Conference Brochure

8th Annual International Symposium on

Energy Risk Management Energy Risk 8th Annual International Symposium on

10-12 June, 2009 • Central London, Great Britain

Management 10-12 June, 2009 • Central London, Great Britain

Sponsored BY:

In Association with:

REGISTER TODAY! CONTACT Melanie PHONE:+44 +44207 207 981 2504 Email: [email protected] REGISTER TODAY! CONTACT MelanieMulazzi Mulazzi at at PHONE: 981 2504 or or Email: [email protected] * Please speakersand and topics subject to change * * Please notenote speakers topicsareare subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

Welcome to 8th International Energy Risk Management Executive Symposium – 2009 Dear Symposium Participant, On behalf of Active Communications International I would like to invite you to Central London, Great Britain and 8th International Energy Risk Management Executive Symposium. This Forum is being specifically developed for Senior Risk Management, Trading and Finance Professionals within major utilities, energy, gas and power corporations, investment banks, oil majors, regulators and other energy market participants. We are pleased to invite this group of Industry Leaders who are successfully implementing risk strategies to stabilize your operation, stay competitive and build shareholder value. We are delighted to see such a diverse group of representatives from corporate, private, industrial and government sector, risk management experts, commodity trading Directors, financial analysts, project developers and academics highlighting market-based mechanisms to solve a complex global problem. ACI’s premier 8th International Energy Risk Management Executive Symposium will be looking at how to profitably adapt cutting-edge energy risk management models to the latest market developments. Following the huge success of last year, this Symposium promises to be even bigger and more tailored to your needs than previous years. The Energy and Utilities industries are experiencing significant challenges ranging from continued price volatility, technological advancement, regulatory changes, global competitiveness, political uncertainties and commodity price fluctuations. In addition to the traditional weather and supply risks, energy companies are also faced with new security threats, financial and liquidity concerns and an uncertain regulatory environment. Energy companies need to respond to meet compliance requirements, build brand and company reputation, while sustaining value through commercial operations and investment strategies. This Forum will be also focusing on improving safety and reducing losses in the energy industry. These issues will be addresses during 3-day Symposium. At this Symposium you will hear proven strategies, first hand, from leading organizations, including how: • EDF ENERGY is implementing a robust risk management infrastructure WORLD FUEL SERVICES CORPORATION is building and maintaining a practical, efficient and • effective Risk Management Programme • JP MORGAN CHASE Suggests some of the ways that you can look at credit risk • LUKOil is developing and implementing Enterprise wide Risk Management System for an International Integrated Oil & Gas company – LUKOil experience and discusses world’s financial crisis and its impact onto oil industry • KOCH SUPPLY & TRADING sarl. is implementing and advising about Energy hedging policies in a hyper volatile environment • IBERDROLA GENERACIOÑ is adapting Generation to new challenges The sessions, workshop and networking venues are intended to connect you with relevant players to help you navigate this highly competitive market. Throughout the Symposium, you will hear insight about lessons learned, business opportunities and alliances that will undoubtedly accompany the journey to a future of Energy Risk. I look forward to welcoming you to this important Energy Risk Symposium!

Elena Pitt Director, Energy & Utilities Sector Active Communications International +1-312-780-0700, ext. 208

REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain Hear From the Following Industry Experts

Tom Teixeira, Vice President, Enterprise Risk Solutions, Strategic Thought Group [United Kingdom]

Dan Tomlinson, Director, Galileo Weather Risk Management [United Kingdom]

Alistair Smith, Corporate Risk Director, EDF Energy [United Kingdom]

Konstantin Babourine, Former Vice President, Emerging Markets and Commodity Trading, Morgan Stanley [United Kingdom]

Francis Xavier Shea, Executive Vice President & Chief Risk and Administrative Officer, World Fuel Services Corporation [USA]

Michael Carter, Director of Credit Risk, Eagle Energy Partners (subsidiary of Électricité de France (EDF) [USA]

