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An Intensive 2-Week Training Course

The 10-Day Advanced Project Economics
& Risk Management for Oil & Gas Professionals

Improve Decision Making and Increase Investment Effectiveness

Print this Course

Code Date Venue Fee($)
PM139 15 - 26 Jul 2019 London - UK 11,900

*All fees are exclusive of VAT


The Structure

This comprehensive training course consists of two modules which can be booked as a 2-week Training event, or as individual, 5 Day courses.

Module 1 - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

Module 2 - Advanced Oil & Gas Project Economics, Risk & Decision Analysis


Daily Agenda click here

Module 1 - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

Day One: Fundamentals of Decision Analysis

  • What is project decision analysis?
  • Selecting projects to meet organizational goals
  • Defining projects, identifying key decision-making factors
  • Risk and uncertainty in projects
  • Fundamental tools of engineering economics
  • Time value of money, compounding, discounting, annuity
  • Appraisal methods (payback, Discounted Cash Flow, Net Present Value (NPV), Equivalent Annual Value (EAV)
  • Financial analysis using Microsoft Excel

Day Two: Rate of Return and the Cost of Capital

  • Rate of return computations (IRR)
  • Advantages and disadvantages of profitability models
  • Estimating the cost of capital for a project
  • Benefit-Cost Ratio (BCR)
  • Comparing mutually exclusive projects with equal lives; comparing projects with unequal lives
  • Using NPV, IRR, BCR, EAV in project selection
  • Comparing mutually exclusive projects using incremental benefit-cost ratios

Day Three: Cash-Flow Modelling and Project Decision Analysis

  • Project decisions and total cost of ownership
  • Financial modelling and project evaluation: Capital Expenditures (CAPEX), Operating Expenditures (OPEX), Working Capital requirements, Incremental costs and benefits, Terminal cash flows
  • Preparing cash flow projections (cash flows vs accounting profits, inflation, opportunity costs, overheads and synergies, sunk costs, depreciation, taxation, interest, insurance, etc)
  • Developing cash flow models and testing assumptions
  • Business case content

Day Four: Decision Analysis - Expected Value Concept

  • Overview of the risk management process
  • Risk tolerance and risk prioritization
  • Risk quantification and Expected Monetary Value (EMV) concepts
  • Decisions under certainty, risk and uncertainty
  • Basic Probability Concepts
  • Probability applications: Program Evaluation Review Technique (PERT), Monte Carlo Analysis
  • Assessing the probability of completing a project within the desired budget
  • Contingency

Day Five: Decision Analysis - Decision Trees, Scenario, Sensitivity Analysis and Simulation

  • Decision tree analysis
  • Scenario analysis
  • Sensitivity analysis and tornado diagram
  • Integrated practical application
  • Presenting decision analysis

Module 2 - Advanced Oil & Gas Project Economics, Risk & Decision Analysis

Day Six: Development Economics

  • A Brief History of Energy Usage
  • Principles of Development Economics
  • Understanding of Economic terms
  • Inflation and its impact on Nominal & Real Cash Flows
  • Project Financing

Day Seven: Uncertainty in Investments

  • Handling uncertainty in Capital Projects
  • Understanding Probability Concepts
  • The expected Value Concept: Features and pitfalls
    • Expected monetary value (EMV)
    • Expected profitability index (EPI)
    • Expected opportunity loss (EOL)

Day Eight: Risks and Uncertainties

  • Risk & Uncertainty
  • Risk eversion and risk premium
  • Exploration project threats and opportunities
  • Economic decision criteria
  • Decision Tree Analysis
  • Probability Distribution
  • Case study: Monte Carlo Simulation

Day Nine: Setting up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • Cash Flow Analysis
    • Sensitivity analysis calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Class exercises: Setting up an oil field Project

Day Ten: Practical use of the @Risk add-on: Oil Field Development Model

  • Developing an Integrated Economic Model of an Oil Field Development
  • Developing and using an @Risk model analysis
  • Project sensitivity analysis utilizing data from @Risk model
  • Course final review and close

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Home » Courses » Project & Construction Management » The 10-Day Advanced Project Economics & Risk Management for Oil & Gas Professionals
PetroKnowledge Training


The 10-Day Advanced Project Economics
& Risk Management for Oil & Gas Professionals

Improve Decision Making and Increase Investment Effectiveness


Code Date Venue Fees
PM139 15 - 26 Jul 2019 London - UK $11,900



The Structure

This comprehensive training course consists of two modules which can be booked as a 2-week Training event, or as individual, 5 Day courses.

Module 1 - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

Module 2 - Advanced Oil & Gas Project Economics, Risk & Decision Analysis


Daily Agenda

Module 1 - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

Day One: Fundamentals of Decision Analysis

Day Two: Rate of Return and the Cost of Capital

Day Three: Cash-Flow Modelling and Project Decision Analysis

Day Four: Decision Analysis - Expected Value Concept

Day Five: Decision Analysis - Decision Trees, Scenario, Sensitivity Analysis and Simulation

Module 2 - Advanced Oil & Gas Project Economics, Risk & Decision Analysis

Day Six: Development Economics

Day Seven: Uncertainty in Investments

Day Eight: Risks and Uncertainties

Day Nine: Setting up Spreadsheet Calculations Using Excel

Day Ten: Practical use of the @Risk add-on: Oil Field Development Model

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© 2018. Material published by Petroknowledge shown here is copyrighted.

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PetroKnowledge is one of the exclusive group of training providers who have been awarded the prestigious ISO 29990:2010 accreditation.

ISO 29990:2010 ISO 29990:2010 & ISO 9001:2015

Our Training Partners

We are an approved training provider and partner to over 10 global institutions. We believe in training excellence and our partners are a testament to that commitment.

Institute of Leadership & Management
Institute of Marine Engineering, Science and Technology
 Maintenance & Reliability Professionals
Energy Institute
merican Society for Nondestructive Testing
American Welding Society
Project Management Institute
German Association for Water, Wastewater and Waste (DWA).

The PMI® Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.