Invincible Energy

OOL - Oil Operations & Logistics

2011 Course Dates: TBC

Singapore

This course is designed to give delegates a comprehensive picture of the importance of operations in the international trading of crude oil and refined products. Delegates will learn the role of operations in the overall downstream supply chain and how to take the most cost-effective decisions in the areas under their control. Exercises are used throughout the course to demonstrate the effect prices and freight rates have on decisions taken and how profit leakage can be understood and controlled. Ample time is given to comprehensive debriefs and discussions of the decisions made.

Course Fees:  TBC

Early Bird and Team Fee Discounts available on application

 

Course Outline

Background Fundamentals

• Introduction to the oil supply chain

• Understanding physical markets

• Price reporting

• Product distribution

Quantity and Quality Measurement

• Crude oil considerations

• Refined product considerations

• Blending activities

• Importance of inspectors

Stocks & Storage

• Need for storage

• Stock management

• Problem rates

• Tax considerations

Operating Procedures

• Importance of operations in trading

• Role of operator versus trader

• Trading costs

• Impact of operations on trading profit

Shipping and Chartering

• Tankers & chartering

• Freight costs and Worldscale

• Documentation requirements

• Impact of demurrage

Performance & Credit

• Client/counter party risk

• Documentation

Risk Exposure and Management

• Risks in trading activities

• Basics of exposure

• Concept of hedging

• Risk management tools

Contracts

• Interpretation of contracts

• Legal issues

Control Mechanisms

• Controls & authorities

• Deal conclusion procedures

What you will learn:

By the end of the course, delegates will be able to use Worldscale to charter a ship and to see the impact operations has on the oil trading profitability. They will understand stock management and oil blending and the importance of quality considerations. The interaction between operators and traders will be addressed along with those operational factors which affect profitability. The impact of price exposure and price risk management on traders’ decisions and the knock-on effects for operations are also examined. The course will also cover the essential areas of documentation and legal issues surrounding trading.

Who should attend:

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