Petroleum Project Economics & Risk Analysis

An Intensive 5 - Day Training Course

Petroleum Project Economics & Risk Analysis

Techniques for Opportunity Evaluation and Assessment of Risk and Uncertainty

PMI® Registered training
PMI® Registered training

Scheduled Dates

25 - 29 Jul 2022 Houston TX - USA $6,950
08 - 12 Aug 2022 London - UK $5,950
06 - 10 Nov 2022 Dubai - UAE $4,950
16 - 20 Jan 2023 Dubai - UAE $5,950
01 - 05 May 2023 Dubai - UAE $5,950
10 - 14 Jul 2023 Houston TX - USA $6,950
01 - 05 Jan 2024 Dubai - UAE $5,950
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We provide a wider range of training options. Tailored and customized, we can deliver your organization’s training needs anytime, anywhere.

Why Choose this Training Course?

Exploration and Production companies often must evaluate their potential E&P investment using proper present value analysis of expected future cashflows. From the projected cashflows and required investments, the annual rate of return and other project economic indicators can be extracted to evaluate the significance of company investment.

This Petroleum Project Economics & Risk Analysis training course provides practical guidance in the application of the techniques of the economic analysis currently used in the Oil & Gas industry. When executing a petroleum related project, one should be able to choose the best alternative from economic point of view as well as to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cashflow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic indicators, risk and uncertainty, different economic structures such as tax regimes and production sharing contracts, enhances the quality and the value of economic analysis.

This PetroKnowledge training course will highlight:

  • Familiarization with the application techniques of the economics analysis in the Oil & Gas industry
  • Petroleum related project evaluation methods
  • Screening of the petroleum projects based on evaluating the investment opportunities
  • Identifying the risks and uncertainties of the project
  • Application of risk management methods in mitigating the identified risks of the project

What are the Goals?

The primary objectives of this training course are to:

  • Understand various economic terms used in the Oil & Gas industry
  • Understand how to develop economic models of various petroleum fiscal regimes
  • Carry out cashflow analysis, different economic analyses for petroleum related project and determine economic indicators
  • Evaluate and quantify risks and uncertainties
  • Make the right investment decision in the presence of risk
  • Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet
  • Contribute to the petroleum project investment within a solid economic system and do a detailed economic evaluation
  • Contribute to the decision-making process for any petroleum related project

Who is this Training Course for?

This Petroleum Project Economics & Risk Analysis training course is designed to provide technical and practical approaches to executing a petroleum related project in upstream sector.

This training course is suitable to a wide range of professionals but will greatly benefit:

  • Oil & Gas Field Engineers
  • Oil & Gas Managers
  • Oil & Gas Auditors
  • Oil & Gas Planners
  • Financial Analysts
  • Project Management Professionals

How will this Training Course be Presented?

The training course approach is based on principles of economic evaluation of petroleum related project with focusing on step by step developing economic models, determining economic indicators, evaluating and quantifying risks and uncertainties and making the right investment decision for the project. To facilitate that, the Microsoft Excel based economics modules will be built and all discussions will be provided using high quality power point slides.

Organisational Impact

By sending delegates on this PetroKnowledge Petroleum Project Economics and Risk Analysis training course, your organization will benefit by:

  • Participants learn about the application of economic valuation and risk assessment processes and techniques within the global Oil & Gas industry
  • Help the participants to identify and analyse the risk involved in a petroleum related project
  • Help the participants to apply the decision-making procedures to justify the petroleum projects in term of profitability
  • Help the participants to recognize the uses of options in the ranking criteria to select and execute the high profitable project
  • Putting values to the Oil & Gas companies’ active project through interpretation of economic results of applied case studies
  • Help participants to recognize and identify the influencing parameters for oil and gas field developments

Personal Impact

By attending this training course you will:

  • Learn to construct a project cashflow model
  • Gain the techniques in project ranking and screening
  • Gain the operational decision-making techniques under risk
  • Capable of identifying the uncertainties in petroleum related project and how to manage them
  • Enhance the participant’s awareness about influential parameters in an oil and gas field development plan

Daily Agenda

Day One: Cashflow Analysis

  • Familiarization with Economic terms
  • Setting up Cashflow Calculation
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cashflow
  • Sunk Costs
  • Project Financing

Day Two: Economic Indicators

  • Economic Indicators Definitions
  • Present Value Concept
  • Discount Factor
  • Net Present Value
  • Internal Rate of Return
  • Effect of Project Delay
  • Payback Period
  • Profit / Investment Ratio
  • Incremental Projects

Day Three: Risks and Uncertainties

  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Probability Distribution
  • Monte Carlo Simulation

Day Four: Setting up Spreadsheet Calculation

  • Introduction to Spreadsheet Calculation
  • Simple Cashflow using Excel
  • NPV Calculations
  • Application of Economic Indicators
  • Class Discussion

Day Five: Setting up Oil Field Development Model

  • Setting up an Integrated Economic Model of a Typical Oil Field Development
  • Project Sensitivity Analysis for the Selected Model
  • Introduction to Russell Field Model
  • Final Remarks

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates
  • On successful completion of this PetroKnowledge training course, Certificate with eligible Professional Development Units (PDUs) / Contact Hours from Project Management Institute (PMI®), will be awarded to the delegates

Accreditation

PMI® Registered Training Course

The 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 our Project Management oriented training courses, to help them achieve or maintain PMI® professional credentials.

In Association With

GLOMACS Training

Our collaboration with GLOMACS aims to provide the best training services and benefits for our valued clients

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Oxford Management Centre

Our collaboration with Oxford Management Centre aims to provide the best training services and benefits for our valued clients.

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Frequently Asked Questions

How can I register for a training course?

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 56 222 7795 | +971 2 557 7389 or send an email to reg@petroknowledge.com

When and how do I arrange payments?

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to info@petroknowledge.com.

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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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