FULL 2-WEEK PROGRAMME OR ATTEND ONE OF THE WEEK LONG MODULES. Module 1: Physical Crude & Products Trading Date: August

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1 ICE Education and IBH have combined their expertise to provide an innovative and practical programme covering all aspects of the physical crude oil, products and traded derivatives market through our market leading Oil Trader Academy. With the global oil markets being subject to extreme volatility and change due to a series of geopolitical events, this is the ideal time and opportunity to understand the drivers of oil price movements and tools at your disposal to protect against and trade around your organisations market position. This programme will appeal to: oil and product traders, refiners, economists, analysts portfolio managers, risk managers, operations managers, brokers and other related front, middle and back office staff. As an outcome from the course you will: Review crude oil supply, demand and products Understand crude oil refining, evaluation and selection Explore physical and derivative oil markets, shipping and contracts Appreciate pricing formation, trading and price risk management Learn about futures, swaps, options and over- the-counter markets Become familiar with trading techniques and terminology Participate in trading and hedging simulation exercises and improve negotiation skills FULL 2-WEEK PROGRAMME OR ATTEND ONE OF THE WEEK LONG MODULES Module 1: Physical Crude & Products Trading Date: August Module 2: Advanced Trading & Price Risk Management Date: August Where: ICE Futures Europe, London Standard Rate* One module: 3,995 + vat Full course: 6,995 + vat Pre 31 May Rate* One module: 3,595 + vat Full course: 6,295 + vat LONDON Multi Booking discounts 10% for 2 delegates and 15% for 3+ delegates** * Price includes a theatre night during each module. These fees do not include accommodation, but inclusive packages are available. See page 6 for details. ** For same company bookings when booked at the same time

2 TRAINER BIOGRAPHIES Trevor Christmas Trevor Christmas has 30 years experience in the energy industry with BP, and more recently, with the IPE. At BP, he held senior management positions in London, Asia and the Americas mainly in trading and downstream. At the IPE, he was responsible for the Exchange s marketing services worldwide in oil, gas and electricity. David Richards David Richards has over 30 years experience in the international oil and natural gas business with the BP Group. He gained a breadth of experience in senior management positions within the downstream marketing business in the UK, Europe and South Africa, involving Directorships in a number of BP subsidiaries. Tom James Professor Tom James has built up 20 years of practical expertise in the Energy, Emissions and International Commodity markets. His broad experience covers investment and trading with a particular focus on Asian, Central Asian, and Middle East Markets. His career has spanned the complete value and business process chain and through this he has built up a holistic understanding of the key elements of investment, trading and risk management decision making. In 2003 he published his first book offering practical guidance to corporate managers and new traders in the energy and commodity sector and since then has published three more books and contributed to two others, including Energy Markets (Wiley Finance 2008), Energy & Emissions Markets (Wiley Finance 2006). Since 2006 he has held the Chair Professorship for LNG business at the University of Petroleum & Energy Studies, and in November 2008 for his contribution to written knowledge in the Energy Trading field was awarded the title of Distinguished Professor. In October 2009 he started co-operation with the Singapore Management University International Trading Institute (SMU ITI) as a visiting Executive Faculty member and as a Research Fellow. Tom is a regular commentator on BBC World, CNBC, and Bloomberg television on topics related to international energy and emissions market related issues. John Fry John Fry has worked in the energy markets since 1986 when he joined Man International as a broker on the oil desk. He specialised in futures and options and qualified as a trader in the IPE option pit. He executed the first principal OTC oil deals for Man and became head of the energy desk in London. John moved over to the OTC energy market in 1997 and worked for Koch Petroleum Group helping to develop their energy derivatives business. Ken Mildwaters Ken Mildwaters read jurisprudence (B.Juris. (Hons)) and law (LL.B) at the University of Western Australia, Australia and law (Ph.D.) at the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee, Scotland. Ken Mildwaters has been a partner at the London office of global law firm Morgan Lewis & Bockius, and of-counsel for another global firm, Milbank, Tweed, Hadley & McCloy, focusing on corporate, commercial and natural resources law. He founded and managed law practices on behalf of a joint venture of law firms Dewey Ballantine and Theodore Goddard, in the Czech Republic, Hungary and Poland. Dr Mildwaters has presented numerous papers and conducted workshops in the fields of natural resources law, joint ventures and joint operating agreement, negotiation skills and managing in-house legal functions. His academic interests lie in the intersection of law and business, where he has concentrated on joint ventures/joint operating agreements and negotiation. Julian Lee Julian Lee is Senior Energy Analyst at the Centre for Global Energy Studies. Mr Lee joined the Centre for Global Energy Studies at its creation in He specialises in global oil market analysis and the oil industries of the former Soviet Union and sub-saharan Africa, overseeing all the CGES work in these latter areas. Mr Lee has written extensively on many aspects of the oil industry of the former Soviet Union, including the production prospects for both Russia and the Caspian region, the export options for oil and gas producers in both regions and the dynamics of and prospects for Russian oil demand. Mr Lee is a frequent commentator on global oil markets and on the oil industry in the former Soviet Union and the proposed export projects of Russia and the Caspian countries. Julian Lee is a graduate in Mathematics from the University of Warwick and received his Master Degree in Operational Research from the London School of Economics. IN-HOUSE TRAINING In-house training can present an efficient, cost effective and targeted way to ensure that your people are equipped with the knowledge and skills to meet your business objectives and customer requirements. It can save time and money. We can come to you to provide this training in your own location. Training can be arranged for small groups or entire divisions and will take place at a time chosen by and convenient to you. If you would like to discuss possible co-operation in developing in-house training please contact: Neil Scurlock Head of Training T: +44 (0) E: education@theice.com

