3 Day Masterclass Commercial Aspects of Oil Refining | Terrapinn Training
3 day Masterclass

Commercial Aspects of Oil Refining



This 3 Day Masterclass is designed to provide an overview of crude oil and refining process covering physical and commercial aspects of refinery operations and economics.

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expand your knowledge

Master the fundamentals of refinery configuration and its impact on economies

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learn from the best

Industry leaders will show you how refinery operations can be optimised

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develop new skills

Learn how to successfully negotiate oil sales & purchase contracts


The course will offer effective and practical knowledge of commercial parameters in oil refining and trading. It will make attendees understand how crude supply and products trading can improve refining margins and how commercial decisions are made for refinery economics and planning. The course material covers refining process, refinery economics, crude selection, oil pricing, supply and trading, marine freight, and project economics using real-life examples generally practices in refining and marketing organisations.

In just 3 days you will:

  • Fundamentals of refinery operations and economics
  • Refinery configuration and its impact on economics
  • Calculation of feedstock cost and refining margins
  • How crude oil and product markets are structured
  • How refining operations are optimized
  • Calculating freight cost and voyage economics
  • Arbitrage trade and calculating trading margins
  • Negotiating Oil Sales/Purchase Contracts
  • Managing cargo operations and documentation
  • Developing operating and business plans

Organisations that will benefit:

  • Oil and Gas companies
  • Refineries and petrochemicals
  • New players in the oil industry
  • Government Agencies
  • Banks and financial institutes
  • Legal and insurance entities
  • Shipping industry
  • Storage and terminals
  • Commodities and oil traders

Who will attend:

  • Oil and Gas Engineers
  • Planning Engineers/Managers
  • Marketers and Traders
  • New entrants to the downstream oil functions
  • Business Analysts
  • Product Managers
  • Banking and Government officials dealing with petroleum downstream
  • Finance and Accounting Analysts

Course Agenda

  • Introduction to oil industry
  • Overview of refinery operations
  • Refinery configuration
  • Impact of configuration on economics
  • Refinery operating cost
  • Crude oil types and characteristics
  • Crude selection and types of Feedstock
  • Products yield and GPW
  • Calculation of refining margins
  • Case Study: Assessing three different refinery configurations and its impact on refinery profitability
  • Problem Solving: Calculating gross refining margins for different crudes for base load and incremental crude runs and identifying optimal mode of operations
  • Introduction to refined products
  • Products grade and classification
  • Products specification and its implication
  • Products blending (gasoline, gas oil and fuel oil)
  • Gross, variable and cash margins
  • 3-2-1 crack spread
  • Refinery economics and planning
  • Developing operating and business plans
  • Project economics and cash flow
  • Refinery investments
  • Case Study: Developing optimal product mix and crude throughput levels for a typical refinery from a range of crude oil grades which will maximize profits under different pricing scenarios.
  • Problem Solving: (1) Calculating 3-2-1 crack spread under different crude and pricing environment and making commercial decision for selecting crudes and refining operating modes. (2) Running simulations for products blending including octane cost/economics for gasoline and cutter stock for fuel oil. Attendees will also learn how to minimize economic penalty for quality giveaways.
  • Overview of global refining
  • Physical markets and trading hubs
  • Oil pricing and role of benchmark
  • Shipping and freight economics
  • Cargo delivery modes (FOB, C&F, Ex-Ship)
  • International oil supply and trading
  • Cargo nominations and operations
  • Price exposure and risk management
  • Hedging techniques
  • Case study / Exercise
  • Case Study: Running an interactive simulation for crude oil and products trading involving different pricing structures and various delivery modes in a real world.
  • The attendees will also learn how spot barrels are traded and how arbitrage trades are done.
  • The 2nd Case Study will focus on shipping economics and cargo operations and how economies of scale in shipping can affect trading margins
  • Problem Solving: (1) Market structure and its implication on storage economics. (2) Calculation
  • of netback pricing. (3) Worldscale and voyage costing. (3) Managing trading risk using future
  • contracts and hedging techniques. (4) Analyzing oil contracts from commercial aspects.

For further information please call: +44 (0)207 092 1045

  • “The depth and knowledge of my trainer was extremely impressive. In 3 days I have had, without a doubt, a masterclass on the industry. Truly world class.”

    - Gordon Dowall Potter, Past Delegate

  • “Well worth 3 days of study!”

    - Syed Hamza, Past Delegate

  • “The training was excellent! I give it a 10 and will get my trainer's support for my next challenges.”

    - Head of Partnerships & Customer Loyalty at Avis Budget, Past Delegate

  • “Extremely constructive course with a very good dynamic and passionate trainer.”

    - Managing Director at BNP Paribas, Past Delegate

  • “Impressive and cooperative trainer who wanted to make sure the delegates understood.”

    - Budgeting, Planning & Reporting Manager, Past Delegate


We can come to you too! If you have a team of six or more, why not hold a private course? Our experts come to you and the course is tailored to your requirements.

Call +44 (0)20 7092 1045 (United Kingdom)
or +65 6322 2333 (Asia Pacific)
for more details