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Institute For Oil & Gas Training
OGI-1213 New

Risk Management for Upstream & Midstream Projects: Exposures Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
12 Oct 2026
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Overview

The Risk Management for Upstream & Midstream Projects Training Course from Institute For Oil & Gas Training equips oil and gas professionals with the capabilities to identify, assess, prioritise and control the commercial, financial, political, operational and strategic exposures affecting upstream and midstream projects. The course addresses the need for an integrated risk management approach that connects project economics, contractual obligations, operational continuity, regulatory compliance and corporate decision-making across the petroleum value chain.

Upstream exploration and production projects and midstream transportation, processing, storage and pipeline operations face interconnected risks that influence capital allocation, project delivery, revenue stability and long-term asset performance. Commodity price volatility, country and political risk, resource nationalism, counterparty credit risk and supply chain disruption expose organisations to financial losses, contractual disputes, operational interruptions and uncertainty in investment returns. Effective risk management requires more than maintaining a risk register. It requires a structured process for understanding exposure, evaluating its potential consequences, assigning ownership and implementing controls that support informed business decisions.

The Risk Management for Upstream & Midstream Projects programme developed by Institute For Oil & Gas Training focuses on the practical application of enterprise risk management principles within the commercial and operational realities of the oil and gas industry. Participants examine how risks emerge during exploration, field development, production, pipeline construction, hydrocarbon transportation, terminal operations and infrastructure expansion. They learn to connect project-level assessments with portfolio priorities, financial forecasts, contractual commitments and corporate risk appetite.

A central feature of the course is the relationship between external market conditions and internal project vulnerabilities. Changes in crude oil and natural gas prices influence project economics, production strategies, operating expenditure and investment decisions. Political instability, changes in fiscal terms, export restrictions and resource nationalism affect asset ownership, licensing conditions, market access and the repatriation of investment returns. These exposures require structured scenario analysis and clear escalation procedures rather than isolated assessments undertaken by individual departments.

Counterparty credit risk is another significant consideration for operators, joint venture partners, contractors, commodity buyers, shipping providers and infrastructure customers. Payment delays, financial distress, contractual non-performance and disputes over commercial obligations can disrupt cash flow and threaten project continuity. Participants explore methods for evaluating counterparty exposure, reviewing contractual protections, monitoring financial warning indicators and establishing appropriate mitigation measures.

The course also addresses supply chain disruption and the operational dependencies that connect upstream production with midstream infrastructure. Equipment shortages, contractor failure, logistics constraints, pipeline interruptions and inadequate maintenance planning affect production availability and delivery commitments. These risks frequently interact with health, safety and environmental obligations, making the HSE and operational risk interface an essential component of project risk management.

Institute For Oil & Gas Training places particular emphasis on practical decision-making under uncertainty. Participants assess risk likelihood, financial consequences, control effectiveness and residual exposure using structured registers, risk matrices, scenario analysis and key risk indicators. They examine insurance and risk transfer, business continuity planning, contingency provision and risk ownership as complementary elements of an effective control framework.

The programme also explores the distinction between transferring a financial consequence and controlling the underlying hazard. Insurance arrangements support financial protection against defined events, but they do not replace preventive controls, operational safeguards or emergency preparedness. Similarly, contingency provision supports financial planning for uncertainty, while a properly maintained risk register helps management understand the assumptions and exposures that justify those provisions.

For organisations operating across multiple jurisdictions, assets and contractual structures, consistent risk assessment improves visibility between commercial, finance, procurement, engineering, operations, HSE and compliance teams. It also supports more disciplined investment decisions by clarifying the relationship between identified threats, potential financial consequences, mitigation costs and residual risk.

Through the Risk Management for Upstream & Midstream Projects Training Course, Institute For Oil & Gas Training helps professionals establish a commercially grounded and operationally relevant approach to risk management. The programme develops the ability to convert risk information into practical controls, credible contingency plans, stronger contractual protections and more resilient project decisions.

Objectives

  • Identify strategic, commercial, financial, political, contractual, operational and supply chain exposures affecting upstream and midstream projects.

  • Apply structured risk identification and assessment techniques to exploration, development, production, transportation, processing and storage activities.