Bjornar Eide, Director of Risk Management, Sempra Energy Utilities [USA]

Olivier Raevel, VP Structured Products, Koch Supply & Trading sarl. [Switzerland]

Julian Calvo, Vice President of Middle and back Office and Trading IT Systems, Iberdrola Generacioñ [Spain]

Neill Roberts, Global Industry Solutions Leader – Energy, IBM United Kingdom Limited [United Kingdom]

Denis Yanev, Head of Strategic Forecasting and Competitive Intelligence, LUKOIL [Russia]

Susan Lilja, Executive Director, JP Morgan Chase Bank, N.A [United Kingdom]

Michael Schwartz, Chief Marketing Officer, Triple Point Technology [USA]

Key Presentations and discussions: Energy Risk Management – Analyzing the Trends and Predicting the Future

World’s Financial Crisis Path: Slowdown or Recession

Operational Risk and Enterprise Risk Management (ERM) for Energy

Implementing an Energy Hedging Policy in a Hyper Volatile Environment

Adding Value through Enterprise Risk Management

Trading in the Smart Grid Era

Building and Maintaining a Practical, Efficient and Effective Risk management Programme

Managing the Counterparty Credit Risk of Trading Physically and Financially Settled OTC Energy Derivatives

Applying the Risk Management Framework to Infrastructure Projects

Variable Volume Energy Price Risk Management: Weather and Price Combined

Developing and Implementing Your Risk Management System for in International, Vertically Integrated, Oil & Gas Company: The Joint Stock Company LUKOil Experience Spain: Adapting Generation to new Challenges

Can Your Systems Handle The New Era of Risk Management? Lessons from the Credit Risk Trenches: Policy vs. Execution

REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

DAY ONE: 10 June, 2009 13.00 – 13.30 13.30 – 16.30

Registration for workshop Pre-Symposium workshop: Operational Risk and Enterprise Risk Management (ERM) for Energy Presented by: Strategic Thought

This workshop is a must for those involved in Operational risk and Asset Management. This hands-on workshop will present the practical techniques and methodologies required for the development of a robust enterprise risk management (ERM) framework and will include the following topics: • Designing the ERM route map to support your organisation's needs • How to formulate the right ERM framework to support your business model using 'lessons learnt' from recent global events • Getting buy-in from the key stakeholders • Improving the quality of your risk management reporting to support the decision making process • Using the right technology to support your ERM framework • Demonstrating early tangible benefits Tom Teixeira, VP Enterprise Risk Solutions, Strategic Thought Group [United Kingdom] Tom Teixeira started his career in the Ministry of Defence.  During eleven years at the MOD Teixeira achieved a Masters in Defence Systems Engineering and was given an innovation award for developing a risk management system that was rolled out across major defence programmes.  Tom Teixeira joined Strategic Thought from Rolls-Royce where he was Head of Enterprise Risk Management.  Prior to that Teixeira was one of the original members of the Strategic Thought team that kick-started the development of Active Risk Manager and its related services.  Since his return to Strategic Thought he has provided advice to a number of major energy companies helping them to formulate an ERM strategy and measure and monitor operational risk in a dynamic environment. 16.30 – 17.00

Closing Remarks and End of Day One

DAY TWO: 11 June, 2009 08.30 – 09.15 09.15 – 09.30 09.30 – 10.15

Registration and Breakfast CHAIRMAN’S OPENING REMARKS KEYNOTE ADDRESS: ADDING VALUE THROUGH ERM

