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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

Current View: In-Person format Go to Online format

Scheduled Dates

Date: Location: Fee: Enrollment:
01 - 05 Nov 2021 Accra - Ghana $5,950
07 - 11 Nov 2021 Dubai - UAE $4,950
12 - 16 Dec 2021 Doha - Qatar $4,950
02 - 06 Jan 2022 Dubai - UAE $4,950
14 - 18 Mar 2022 Istanbul - Turkey $5,950
25 - 29 Jul 2022 Houston TX - USA $6,950
06 - 10 Nov 2022 Dubai - UAE $4,950
01 - 05 Jan 2023 Dubai - UAE $4,950

*Exclusive of VAT

Why Choose this Training Course?

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

This PetroKnowledge PMI® Approved 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 cash flow 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 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 cash flow 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 PetroKnowlegde 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

How will this Training Course be Presented?

The training 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.

 

Daily Agenda

Day One: Cash Flow Analysis

  • Familiarization with Economic terms
  • Setting up Cash Flow Calculation
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cash Flow
  • 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 Cash Flow using Excel
  • NPV calculations
  • Application of economic indicators
  • Class discussion

Day Five: Setting up Oil Field Development Model

  • Group activities
  • 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