  • Evaluate commodity price risk and assess its implications for project economics, revenue forecasts, capital allocation and operating margins.

  • Assess country and political risk, including resource nationalism, fiscal changes, export restrictions and government intervention.

  • Evaluate counterparty credit risk across joint venture partners, contractors, suppliers, customers, transport providers and commodity purchasers.

  • Analyse supply chain disruption risks arising from procurement delays, equipment shortages, contractor performance and logistics constraints.

  • Examine the HSE and operational risk interface and understand how safety-critical events affect project continuity, asset integrity and commercial performance.

  • Assess insurance and risk transfer arrangements alongside contractual protections, preventive controls and residual exposure.

  • Develop practical business continuity planning approaches for significant operational and commercial disruption scenarios.

  • Evaluate contingency provision requirements using documented assumptions, scenario analysis and risk-based financial planning.

  • Establish clear risk ownership, mitigation responsibilities, escalation thresholds and monitoring arrangements.

  • Develop meaningful key risk indicators and management reporting practices that support timely intervention.

  • Integrate project risk registers with corporate risk appetite, investment governance and operational performance management.

  • Communicate risk assessments and mitigation recommendations clearly to project leaders, commercial managers and executive decision-makers.

Training methodology

Institute For Oil & Gas Training delivers this course through a practical, business-focused methodology designed around the decision-making responsibilities of oil and gas professionals. The approach combines technical explanations, realistic project scenarios, facilitated discussions, risk assessment exercises and commercial case studies. Each activity connects risk management principles with the operating conditions encountered across upstream and midstream projects.

Industry-Based Case Studies

Participants analyse representative scenarios involving exploration and production assets, pipeline infrastructure, gas processing facilities, export terminals and transportation networks. These scenarios examine events such as commodity price deterioration, contractor insolvency, political intervention, equipment delivery delays and unexpected operational interruptions.

Each case study requires participants to identify the initiating event, underlying vulnerability, potential consequences, existing controls and additional mitigation requirements. This approach develops a consistent method for distinguishing between the source of a risk, the event itself and the financial or operational consequences.

Risk Identification and Assessment Exercises

Participants use structured risk registers, likelihood and consequence assessments, qualitative risk matrices and exposure-ranking techniques. They evaluate the significance of individual risks against defined business objectives, project milestones, financial thresholds and operational requirements.

Exercises also address inherent risk, control effectiveness and residual risk. Participants learn to explain why a risk remains significant after controls are applied and how additional mitigation changes the organisation's exposure profile.

Scenario Analysis and Commercial Simulations

Facilitated simulations explore the effect of changing market and operating conditions on project performance. Scenarios include falling hydrocarbon prices, rising transportation costs, delayed commissioning, restricted access to export markets and unexpected changes in contractual obligations.

Participants compare alternative management responses and assess their implications for cash flow, project schedules, operational continuity and contractual performance. These exercises strengthen the ability to evaluate interconnected risks rather than treating each exposure as an isolated issue.

Cross-Functional Group Exercises

Risk management in the oil and gas sector requires coordinated decisions across multiple business functions. Group exercises bring together commercial, finance, procurement, engineering, operations, HSE and compliance perspectives.

Participants assign risk owners, define control responsibilities, establish escalation criteria and evaluate information-sharing requirements. These activities demonstrate how unclear accountability and fragmented reporting weaken risk management, even when individual departments maintain detailed assessments.

Insurance, Contingency and Business Continuity Workshops

Practical workshops examine how insurance and risk transfer arrangements interact with preventive controls, contractual indemnities, contingency provision and business continuity planning. Participants evaluate the circumstances in which financial protection supports the risk management strategy and identify exposures that remain with the organisation.

The workshops also address business interruption scenarios, alternative supply arrangements, emergency decision-making and recovery priorities. The emphasis remains on developing proportionate and commercially justified responses to credible disruptions.

Facilitated Review and Application

Throughout the programme, participants review their assessment methods, challenge assumptions and refine proposed mitigation plans. The learning process encourages evidence-based judgement, clear documentation and practical recommendations that management can evaluate.