Successful ERM creates value for an organization by helping it to achieve an appropriate balance between risk and reward, by enabling it to exploit opportunities and mitigate threats effectively and by ensuring that information is provided to key stakeholders to inform business decisions. This presentation will set out how ERM has created value for British Energy. • Implement a robust risk management infrastructure • Ensure that risks are identified, assessed, controlled, monitored and reported effectively • Embed risk management within key strategic and operational processes • Develop and maintain a risk aware culture Alistair Smith, Corporate Risk Director, EDF Energy [United Kingdom] Alistair Smith is the Corporate Risk Director at EDF Energy, having previously been Chief Risk Officer at British Energy from December 2006 until its acquisition by the EDF Group, one of Europe’s largest power companies. The combination of EDF Energy and British Energy forms one of the UK’s largest energy companies. It generates almost 25% of the UK’s electricity from nuclear, coal and gas power stations, combined heat and power plants and wind farms, making it the UK’s largest producer of electricity. It provides power to a quarter of the UK’s population via its electricity distribution networks in London, the South East and the East of England and supplies gas and electricity to over 5.5 million business and residential customers. Prior to joining British Energy, Alistair spent 2 years as Head of Risk Management for Liverpool Victoria, the UK’s largest Friendly Society, and he was previously Enterprise Risk Director at Lloyds TSB Group plc, with responsibility for establishing an enterprise risk management framework. He is a graduate of the University of Birmingham, has an MBA from the Open University, and is an Associate of the Chartered Institute of Bankers. 10.15 – 11.00

Building & Maintaining a Practical, Efficient & Effective Risk Management Programme

• Credit risk scoring and measurement • Credit risk approval and management processes • Performance risk scoring and measurement • Performance risk approval and management processes • Operations risk measurement and management • Market risk measurement and management • Risk concentrations measurement and management • Risk portfolio measurement and management Francis Xavier Shea, Executive Vice President & Chief Risk and Administrative Officer, World Fuel Services Corporation [USA] REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

FRANCIS X. SHEA was appointed Chief Risk and Administrative Officer of World Fuel Services Corporation on January 13, 2005 and has served as our Executive Vice President since September 2001.  From June 2006 to April 2007, Mr. Shea served as our Interim Chief Financial Officer. He previously served as our Chief Financial Officer from July 2002 to January 2005.  From September 1999 to August 2001, he served as director and senior advisor for the Center for Business and Advisory Services, an affiliate of Arthur Andersen, based in Jakarta, Indonesia, that provided consulting and financial services.  He served as the Jakarta, Indonesia representative of our marine fuel services subsidiaries from January 1999 to December 1999.  From February 1991 to December 1994, he also served as President and Chief Operating Officer of Trans-Tec New York. Prior to 1991 Mr. Shea spent almost 30 years with the Chase Manhattan Bank, the last ten of which were spent in a number of senior management positions in Asia 11.00 – 11.15 11.15 – 12.00

Morning refreshments and Exhibition Showcase Trading in the smart grid era

with the advent of smart grid, will come increased demand side load management and distributed generation, time of use based tariffs and volumes of real time data from inetlligent meters and grid infrastructure. Those who systems are not built for this level of scalabitilty will be swamped, but for those that are designing now for the future there is increased opportunity. • The impact of the deployment Smart Grid on trading, risk and the planet • Improved weather forecasting for wind farms • The benefits of informed decision making technologies Neill Roberts, Global Industry Solutions Leader – Energy, IBM United Kingdom Limited [United Kingdom] Neill is currently IBM’s Global Industry Solutions Leader for Energy and Utilities, which requires him to work closely with both clients and IBM development teams to deliver industry specific solutions. This has included the development of an enterprise risk management framework with IBM Research, which covers all business and operational risks. Prior to this, Neill was the head of the energy trading, operations and risk management consultancy practice for IBM Global Services in Europe, Middle East and Africa. Since the 1982 Neill has been providing consultancy services to a range of businesses, and has focused on the regulated sectors such including energy. 12.00 – 12.45 • • • • • • •

Costs & benefits of managing risks. Enterprise Risk Management Benchmarking: Perspectives on ERM and the Risk Intelligent Enterprise Setting the scope of your RM system: Enterprise wide RM vs. focused approach. Risk evaluation & achieving modeling excellence: Approaches, tools & techniques & examples. Developing corporate risk appetite framework: from strategy & benchmarking to risk limits. Incorporation of RM tools into key business processes: strategic planning, capital allocation, mergers & acquisitions, performance management. Managing short term price and currency risks in trading activities, developing an effective hedging strategy.