3 MODULE 1: DAY 1 - PHYSICAL CRUDE OIL & PRODUCTS TRADING MODULE 1: DAY 1 General Introduction Administration and delegate introduction Course Overview Supply and Demand Fundamentals and Implications Evolution of oil demand and supply Current oil reserves and production Oil supply/demand and implications for trade Crude Evaluation and Selection Crude classification and assay Gross Product Worth Worldscale (Freight costs) Net margin and crude selection Refining & Trading Simulation (Round 1) General introduction Physical (wet) crude trading GPW and best crude Physical Markets & Pricing Crude Oil Physical oil markets Pricing mechanisms MODULE 1: DAY 2 - CONTRACTS The Players Crude Oil Market Structure Long-Term Contracts issues with change of circumstances Spot Market Contracts characteristics of the market areas of markets standard terms FOB Crude Oil Contracts free on board duties of seller and buyer passing of property CIF Crude Oil Contracts cost, insurance and freight, variations, out-turn clause terms relating to deliver on arrival duties of seller and buyer the goods, quantity and quality shipment period and place, appropriation, shipping documents, tender of documents, passing of property Delivery Terms Price and Pricing Formula Shipping Procedure Payment Legal Aspects text and contracts bills of lading, letters of credit, letters of indemnity, performance bonds nomination laytime and demurrage certificates of quantity, quality and originality Taxes, charges and expenses Warranties free of encumbrances, right to transfer Dispute Resolution Lifting and Balancing Agreements MODULE 1: DAY 3 Dated Brent and The 25 Day BFOE Market & Other benchmarks Introduction to the terms Role as a benchmark Why Brent - The Brent forward contract Brent lifting programme Linking of the 25 day BFOE & Dated Brent markets WTI Dubai Hedging Instruments - Forward & Futures Pricing exposure/keeping an exposure book Evolution of the market Crude oil forward markets Review of futures contracts & terminology Basic Hedging example using futures Basis risk/opportunity and forward curve Refining & Trading Simulation (Round 2) Crude hedging with futures/basic risk Hedging strategy and position management Refinery nominations (crude type and mode of operation

4 MODULE 1: DAY 1 - PHYSICAL CRUDE OIL & PRODUCTS TRADING Market Reporting and Price Assessment - Platts What is Platts? Market needs Scope of crude and product reporting Price assessments and confirmation MODULE 1: DAY 4 Refinery Products & Processes The main products Refinery configurations Deep residue conversion How refiners influence yield variations Alternative & Renewable Fuels Changing crude slate Transport Fuel Quality & Emissions Regional Demand & Margin trends Blending & giveaway Swaps Swaps terminology and principles Examples of crude oil and product swaps Swaps settlement and pay-out Contracts for difference/ Brent CFD market Intro Refining & Trading Simulation (Round 3) Product Sales FOB Gas oil futures and mogas swaps Developing a trading strategy Refining & Trading Simulation (Round 3) Product Sales FOB Gas oil futures and mogas swaps Developing a trading strategy Freight & Shipping Shipping & Chartering Chartering a ship Tanker Market Supply & Demand Operations & risks Chartering exercise handout MODULE 1: DAY 5 International Product Trade Flows and Transport Differences between Products & Crude The main product markets Product price drivers Product price differentials Refining Balance Fundamentals of the various product markets - Power Market - Bunker Market - Atmospheric Residue market Importance of Refining Margins Freight Arbitrage & Trade Role of Traders/Blenders International arbitrage Freight Choice and CIF Contract Exercise Intro Refining & Trading Simulation Briefing (Round 4) Refining & Trading Simulation (Round 4) Teams Arbitrage Product sale CIF & FOB Profitability & Mark to Market Week 5 sales Trading strategies Back to Back Long & Short Cornering Fundamental Analysis Technical Analysis Trading off a term contract Spread trading & Cfd s Controlling risks Simulation Results Summarising Comments/Delegates depart