The methodology enables participants to apply the course principles to their own project portfolios, operational assets and commercial responsibilities. The result is a practical foundation for improving risk visibility, strengthening control ownership and supporting consistent decision-making across the oil and gas business.

Organisational impact

Improved Project Risk Visibility

Organisations gain a more consistent understanding of the threats affecting upstream and midstream project performance. Structured assessments help management distinguish between strategic exposures, project delivery risks, financial vulnerabilities and operational hazards.

A common assessment approach supports comparison across assets, contractors, jurisdictions and project phases. Management teams can use this visibility to prioritise mitigation activity, allocate specialist resources and escalate material exposures before they develop into significant commercial or operational problems.

Stronger Financial Planning and Investment Decisions

Commodity price risk, exchange-rate movements, changing operating costs and project delays influence the expected financial performance of petroleum investments. The course strengthens the ability to connect these uncertainties with project forecasts, cash flow expectations, investment appraisals and contingency assumptions.

Improved scenario analysis supports more transparent investment decisions. Project sponsors can evaluate the financial implications of adverse conditions, compare mitigation alternatives and understand how changes in commercial assumptions affect expected returns.

Better Management of Political and Jurisdictional Exposure

Country and political risk can affect licensing arrangements, fiscal terms, export routes, asset ownership and contractual enforceability. A structured assessment process helps organisations identify jurisdiction-specific vulnerabilities and evaluate the business implications of potential changes.

By integrating political and commercial considerations into project planning, companies strengthen their ability to prepare alternative operating scenarios, review contractual protections and establish appropriate escalation arrangements.

More Effective Counterparty and Contractual Controls

Counterparty credit risk can affect receivables, joint venture cash calls, supplier commitments and customer payment obligations. A disciplined monitoring process supports earlier identification of financial deterioration and contractual non-performance.

Organisations benefit from clearer counterparty exposure limits, documented review procedures, more consistent financial monitoring and improved coordination between finance, procurement, legal and commercial teams. These practices support stronger payment-risk management and more informed decisions about contractual safeguards.

Greater Supply Chain Resilience

Upstream and midstream assets depend on reliable equipment, specialist contractors, transportation services and critical materials. Supply chain disruption can delay construction, constrain production, interrupt maintenance and undermine customer commitments.

The course supports better identification of critical suppliers, vulnerable procurement routes, replacement lead times and operational dependencies. Organisations can use these assessments to develop alternative sourcing strategies, improve supplier oversight and prioritise contingency arrangements for critical equipment and services.

Stronger HSE and Operational Risk Integration

Operational risk and HSE exposure often share underlying causes, including equipment failure, inadequate maintenance, procedural weaknesses and contractor deficiencies. A coordinated approach helps organisations connect operational controls with safety and environmental responsibilities.

This improves the quality of risk ownership, escalation and management reporting. It also reinforces the importance of treating safety-critical exposures as operational priorities rather than evaluating them solely through financial consequences.

More Disciplined Insurance and Contingency Management

Insurance and risk transfer decisions are more effective when based on a clear understanding of exposure, policy conditions, contractual obligations and residual risk. The course helps organisations evaluate the relationship between insurance arrangements, deductibles, exclusions, indemnities and retained exposure.

Risk-based contingency provision also supports more transparent project budgeting. By documenting the assumptions behind financial allowances, organisations improve the consistency of planning decisions and reduce the likelihood of treating contingency as an unexplained reserve.

Improved Business Continuity and Recovery Preparedness

Business continuity planning helps organisations establish priorities for maintaining or restoring critical operations following disruption. Structured scenarios encourage teams to identify essential activities, alternative resources, communication responsibilities and recovery dependencies.

These preparations support clearer decisions during operational interruptions and improve coordination between project management, operations, procurement, IT, HSE and corporate leadership.

More Consistent Governance and Management Reporting

A structured risk management framework supports clearer accountability through assigned risk owners, documented mitigation actions, review dates and escalation thresholds. Management reporting becomes more useful when it explains changes in exposure, the effectiveness of controls and the actions required to reduce residual risk.