• • • • • • • • •

STREAM 1: DEVELOPING AND IMPLEMENTING YOUR RISK MANAGEMENT SYSTEM FOR AN INTERNATIONAL, VERTICALLY INTEGRATED, OIL & GAS COMPANY: THE JOINT STOCK COMPANY LUKOLI EXPERIENCE

STREAM 2: WORLD’S FINANCIAL CRISIS:

Crisis and its Impact onto Oil Industry Financial Crisis Crisis Development Paths: Slowdown or Recession Real Economy Crisis Oil Industry Crisis Oil Companies Competitive Position & Possible Response to Crisis Expected Changes within Global Oil & Gas Industry Russian Oil and Gas Top-Management Inquiry about Industry Prospects Russian Domestic Government Support for Oil & Gas Industry

Denis A. Yanev, Head of Risk Management, Strategic Forecasting and Competitive Intelligence, LUKOil [Russia] Graduated from Lomonosov Moscow State University with a masters degree in economics & finance. Speaker for self-developed academic course “Strategic Corporate Finances” at the economics department of MSU. Joined LUKOIL in 2003 as an analyst at Strategy & Investments division, downstream operations. From January 2008 has been head of RM section within the Strategy & Investments division. Previously employed in the investment banking and consultancy sectors.

REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

12.45 – 14.00 14.00 – 15.30

Networking Luncheon INTERACTIVE WORKSHOP: IMPLEMENTING AN ENERGY HEDGING POLICY IN A HYPER VOLATILE ENVIRONMENT

How dramatic changes in economic conditions can constrain your Energy Risk Management policy and how to address these hurdles practically. Looking ahead at a new Credit, Accounting and Regulatory Environment and its likely impact on Energy hedging for the future. • When a “ratable” hedging policy doesn’t work anymore? • When and how to change macroeconomic assumptions for corporate hedging? • Staying ahead of the pack for the next hedging wave. Olivier Raevel, VP Structured Products, Koch Supply &Trading sarl. [Switzerland] Olivier Raevel is Vice President of Structured Products at Koch Supply & Trading Sàrl, based in Geneva, Switzerland. Olivier graduated from HEC Paris in 1991 in Finance and Corporate Strategy. He has been actively involved in the Commodities Derivatives industry for 18 years during which he has advised numerous private and public corporations in Europe, North America and the Middle East on their oil, natural gas, metals and plastics hedging requirements as well as investors on investment solutions. He started his career as an oil options market-maker with SG. He participated to the migration toward electronic trading in commodities derivatives as a founding board member of ICE. Backed by a credit rating higher than 98 percent of rated energy companies, Koch Supply & Trading companies are indirect subsidiaries of Koch Industries, Inc., the second largest privately held company in North America, according to Forbes. Based in Wichita, Kansas, Koch Industries owns companies involved in refining and chemicals; process and pollution control equipment and technologies; minerals and fertilizers; polymers and fibers; commodity and financial trading and services; forest and consumer products. With $100 billion in revenue, Koch companies have a presence in almost 60 countries and employ more than 70,000 individuals. Koch Supply & Trading’s success story has roots in crude oil trading activities by other Koch companies in the 1960s. Today, the company’s trading business includes a broad range of valuable resources such as base and precious metals, power, emissions, natural gas and gas liquids, petrochemicals (aromatics and olefins), refined petroleum products such as gasoline and gasoline components, distillates, naphtha, intermediate feedstocks, fuel oil, crude oil, freight and DoE-indexed derivatives. 15.30 – 15.45 15.45 – 16.30

Afternoon refreshments and Exhibition Showcase spain: Adapting GENERATION to new challenges

