Project Finance

Dubai, U.A.E.


Cancellation PolicyA full refund less an administration fee of £100 will be given for cancellation requests received up to20 working days before the event. Cancellations must be made in writing (letter or fax) and reach thisoffice before the 20 working day deadline.

Delegates who cancel less than 20 working days before the event, or who don't attend, are liable to paythe full course fee and no refunds can be given. However, if you wish to attend the next course, and you have paid your course fee in full, you will only be invoiced for 25%of that course fee. Please note that you can only transfer once. Please note that the next course musttake place within 6 months of the initial application. Of course, a replacement is always welcome.

DisclaimerEuromoney Training EMEA reserves the right to change or cancel any part of its published programmeor teaching faculty due to unforeseen circumstances.

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RegistrationOil, Gas & Power Project Finance

�� 25 - 29 January 2009, Dubai, U.A.E. (EOT3070)

In order to guarantee a place on the course delegates are kindly requested to register at least 6 weeks prior to the course start.

Course FeesStandard delegate fee:£3,450 Sterling

SAVE MONEY-10% DISCOUNT*Discounted delegate fee:£3,105 Sterling

*Discount of 10% for second and subsequent delegates from the same institution on thesame programme. This discount can not be used in conjunction with any other offer.

Fees include all the tuition, full course documentation, lunches and refreshments for theduration of the programme.

Incidental expenses: Euromoney Training EMEA is NOT responsible for covering airfareor other travel costs incurred by registrants. Delegates will be responsible for their own accommodation.

Please note that Euromoney Training EMEA reserves the right to refuse admission to thetraining if proof of payment has not been received prior to the start of the programme.

An invoice will be sent upon receipt of registration form.Payment must be received in full prior to the course start.

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Group booking Discounts*

�� 3 delegates - 10% discount�� 4 delegates - 12% discount�� 5 delegates - 15% discount

*Available for delegates from one organisation attending the same course.

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5 easy ways to register and obtain further information

1 tel: +44-20-7779 8543 2 fax: +44-20-7779 8140

3 e-mail: [email protected] 4 web: www.euromoneytraining.com/middleeast

5 mail to: Euromoney Training EMEA, Nestor House, Playhouse Yard, London EC4V 5EX, UK

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