The organisation can assess progress through practical indicators such as overdue mitigation actions, critical supplier exposure, counterparty limit breaches, changes in residual risk ratings, business continuity exercise findings and contingency utilisation. These measures provide evidence of control performance without relying on unsupported assumptions about guaranteed financial savings.

Personal impact

Stronger Professional Risk Assessment Capability

Participants develop a systematic approach to identifying and evaluating the exposures associated with upstream and midstream projects. They gain confidence in structuring risk assessments, distinguishing causes from consequences and evaluating the effectiveness of existing controls.

This capability supports more consistent contributions to project reviews, operational meetings, investment assessments and corporate risk reporting.

Improved Commercial and Financial Judgement

The course develops a stronger understanding of how commodity price risk, counterparty credit risk, political exposure and operational disruption affect project economics. Participants learn to interpret scenarios, challenge assumptions and explain the financial consequences of alternative management decisions.

These skills strengthen the contribution of commercial, finance and project professionals to budgeting, forecasting, contract reviews and investment planning.

Greater Confidence in Cross-Functional Decisions

Participants improve their ability to communicate risk information across departments with different priorities and technical perspectives. They learn to explain how a single event can affect safety, production, cash flow, contractual performance and customer commitments.

This supports more productive discussions with engineers, procurement specialists, operations managers, finance teams, HSE personnel and senior management.

Practical Insurance and Contingency Skills

Participants gain a clearer understanding of how insurance and risk transfer complement risk prevention, contractual protections and operational controls. They develop the ability to question coverage assumptions, identify retained exposures and contribute to contingency planning discussions.

This knowledge supports more informed collaboration with insurance specialists, brokers, legal advisers, project controllers and financial planners.

Enhanced Leadership and Accountability

Risk management requires clear ownership, timely escalation and disciplined follow-through. Participants strengthen their ability to define mitigation actions, assign responsibilities, monitor progress and communicate unresolved exposure.

These capabilities support leadership effectiveness in project governance, operational assurance and commercial decision-making.

Stronger Career Versatility

The course is relevant to professionals working across project management, petroleum finance, commercial operations, procurement, contracts, HSE, enterprise risk management and business continuity. The ability to assess interconnected project exposures provides a transferable capability across asset development, production operations and midstream infrastructure.

Participants finish with practical methods for contributing to risk reviews, project assurance processes, investment decisions and operational resilience initiatives.

Who should attend

  • Project Directors and Project Managers: To evaluate project delivery threats, prioritise mitigation measures and strengthen governance across upstream and midstream developments.

  • Enterprise Risk Managers: To connect project-level assessments with corporate risk appetite, strategic objectives and portfolio-wide exposure reporting.

  • Commercial Managers: To assess commodity price risk, contractual exposure, commercial uncertainty and counterparty performance.

  • Finance Managers and Financial Controllers: To evaluate financial consequences, cash flow exposure, contingency provision and the implications of adverse project scenarios.

  • Petroleum Economists and Planning Analysts: To examine the effects of market volatility, political developments and operational disruption on project economics and investment assumptions.

  • Upstream Operations Managers: To identify production, asset integrity, contractor and operational continuity risks affecting exploration and production activities.

  • Midstream Operations and Pipeline Managers: To assess transportation interruptions, processing constraints, infrastructure dependencies and service continuity exposures.

  • Procurement and Supply Chain Managers: To identify critical supplier dependencies, contractor vulnerabilities, procurement delays and alternative sourcing requirements.

  • Contracts and Commercial Specialists: To review contractual risk allocation, indemnities, performance obligations and risk transfer provisions.

  • Insurance and Risk Financing Professionals: To evaluate insurable exposures, policy conditions, retained risk and the relationship between insurance and operational controls.

  • HSE Managers and Operational Assurance Specialists: To connect safety and environmental hazards with operational continuity, project exposure and risk escalation processes.

  • Business Continuity and Emergency Planning Professionals: To develop disruption scenarios, recovery priorities and continuity arrangements for critical business activities.

  • Compliance and Governance Professionals: To strengthen risk documentation, accountability, monitoring and management reporting across project and operational activities.

  • Joint Venture and Asset Managers: To assess shared financial exposure, partner dependencies, contractual responsibilities and the risks associated with jointly managed petroleum assets.