The evolution of a vertically oriented utility from a fully regulated environment to market liberalization challenges, pitfalls & success histories. The impact of the regulation. • Developing trading capabilities • Adapting Power Plants Portfolio • Setting-up Risk Culture Julian Calvo Moya, Vice President of Middle & Back Offices and Trading IT Systems, Iberdrola Generacioñ [Spain] Mr. Julian Calvo Moya was graduated in 1996 with Master Degree on Electrical Systems and Industrial Engineering from the Madrid Technical University. Prior to his appointment as Vice President of Middle and Back Offices and IT Trading Systems in 2008, he held various positions within Iberdrola – he was Electricity Trader from 1998 to 2001 and Risk Analysis and Quality Assurance Director from 2001 to 2008. Mr. Calvo was also a Consultant for NORSISTEMAS, IT Branch of Unión Fenosa’s Group. Other professional experience includes: Electricity Markets Professor in the ‘Antonio de Nebrija’ University MBA and Speaker in conferences regarding Long term Generation planning, Energy Markets Risks, Renewable Energy in Markets, Combined Cicle Operation and Dispatching, etc. 16.30 – 17.15 How can Risk Management Software support the successful deployment of your ERM Strategy? • What to look for in ERM software? • Key elements of a good change programme • Supporting the decision making process • Integration of risk management with financial and strategic planning • Using software to improve communication Tom Teixeira – VP Enterprise Risk Solutions, Strategic Thought Group [United Kingdom] Tom Teixeira started his career in the Ministry of Defence.  During eleven years at the MOD Teixeira achieved a Masters in Defence Systems Engineering and was given an innovation award for developing a risk management system that was rolled out across major defence programmes.  Tom Teixeira joined Strategic Thought from Rolls-Royce where he was Head of Enterprise Risk Management.  Prior to that Teixeira was one of the original members of the Strategic Thought team that kick-started the development of Active Risk Manager and its related services.  Since his return to Strategic Thought he has provided advice to a number of major energy companies helping them to formulate an ERM strategy and measure and monitor operational risk in a dynamic environment. 17.15 – 17.30 17.30

Closing Remarks from the Chairperson Cocktail Reception and End on Day Two

REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

DAY THREE:

12 June, 2009

08.30 – 09.15 Registration and Breakfast 09.15 – 9.30 CHAIRMAN’S OPENING REMARKS 9.30 – 10.15 Variable volume Energy Price Risk Management: Weather and Price Combined Managing the multiple problems of price volatility when supply or demand volumes are not yet knowing gas, power and carbon. Dealing with weather based operational risks with a market price element. Alternatives to physical storage or flexible supply contracts for managing volume risk. • Combine volumetric and price hedging strategies efficiently. • Understand current uses in international Gas and Power Markets. • Combine with Carbon Hedging to produce portfolio level hedges. Dan Tomlinson, Director, Galileo Gas, Power and Weather Risk Management [United Kingdom] Dan Tomlinson is Director of European and non US business at Galileo Weather Risk Management and is based in London, UK. Dan holds a Masters Degree from Oxford University and has been active in the Financial Products Sector for 14 years of which the last 8 have been involved in the financial management of weather risks combined with commodities. He started his financial career at Deutsche Bank in its Investment banking division and has since worked at The UK Met Office and XL Insurance Company before joining Galileo to head its European operations. Galileo Weather Risk Management is a specialist risk taker in the field of weather risk management. They are owned by the White Mountains Insurance Group, their transactions are A- rated by S&P and offer structured financial products globally which are designed to help remove weather and commodity related financial risk from the operations of their client companies.

