Introduction to Upstream Mergers & Acquisitions (M&A)
To provide participants with fundamental knowledge of upstream oil & gas M&A processes, including asset valuation principles, technical-commercial integration, transaction lifecycle, due diligence workflow, and risk assessment—building a strong foundation for progression to skilled and advanced M&A roles.
F. Reservoir Engineering Course/Petroleum Engineering
3 days
Fondation
Classroom
This course is suitable for:
- Junior Petroleum Engineers
- Junior Reservoir Engineers
- Geologists & Geophysicists supporting asset evaluation
- Finance & Commercial Analysts (energy sector)
- Business Development Staff
- Asset Management Professionals
- Legal & Contract Staff involved in upstream transactions
- Government/Regulator personnel overseeing upstream deals
Recommended Background
- Basic understanding of upstream oil & gas operations
- Familiarity with reserves and production concepts (helpful but not mandatory)
- No prior M&A experience required
DAY 1 – Fundamentals of Upstream M&A
Objective:
Understand what upstream M&A is and how asset transactions work in oil & gas.
Session 1 – Introduction to Upstream Business & Asset Types
- Overview of upstream value chain
- Exploration, development, production phases
- Types of assets (exploration blocks, producing fields, marginal fields)
- Farm-in / farm-out vs acquisition
Session 2 – What is Upstream M&A?
- Definitions and objectives of M&A
- Asset deals vs corporate deals
- Strategic drivers for acquisition/divestment
- Portfolio management concepts
Session 3 – M&A Transaction Lifecycle
- Deal origination
- Screening & preliminary evaluation
- Confidentiality agreement (NDA)
- Data room process
- Indicative offer & bidding
- SPA (Sales Purchase Agreement) overview
- Closing & handover
Workshop 1
- Analyze a simplified case of an asset for sale
- Identify strategic reasons to buy or sell
- Define potential risks
DAY 2 – Asset Valuation & Due Diligence Basics
Objective:
Introduce fundamental technical and financial valuation concepts used in upstream M&A.
Session 1 – Technical Evaluation Basics
- Reserves classification overview (1P, 2P, 3P)
- Production profile analysis
- Decline curve fundamentals
- Development plan review
- Infrastructure & operational risk
Session 2 – Financial Valuation Fundamentals
- Cash flow modeling basics
- CAPEX & OPEX estimation overview
- NPV, IRR, payout time
- Discount rate concept
- Sensitivity analysis (oil price, production, cost)
Session 3 – Due Diligence Overview
- Technical due diligence
- Commercial & fiscal regime review
- Legal & contractual checks
- Environmental & abandonment liabilities
- Red flags in upstream transactions
Workshop 2
- Calculate simple NPV for an asset
- Perform basic sensitivity analysis
- Identify due diligence checklist items
DAY 3 – Risk, Negotiation & Integration Overview
Objective:
Provide understanding of risk assessment, negotiation principles, and post-acquisition considerations.
Session 1 – Risk Assessment in Upstream M&A
- Subsurface risk
- Production & operational risk
- Commodity price risk
- Political & fiscal risk
- Monte Carlo concept (introductory level)
Session 2 – Negotiation & Deal Structuring Basics
- Bid strategy fundamentals
- Contingent payments
- Earn-out structures
- Risk-sharing mechanisms
- Joint venture considerations
Session 3 – Post-Acquisition Integration
- Asset handover process
- Transition management
- Operational integration challenges
- Realizing acquisition value
- KPI monitoring
Final Case Study
Participants will:
- Review simplified asset data
- Estimate asset value
- Identify key risks
- Recommend go/no-go decision
- Present investment rationale
After completing this course, participants will be able to:
- Understand the upstream M&A lifecycle
- Explain basic asset valuation concepts
- Interpret reserves and production profiles
- Calculate simple NPV and sensitivity cases
- Identify key technical and commercial risks
- Understand due diligence workflow