  • Senior Executives and Department Heads: To improve oversight of material project exposures, investment decisions, resource allocation and risk-based business planning.

Course outline

This module establishes a structured approach to identifying, classifying, evaluating and controlling project risks across the petroleum value chain. Participants examine the relationship between strategic objectives, project delivery requirements, operational dependencies and corporate risk appetite.

The module considers how risks evolve through exploration, field development, production, pipeline construction, processing, storage and transportation. It also explains how risk registers, assessment criteria, control ownership and management reporting support consistent decision-making across project teams.

  1. ISO 31000

    • Provides internationally recognised principles and guidance for establishing, integrating and improving risk management.

    • Supports structured risk identification, analysis, evaluation, treatment, monitoring and communication.

    • Encourages integration of risk management with organisational governance, planning and decision-making.

    • Provides a basis for developing consistent risk assessment processes across project teams and business functions.

    Learning Outcomes

    • Establish a structured approach to project risk identification and assessment.

    • Distinguish between inherent exposure, existing controls and residual risk.

    • Apply consistent risk-ranking criteria to project and operational scenarios.

    • Develop risk register entries with clear ownership and mitigation actions.

    • Align project risk reporting with organisational priorities and governance requirements.

    • Identify appropriate indicators for monitoring changes in exposure.

This module examines the external commercial and geopolitical factors that influence upstream and midstream investment performance. Participants evaluate how hydrocarbon market movements, fiscal changes, government intervention and resource nationalism affect project economics, asset operations and commercial relationships.

The focus is on converting external uncertainty into structured scenarios that support investment planning, contract evaluation and management decisions. Participants also explore the importance of jurisdictional analysis, market assumptions and documented response strategies when operating across multiple countries.

  1. OECD Guidelines

    • Provide internationally recognised recommendations for responsible business conduct by multinational enterprises.

    • Address areas relevant to petroleum investments, including human rights, environmental responsibilities, disclosure and business integrity.

    • Support due diligence for identifying and addressing adverse impacts associated with business operations and commercial relationships.

    • Help organisations structure responsible business conduct assessments when evaluating investment and jurisdictional exposure.

    Learning Outcomes

    • Evaluate the effects of commodity price changes on project economics and operating decisions.

    • Develop scenarios to assess adverse market conditions and their financial implications.

    • Identify country and political risk factors relevant to petroleum assets and infrastructure.

    • Assess how resource nationalism and fiscal changes influence project assumptions.

    • Establish monitoring indicators for material external exposures.

    • Incorporate political and market scenarios into risk registers and management reporting.

This module focuses on the commercial relationships and supply chain dependencies that influence project delivery and operational performance. Participants assess exposure arising from joint venture partners, suppliers, contractors, commodity purchasers, transport providers and other counterparties.

The module also examines how contractual arrangements, financial monitoring, procurement planning and alternative sourcing strategies reduce vulnerability to counterparty failure. Participants consider the operational and financial consequences of delayed payments, supplier insolvency, equipment shortages and non-performance against contractual commitments.

  1. ISO 20400

    • Provides guidance on integrating sustainability considerations into procurement decisions.

    • Supports systematic consideration of supply chain risks, supplier relationships and responsible purchasing practices.

    • Encourages procurement teams to assess relevant risks throughout the sourcing and contracting process.

    • Provides a framework for strengthening procurement governance and supplier evaluation without replacing contractual due diligence or credit analysis.

    Learning Outcomes

    • Identify and assess counterparty credit exposure across project relationships.

    • Establish practical monitoring measures for financial deterioration and contractual non-performance.

    • Evaluate critical supplier dependencies and potential supply chain interruption.

    • Assess contractual protections and identify gaps in risk allocation.

    • Develop alternative sourcing and supplier continuity strategies.

    • Improve coordination between procurement, finance, contracts and operational teams.

This module examines the relationship between operational hazards, HSE responsibilities, asset integrity and commercial exposure. Participants consider how equipment failure, maintenance deficiencies, process interruptions, contractor activities and environmental incidents affect project performance and business continuity.