- 11.00 10.15



Lessons from the credit RISK trenches: policy vs. eXECUTION

This presentation will initially discuss policies and procedures designed to mitigate counterparty credit risk and then highlight the ease with which they can fail. It will include numerous real-life examples of such failures – including those due to shortcuts, oversights, and fraud • Holistically consider the risks associated with energy and derivatives trading • Proactively challenge their company’s execution of policies and procedures regarding credit risk management • Appreciate the importance of seemingly insignificant contract terms in various contracts, agreements, and collateral instruments. Michael Carter, Director of Credit Risk, Eagle Energy Partners (subsidiary of Électricité de France (EDF) [USA] Michael Carter is the Director of Credit Risk for Eagle Energy Partners in Houston, Texas. Eagle is a unit of London-based EDF Trading Limited. Prior to joining Eagle, he spent over 20 years in the energy industry – mostly in treasury and credit risk-related roles. He started the initial credit departments of Dynegy Inc. and Southern California Edison Company and was Credit Manager of Crude, Products, and Liquids in Chevron’s Global Supply and Trading organization in Houston. He is the author of numerous published articles related to credit risk, has developed and presented several Enterprise Credit Risk Management courses, and is a frequent speaker before several energy industry groups. He holds a Bachelors of Science degree in Accounting and an MBA in Finance from the University of Houston. . 11.00 - 11.15 11.15 - 12.00

Morning refreshments and Exhibition Showcase Key topics in commodities risk management - front-to-back office

This presenation will discuss most of the issues that all risk managers face while trying set up risk management and control functions within the organization. price risk management is not only about chosing the right strategy and rigorous execution but also about having all the support functions in tune with an overall hedging programme. ATTENDEES WILL LEARN HOW TO: • Risk management program design • Identifying risks, assessing exposure and choosing a suitable hedging strategy • Risk control and monitoring functions • Front line execution excellence • Collateral management • Mid and back office issues Konstantin Babourine, Former Vice President, Emerging Markets and Commodity Trading, Morgan Stanley [United Kingdom] Konstantine Babourine is a Principal at the Mindstone Consulting, a company focusing on providing advisory and educational services in the field of commodity risk management and trading. Konstantin has 12 years of experience in the energy sales and trading across the globe. Throughout these years he was involved in various aspects of derivatives and physical trading of oil products and natural gas. Prior to starting up his own consultancy venture Konstantin worked as a Vice-President in Morgan Stanley Commodities Trading Department in charge for derivatives sales and deal structuring in energy sector, metals and agricultural products across the FSU and Eastern Europe region. His other work experiences include working as an Executive Director for Goldman Sachs and Senior Originator for BP Integrated Supply and Trading in the US and UK. He holds an MBA in Finance from Iowa State University and an Aerospace Engineering Degree with distinctions from Moscow Aviation Institute, Russia REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

12.00 - 12.45

Can your systems handle the new era of risk management

You have survived the current storm so far. Are you ready for the next one? More than ever, companies need a reliable view into the risks they face. This can only be achieved with a complete real-time picture of the business. Greater insight and a more complete view of all risks are needed to meet today’s requirements for efficiency, transparency and agility. This presentation provides the systems framework required to proactively manage risk in a business environment marked by tighter credit, greater volatility and more stringent regulations. • Learn why market, credit, operational and regulatory risk must be tightly integrated • Understand how to eliminate risk silos and gain a single version of the truth • Discover the must-have requirements for total risk management in today's volatile commodity markets Michael Schwartz, Chief Marketing Officer, Triple Point Technology [USA] Michael Schwartz serves as chief marketing officer for Triple Point Technology. He directs the planning and execution of Triple Point’s marketing and communications initiatives in all global markets. Before joining Triple Point, Mr. Schwartz founded New York-based Celcius Marketing, a marketing consultancy focused on goto-market strategies for early stage technology companies. Prior to leading Celcius, Mr. Schwartz served as the top marketing executive for Information Builders, eXcelon Corporation and C-bridge Solutions. He began his career with IBM Corporation. Mr. Schwartz is a frequent speaker at energy and commodity events and holds an M.B.A. from New York University’s Graduate School of Business Administration. 12.45 - 14.00 14.00 - 14.45