5 MODULE 2: ADVANCED TRADING & PRICE RISK MANAGEMENT MODULE 2: DAY 1 Fundamentals of oil and gas Basic principles Upstream marginal and average costs Capital intensity Exploration and Production Crude oil characteristics Refining Oil industry structure Oil price volatility The geography of oil and gas Oil demand Global demand growth Shifting balances between OECD and Non-OECD The changing balance of products Oil Production Major producing regions Production trends Oil trade Major oil trade flows Analysing Oil price behaviour to aid decision making and timing around physical inventory and or hedging and lifting windows Advanced Analysis and interpretation of Oil Price Behavior Overview of oil price behavior Forward curve analysis for European Oil markets Recap of key benchmarks Technicals Analysis of oil futures benchmarks Analysis techniques for Platts Physical market data AV numbers and Pivot Points (CACT) Key fundamental analysis factors and tools News and information tools to aid timing of trading decisions Analysis Scenarios Application in case studies of Analysis Tools MODULE 2: DAY 3 Crude Oil Markets and Instruments: Physical and Financial Trading Forwards, swaps, exotic swaps (extendable, double-up), basis swaps, options, Asian options, EFPs OPEC The role of OPEC Modelling the oil market Why do we want to model the oil market? Modelling demand Oil price determination Oil inventories Oil market outlook What drove oil prices to $150/bbl in Futures or fundamentals? What stopped the collapse early in 2009? What is driving the price rebound? Where will oil prices go from here? Is oil price stability possible? MODULE 2: DAY 2 Structure of Course Refined Products Markets And Instruments: Physical and Financial Trading Trading crack spreads, refineries as derivatives Forwards, swaps, basis swaps, options, strips of options, Asian options, crack spread options Weather, Freight And Emissions Markets - Their Impact On Oil Markets Temperature measures: cooling degree days and heating degree days Hybrid products based on weather and other underlying assets Emissions markets Freight routes and markets Types of strategies and approaches Strategy case studies: ICE Brent vs ICE WTI Strategy case studies: Urals vs Brent Strategy case studies: Brent vs Dubai

6 MODULE 2: ADVANCED TRADING & PRICE RISK MANAGEMENT Hedging to Save Money Strategy Workshop: End User, Producer, Utility, Physical trader scenarios Case Study: Freight rate trading and hedging Options & Risk Management Approaches Using energy options: hedging & speculation Review of option types Understanding option payoffs, hedge financing risk management MODULE 2: DAY 4 Trading Laboratory Managing the Trading Emotions Trader mindsets Trading plans and removing the emotional factor Taking a loss - Taking a profit Communication skills Market conspiracy - you versus the market Trading Room Practicals & Scenario Based Trading Games Each delegate will have a system set-up for the oil markets and will execute both OTC and futures market orders reacting to real-time scenarios presented using a PC Based trading simulation exercises MODULE 2: DAY 5 Strategic and Tactical Issues Around Hedging with Energy Derivatives Understanding operations and entity-wide objectives Evaluating the impact of indication vs hedging. Payoffs under different scenarios Evaluating the use of derivatives to control market risk and linking use toenity-wide and activity-level objectives (the risk matrix) Defining risk management activities and terms Designing Policies and Procedures Around Market Risk, Credit Risk And Operational Risks Communicating and enforcing the policies Risk Management Understanding and interpreting at-risk measures, VaR Overview of methodologies: Analytic, Monte Carlo and historical simulation Enchancing exposure reports with risk analysis Stress Tests In Energy Markets Stress tests as a complementary tool to VaR and other market risk measures - Case studies selecting appropriate Stress Tests for various scenarios - Case studies working through possible stress tests for your organisation Types of stress tests and main applications Integrating liquidity, credit and operational risk in the formal risk management process Value at Risk Measurement Running of VAR risk simulation using online Value at Risk system. (Hyper-Rig and Aspect) Case study to calculate operating the correct inputs and output parameters Risk Report design and formats HOTEL PACKAGE FEES 12 nights (from August) - 2,042 + VAT 6 nights (either from August or from August) - 1,121 + VAT THE FEE COVERS Hotel accommodation at 5* Grange St. Pauls Hotel Full English breakfasts Transfers from/to an airport Daily transfers from the Hotel to ICE Futures and from ICE Futures back to the Hotel

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