Petroknowledge

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 PetroKnowledge training course is split into two modules:

MODULE I - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

MODULE II - Advanced Oil & Gas Project Economics, Risk & Decision Analysis

Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a two-week training course.

 


Daily Agenda

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

Day 1

Fundamentals of Decision Analysis

  • What is Project Management Decision Analysis?
  • The Purpose of the Project Business Case
  • The need for systematic Risk Management for Decision-Making
  • Risk and Uncertainty on projects
  • Option analysis
  • Identifying key decision-making factors

Measures of Project Profitability

  • Fundamental tools of engineering economics
  • Time Value of Money
  • Appraisal Methods - Discounted Cash Flow Projections
  • Time Equivalence

Day 2

Cash-Flow Modelling and Project Decision Analysis

  • Financial Modelling and Project Evaluation
  • Rate of Return Computations (IRR)
  • Determining the Internal Rate of Return (IRR)
  • The Risk of not understanding IRR

Analysing Project Specifics

  • Understanding the Project Context to assist in decision-making
  • Determine stakeholders and their level of influence
  • Capture Requirements
  • Determine Scope of work

Day 3

The Cost of Capital

  • Capital & Operating Expenditures (CAPEX/OPEX)
  • Estimating the Cost of Capital for a Project
  • Benefit-Cost Ratio (BCR)
  • Dis-benefits

Risk Modelling in Practice

  • Identify Risks
  • Forecasting Risk Impacts & Probabilities
  • Opportunity Costs, Sunk Costs & Salvage Value of a Project
  • Determining the Risk Priorities
  • The need for Company Cash Flow

Day 4

Decision Analysis: Expected Value Concept

  • Basic Probability Concepts
    • Fundamental Probability Concepts
    • Mutually& Non-Mutually Exclusive, Independent Events
  • Quantitative Project Risk Analysis
    • Semi-Quantitative Bow-Tie Process
    • Detailed Risk Quantification and Prioritisation
    • Expected Monetary Value
    • Scenario Planning
  • Sensitivity Analysis Tools
    • Simulation Process
    • Tornado Diagram
    • Defining the Variables - PERT

Day 5

Decision Trees, EMV, Risk Responses and ROI

  • Decision Tree Analysis
    • Developing Decision Trees
    • Solving Decision Trees
  • Risk Responses
    • Developing Risk Responses
    • Evaluating Response Relevance
  • ROI Analysis
    • Understanding ROI
    • Identifying ROI
    • Evaluating and Presenting your Project options

Module II: Advanced Oil & Gas Project Economics, Risk & Decision Analysis

DAY 6

Development Economics

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

DAY 7

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 8

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 9

Setting-up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • CashFlow Analysis
    • Sensitivity Analysis Calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Class Exercises: Setting-up an Oil Field Project

DAY 10

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
  • Training Seminar Final Review and Close

 

 

Accreditation

PMI Registered Education ProviderThe Registered Education Provider (R.E.P. ID:4349) status with the Project Management Institute (PMI®) enables PetroKnowledge to issue applicable Professional Development Hours/Units (PDHs/PDUs) to participants on this training course, to help you achieve or maintain PMI® professional credentials.

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

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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 PetroKnowledge training course is split into two modules:

MODULE I - Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

MODULE II - Advanced Oil & Gas Project Economics, Risk & Decision Analysis

Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a two-week training course.

 


Daily Agenda

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

Day 1

Fundamentals of Decision Analysis

Measures of Project Profitability

Day 2

Cash-Flow Modelling and Project Decision Analysis

Analysing Project Specifics

Day 3

The Cost of Capital

Risk Modelling in Practice

Day 4

Decision Analysis: Expected Value Concept

Day 5

Decision Trees, EMV, Risk Responses and ROI

Module II: Advanced Oil & Gas Project Economics, Risk & Decision Analysis

DAY 6

Development Economics

DAY 7

Uncertainty in Investments

DAY 8

Risks and Uncertainties

DAY 9

Setting-up Spreadsheet Calculations Using Excel

DAY 10

Practical Use of the @Risk add-on: Oil Field Development Model

 

 

Accreditation

PMI Registered Education ProviderThe Registered Education Provider (R.E.P. ID:4349) status with the Project Management Institute (PMI®) enables PetroKnowledge to issue applicable Professional Development Hours/Units (PDHs/PDUs) to participants on this training course, to help you achieve or maintain PMI® professional credentials.

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

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© 2019. Material published by Petroknowledge shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


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