Networking Luncheon Managing the counterparty credit risk of trading physically and financially settled OTC energy derivatives

• Measurement of exposure - examine different ways to manage exposure and the pros and cons of each methodology • Counterparty analysis - ways in which you can try to evaluate counterparty risk • Documentation - choice of document and credit related terms and conditions • Risk mitigation techniques - what you can do to mitigate some of the counterparty risk associated with trading Susan Lilja, Executive Director, JP Morgan Chase Bank, N.A [United Kingdom] Susan Lilja has been employed by JPMorgan for 14 years in a number of different risk management roles, covering securities, acquisition financings, metals and mining and in recent years commodities trading. In addition, Susan heads up the collateral risk management function for the EMEA region related to the OTC derivatives book. 14.45 - 15.30

APPLYING the risk management framework TO INFRASTRUCTURE projects

Large infrastructure projects are subject to many financial challenges, but can also create opportunities for organizations that ensure a proactive application of the Risk Management Framework. This presentation will focus on how risk quantification, monitoring and management processes can enhance the control, communication and NPV expectancy of a project. • Ensure identification and communication of fixed and variable cash flows in projects • Apply risk measures to expected cash flows • Utilize risk measures in the overall communication of NPV numbers • Separate project risk measures into the following categories; a. Market / Economic / Volumetric Risk b. Credit Risk c. Operational risk • Applying risk measures to communicate / control / mitigate the two tailed NPV distribution Bjornar Eide, Director of Risk Management, Sempra Energy Utilities [USA] Bjornar Eide has been a Director of Risk Management for Sempra Energy Utilities since September 2005. Bjornar oversees the risk governance structure for San Diego Gas & Electric and Southern California Gas Company. He is a member of the Risk Management Committee for each of the utilities, which is responsible for managing each of the utility’s exposure to market, credit, liquidity and operational risk. Bjornar has over 15 years of experience from energy markets, serving in a variety of capacities in an international environment. Prior to joining Sempra Energy Utilities, he worked as an independent strategic risk consultant for a variety of clients in Europe and the US focusing on strategic risk management related issues and the design of risk assessment capability. As a Director of Risk Management for NRG (from 2000 – 2002) he built up the risk management department and during his four year tenure with Statoil A/S as a portfolio manager, he actively managed positions that involved petroleum products, crude, natural gas & electricity including the build-up of the power marketing department. Eide holds an MBA in Finance from San Francisco State University and a BA in Business Administration from California Lutheran University. REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain

15:30 - 16.30

Roundtable Discussion /Panel: Energy Commodities Trading- Trends in Product Sophistication Offerings

This roundtable discussion aims to gather the energy players to examine the heightened interest in energy trading, the growth in the energy market and the impact on the development of sophisticated product offerings. The opportunities in the energy market, the demand for commodities risk management and derivative products from the energy companies, what the investors want and the battle for dominance will also be discussed. • Divest assets by energy companies and acquisition by major banks • The expansion of the energy market- what are the opportunities for the banks, energy companies and the investors? • What are the innovative commodity risk management and derivative product offerings for energy companies and investors? • Collateralized commodity obligations (CCO’s) • Derivatives and structured products • Options markets Energy Companies Financial Institutions Energy Brokers and Traders 16.00

Closing Remarks from the Chairperson and End of the Symposium

ACI would like to thank our Sponsors Strategic Thought Group

Strategic Thought Group, the risk and reward company, provides world-class enterprise risk management software and services to many of the globe’s leading companies. Active Risk Manager (ARM), launched in 2001 was the first and now the most widely used web-based enterprise risk management software system. ARM increases the quality and efficiency of management processes by providing a single solution to help reduce reoccurring losses, issues and risks with the necessary mitigation strategies. ARM’s unique qualities are in its ability to support multi-cultural processes from different departments (corporate, audit, management, projects) consolidating data from multiple sources and providing multiple views determined by risk appetite and maturity. The ability to quantify actual and forecasted data to determine the return on investment obtained from risk mitigation is a key driver to increasing profit margin. The returns from using ARM include reduced insurance premiums, increased efficiency, speed and quality of reporting and applying the correct levels of provision to generate more revenue and achieve the objectives of the business. ARM allows risks to be linked into key performance indicators (KPIs) and KPIs to be linked into the business plan; therefore enabling an organisation to meet the goals of the business plan through successfully managing the risks that could impact KPIs. ARM provides a risk adjusted view of corporate performance against the business plan. For more information please visit: www.strategicthought.com

