Political risk is a detailed assessment of all risks related to doing business in a given country. Return on investment (ROCE) is the most commonly used indicator of the effectiveness of capital investment in the oil and gas industry. ROCE is the net profit divided by the average capital employed in the business unit or enterprise. Philipp Beuleke is an international legal expert specializing in energy and contract law. Prior to joining Swissgrid`s Grid Legal team, responsible for providing legal advice on the operation and expansion of the Swiss transmission grid, he worked as legal counsel in the commercial department of a leading Swiss energy company. In addition, he gained several years of experience as a litigator during his work for a zurich-based business law firm. In addition, exploration and production (E&P) development projects involve another major element, geological risk. Mikko Pulkkinen has more than 15 years of experience in the energy sector and in corporate affairs, both as an in-house lawyer and in private practice. Currently, Mr. Pulkkinen leads a team of lawyers responsible for the legal affairs of Wärtsilä`s energy business units and compliance.
Mr. Pulkkinen has been based in Europe, Asia and South America and has acted as legal counsel on a variety of energy transactions worldwide. His practice also includes the management of disputes and compliance issues. Mr. Pulkkinen studied law in Finland and the Netherlands and holds a Master of Laws (LL.M). As shown in the Multiple Analytical Approaches Used chart, oil and gas companies use three basic analytical approaches to develop risk profiles for different asset classes and systematically link project analysis to the company`s long-term business strategy. In addition to what is generally considered an environmental risk, such as pollution or inattention to the ecological environment, other issues such as staff safety, damage to equipment, fires, floods and disasters are also important. The ”Industry-wide risk management” chart is an index of the relative size of economic risk, as it translates into capital and expenses and affects a company`s financial performance. Monte Carlo simulation is the most commonly used tool to quantify risks in E&P projects. The name refers to Monte Carlo, Monaco, known for casinos where roulette wheels, dice and slot machines show random behavior. Tim is President and Founder of the International Association for Contract & Commercial Management.
He has led the association for 19 years and has more than 50,000 members worldwide representing more than 16,000 companies. Tim`s role is increasingly turning to research, working with governments, NGOs and academic institutions to advance reform and education in business policy and practice. In addition, he supports the senior management of many leading companies with business competency assessment and consulting services. Energy companies today need an agile contract platform to keep up with the evolving needs of multiple stakeholders in a turbulent regulatory environment. Whether you need to ship the supply of the respective networks or upgrade power conversion technologies to increased efficiency, Optimus BT`s e Contracts + Office 365 offers an all-inclusive contract solution that best suits your ever-changing needs. The higher the risk, the higher the potential return on successful projects. However, this increased risk comes with a higher likelihood of significant financial losses. Petra has been working in the energy sector since 1997 and began her career as an upstream oil and gas lawyer in Germany before moving to London to work in the energy department of Denton`s, a global law firm. In 2001, Petra helped set up RWE Supply & Trading`s legal team in London and supported the company`s business activities. In addition, she was briefly detached to the Nabucco pipeline project for RWE. In 2010, Petra joined Citibank`s commodities law team in London, where she led the contract negotiation team.
Citi also sent Petra to South Africa for ten months, where she was suspended from her general banking activities. After leaving Citi, Petra remained in London and led the legal and compliance team at a small accessory trading company. Today, she is part of Uniper`s legal and compliance leadership team. Petra is admitted to the German and English Bar and holds an L.L.M in Petroleum Law and an MBA from London Business School. She has a passion for diversity and has a son and a daughter. A change in country management or political philosophy can often lead to a revaluation of a host country`s oil, gas and commodity reserves. Here are some examples of possible changes: The other important factor is environmental risk. Environmental impact assessments are a central element of new projects, including special attention to the project`s carbon footprint. Consistency and feedback are very important parts of the process. Business planners provide guidance to management with tools to help the company achieve its goals each year. The 8th edition of Contract Risk Management for the Energy Sector welcomes decision-makers from the legal, procurement and contract management departments of major energy suppliers, nuclear, oil and gas operators, energy contractors (renewable and non-renewable), subcontractors and EPC service providers in an exclusive closed and business-friendly group environment for networking between Peers, an in-depth sharing of knowledge and learning opportunities to learn from the current CRM execution in a rapidly developing energy sector to keep pace with the market.
Portfolio management simulates different combinations of proposed projects and, in particular, the interaction between projects. With this method, all potential E&P projects are consistently and objectively characterized in terms of reserves, cash flow and investment costs. The data suggests that planners and decision-makers who assess risk with a probability profile rather than a point estimate are making better investment decisions. Today, business planners use principles to optimize asset portfolios and sophisticated mathematical models to assess various risk-return relationships. Trade measures and quantitative tools are common and available. Some overlaps occur with political risk in assessing factors that can also affect the economics of a project: although the decision-making process between all these different types of investment options seems complex, planners in the global oil and gas industry say that the goal is actually quite simple – finding the right mix of investments to help the company consistently achieve its financial goals. and performance.. .