Due Diligence in Oil and Gas Business Acquisition

Why select this training course?

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.

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.

Why is it necessary to learn to perform due diligence in the oil and gas business?

Due diligence ensures the integrity of the decision-making process and the quality of the information used. In the oil and gas industry, due diligence is used to analyze a company’s reserves and ability to produce and market oil and gas. As the government requires energy companies to perform due diligence on the firms they wish to do business with, it has become necessary for oil and gas companies to learn what due diligence is.

Rcademy’s Due Diligence in Oil and Gas Business Acquisition course covers all the essential aspects beginners and professionals alike would need to perform thorough due diligence. With this latest Due Diligence course, get updated with the best due diligence techniques and practices presently being used in Oil and Gas business. With the successful completion of the course, participants will be able to help their organizations in achieving the desired goals of the M&A.

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

What are the course objectives?

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

How will this course be presented?

• Interactive sessions
• Use of case studies
• Management games
• Learning preparation of reports, charts, graphs
• Real-time exercises
• Problem-solving and Group discussion sessions

What are the topics covered in this course?

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