PLATTS Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is the market leader for independent real-time news, pricing, and data for the energy and metals markets. From our 17 worldwide offices, we create market transparency and drive better decision-making for traders and investors in more than 150 countries. More information is available at www.platts.com.

PARADIGM Paradigm Strategy Group, Inc. was established by a team of senior risk management practitioners. The founding objective of the company is to provide practical non-theoretical training in energy derivatives, and related risk management technologies. Our programs are tailored to the specific needs of today’s dynamic energy industry. Paradigm’s instructors bring to the classroom over 30 years of hands-on experience working in related business areas. Paradigm’s programs are designed to excite participants by knocking down the myths and concepts built around derivative products. Drawing on trading room and line experience, Paradigm courses show participants how to succeed in their careers and increase their employer’s earnings by using derivative products and risk management skills. REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *

8th Annual International Symposium on

Energy Risk Management 10-12 June, 2009 • Central London, Great Britain CONFERENCE FEES AND REGISTRATION Two Days Conference fee: £1,395 + vat Two Days Conference fee + Pre Conference Workshop: £1,745 + VAT Conference Documentation CD £395 + £10 p&p (non-vatable) Key reason to attend: • A tailored Programme featuring issue-led debate on how to develop optimal energy risk management strategies • An outstanding opportunity to engage and form contacts with the industry risk experts, leading financial and Brokerage institutions, policy and regulatory shapers and trading software providers • Enhanced networking opportunities with a targeted audience including Networking Breakfasts, Lunches and Cocktail Receptions Who will attend? This Symposium is design to inform high-level professionals in the Energy, Power, Oil & Gas and Utilities Industries, Investment Banks, Energy Commodities Trading Organizations, Regulatory Officials and those associated with the following titles: Chief Risk Officers • Chief Financial Officers • Treasures EVPs, SVPs, VPs and Directors of Risk Management • Commodity Trading • Regulatory Affairs • Pricing and Hedging Fuels and Wholesale Power • Structured Products • Pricing and Structure Engineering and Commodity • Strategic Planning and Policy Development Previous attendees Testimonials: “I enormously enjoyed the entire Symposium. I deeply appreciate the atmosphere of friendliness, openness and enthusiasm that you and your Colleagues helped to created at the Symposium” Managing Director of Quantitative Research & Risk Analytics, Platts, a Division of McGraw-Hill Companies “Excellent! – “Great content” – Vice President, Paradigm Strategy Group

Vice President, Strategic Planning and Performance Management, Atlantic LNG

“Exceptional great customer service” –

“Great! Very practical and Exciting Forum!” –

Sales Executive, Triple Point Technology

Head of Risk Management, LUKOil

“Overall great Conference, very well done” – Director, Stream Gas and Electric

“Excellent Forum” – Director of Risk Management, Sequent Energy

“Excellent” –

“Excellent job overall”

Director, Quantitative Services, SUEZ Energy N.A

Director of Derivatives Management and Control, World Fuel Services Corporation

“Very helpful and friendly [on-site conference administration], nice light touch” –

“Very satisfied with content”

Vice President, Enterprise Risk Solutions, Strategic Thought Group

Managing Director, MRE Consulting REGISTER TODAY! CONTACT Melanie Mulazzi at PHONE: +44 207 981 2504 or Email: [email protected] * Please note speakers and topics are subject to change *