The module also addresses insurance and risk transfer as components of a wider risk management strategy. Participants examine the distinction between preventing an incident, allocating contractual responsibility and financing defined consequences through insurance. The emphasis is on understanding retained exposure and ensuring that financial protection complements, rather than replaces, effective operational controls.

  1. ISO 45001

    • Establishes requirements for an occupational health and safety management system.

    • Supports systematic hazard identification, assessment of occupational health and safety risks, and implementation of operational controls.

    • Emphasises leadership, worker participation, performance evaluation and continual improvement.

    • Provides a recognised basis for integrating occupational health and safety management with wider operational risk processes.

    Learning Outcomes

    • Identify operational and HSE exposures that affect project performance and continuity.

    • Assess how asset integrity and operational control failures create wider commercial consequences.

    • Explain the relationship between hazard prevention, contractual risk allocation and insurance protection.

    • Review relevant insurance conditions and identify potential retained exposures.

    • Improve coordination between HSE, operations, insurance and project management teams.

    • Recommend proportionate controls for material operational and financial risks.

This module brings together the course principles through practical continuity planning, financial contingency assessment and management oversight. Participants examine how organisations prepare for major disruptions, establish recovery priorities and maintain essential activities when normal operating arrangements are interrupted.

The module also explores the relationship between risk assessment and contingency provision. Participants consider how documented assumptions, scenario analysis and residual exposure inform financial planning. The final focus is on establishing practical governance arrangements that connect risk ownership, mitigation delivery, monitoring indicators and management decisions.

  1. ISO 22301

    • Establishes requirements for a business continuity management system.

    • Supports the identification of critical activities, business continuity risks and disruption-related impacts.

    • Provides a structured basis for developing, implementing, maintaining and improving continuity arrangements.

    • Emphasises preparedness, response, recovery, testing and continual improvement.

    Learning Outcomes

    • Develop business continuity scenarios relevant to upstream and midstream operations.

    • Identify critical activities, recovery priorities and operational dependencies.

    • Establish clear responsibilities for disruption response and continuity management.

    • Assess contingency provision requirements using documented risk assumptions and scenarios.

    • Distinguish between financial contingency, insurance recovery and retained exposure.

    • Establish practical indicators for monitoring risk treatment and contingency utilisation.

    • Consolidate course learning into a structured risk management and mitigation plan.

Certificate

Upon successful completion of the Risk Management for Upstream & Midstream Projects Training Course, attendees receive a Certificate of Completion from Institute For Oil & Gas Training.

The certificate recognises participation in the professional training programme and completion of its course requirements. Attendees must satisfy the institute's attendance requirement by participating in at least 80 percent of the total scheduled course sessions. The certificate confirms course completion and does not represent a professional licence or an externally accredited qualification.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What is the Risk Management for Upstream & Midstream Projects Training Course about?

The course develops practical capabilities for identifying, assessing and controlling the commercial, financial, political, contractual, operational and supply chain risks affecting upstream and midstream oil and gas projects. It covers commodity price risk, country and political risk, resource nationalism, counterparty credit risk, insurance, business continuity planning and contingency provision.

Who should attend this oil and gas risk management course?

The programme is suitable for project managers, risk professionals, commercial managers, finance specialists, procurement teams, contracts professionals, operations managers, HSE personnel, insurance specialists, business continuity professionals and senior executives responsible for petroleum projects or infrastructure assets.

How is the course delivered?

Institute For Oil & Gas Training uses an applied approach involving industry-based case studies, risk assessment exercises, scenario analysis, group discussions and practical workshops. Participants examine realistic project challenges and develop structured approaches to risk identification, mitigation, reporting and business continuity.

What are the main benefits of attending this course?

Participants develop stronger risk assessment skills, improve their understanding of financial and commercial exposure, and learn to evaluate counterparty vulnerabilities, supply chain dependencies, insurance arrangements and continuity requirements. These capabilities support better project governance, more informed investment decisions and more effective operational risk management.

Do attendees receive a Certificate of Completion?

Yes. Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course and meeting the institute's attendance requirement of at least 80 percent of the total scheduled course sessions.

Next: 12 Oct 2026

4 dates available

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