Portfolio Management Training Seminar

1. Portfolio Management Training Seminar The Petrotrin Experience Saheed Kenku SIS Product Champion – Portfolio Management

2. Outline • About Petrotrin • Opportunity Initiation • The Original Plan • The Preparation • Execution • Lessons Learned • The Revised Plan • Group Project • Results • Future

3. About Petrotrin - Introduction Petroleum Company of Trinidad and Tobago Limited, integrated oil company incorporated January 1993, is fully owned by the Government of the Republic of Trinidad and Tobago. • the business entity making the single largest contribution to the national GDP, our activities touching in one way or another a full ten percent of the population • third largest direct employer and by far largest indirect employer Involved in: • land and marine exploration, development and production,  • transfer of crude oil from our oilfields to our refinery • purchase of crude oil on the international markets • Manufacture of petroleum products including: LPG, Gasoline, Sulfur Bitumen • professional services including: IT &Training

4. About Petrotrin – Key Statistics • Share Capital             -  379 million US$ • Crude Production        -    48,047 mbbl/day • Proven Crude Reserves   -    439,585 mbbl • Proven Gas Reserves     -     439,585 mscuft  • Refinery Capacity           -     165,000 bpd • Land Holdings                -    1,412,253 acres

5. About Petrotrin - Evolution

6. Opportunity Initiation • SIS forum Miami – October 2003 • Observation of strong Petrotrin interest in PM seminars • SIS Technology Showcase – November 2003 • Demonstration of SIS solution offerings • Spotlight on PM • Indication of Petrotrin PM needs • Proposal delivered - December 2003 • Proposal approved – January 2004 • Accenture involved in strategy engagement • June milestone for budget aligned to strategic plan

7. The Original Plan - Structure • 5 day PM course • Similar structure to other offerings in the market place • Each of the the first 4 days comprising of: • Theory & process • Practical exercises using SIS software • Open discussion on implementation topic OR case study • Group project and presentations on day 5 • Customization achieved through initial survey completed by staff lead

8. The Original Plan – Content Focus • Day 1 - Corporate Planning & Portfolio Management • Custom session - Decision & Risk Analysis • Case studies – based on Ecopetrol & Woodside experience • Day 2 - Portfolio Optimization • Open discussion: The role of software • Day 3 - Strategy Development, Feasibility Testing & Review • Day 4 - Portfolio Analysis • Open discussion: Towards successful PM implementation • Day 5 - Group Project

9. The Preparation Mid January - Mid February 2004 • Commercial Proposal • Potential Instructors – Saheed, Bryan, Craig, & Michael • Résumé's • Survey • Course Introduction - Outline, Objectives, Pre-requisites • Course Notes (adapted) • Exercises (adapted) – software based • Project (adapted) • References – Papers, quotes, books etc. • Course Presentation Slides • Facilities • Software & licensing • Logistics

10. Execution • Went according to the original plan • on schedule & on budget • Minor issues • Some inadequate hardware in Petrotrin learning center • Software installation left until 11th hour – Sunday! • Managing 18 participants • Carnival time in TnT • 1.5 hour commute to learning center

11. Lessons Learned • Petrotrin context was weak • Wrong survey & wrong surveying technique • Course material, exercises & project were too generic • R&M context was weak • Clearly more biased towards E&P • Process flow not clearly established at the start • Participants were learning a lot but not connecting topics and theories with systematic process • Don’t wait till the end for it to come together. Establish this at the start! • Manage the workshop and manage individual customers evolving needs at the same time • Monitor sentiment regularly

12. The Revised Plan – Day 3 • I asked “How should we best focus the remaining 2 days”? • No response…..Participants were somewhat overwhelmed with material without much context and no clear process flow. • Became very concerned • Changed Day 3 focus to gathering Petrotrin specific context as a group. • Used standard pre-implementation assessment questionnaire • Modified group project • Got Petrotrin data into the software • Day 4 – Used Petrotrin jargon in all content, demonstrated their data & established a clear PM process flow (the 8 steps) • Day 5 – New group project – no software, 100% Petrotrin context, 100% analysis & presentation

13. Group Project

14. Group Project - Strategy

15. Group Project – Project Data

16. Group Project – Data Provided • Results of 6 good portfolios – goal performance & composition • Value Vs. Risk plot for all 6 good portfolios x 6 x 6

17. Group Project – Data Provided (contd.)

18. Group Project - Questions

19. Results • Successful engagement • Positive evaluations from participants – average score about 4 on a 5 point scale • Met the expectations of stakeholder • High profile event at Petrotrin • Obtained valuable information the Petrotrin’s PM initiative • Built relationships • Left a very strong impression on SLB PM domain expertise and technology

20. Future • Re-brand as APO offering • Use lessons learned • Leverage business consulting experience • Adapt material • Expand instructor/facilitator pool • Develop commercial model • Sell more of these • KOC, PDO, Talisman….other potential prospects

21. Certificates

22. Portfolio Management Training Seminar The Petrotrin Experience Saheed Kenku SIS Product Champion – Portfolio Management