Risk Analysis Prospect Evaluation and Exploration Economics

An Intensive 5-day Training Course

Risk Analysis Prospect Evaluation
and Exploration Economics

Risk Analysis Prospect Evaluation and Exploration Economics

Scheduled Dates


29 Jul - 02 Aug 2024 London - UK $5,950 RESERVE A SEAT
11 - 15 Nov 2024 London - UK $5,950 RESERVE A SEAT
04 - 08 Aug 2025 London - UK $5,950 RESERVE A SEAT
17 - 21 Nov 2025 London - UK $5,950 RESERVE A SEAT


11 - 15 Nov 2024 Online $3,950 RESERVE A SEAT
17 - 21 Nov 2025 Online $3,950 RESERVE A SEAT

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Why Choose this Training Course?

The objective of the Risk Analysis Prospect Evaluation and Exploration Economics training course is to provide the participants with an understanding of the risk issues affecting the oil and gas industry and to enable them to appraise key energy challenges. These include but are not limited to: risks from volatile commodity prices, safety and environmental pressures and regulations, additional risks of noncompliance, and of major cost overruns for large Exploration and Production projects.

Exploration and Production companies must often evaluate the potential of their investment using proper present value analyses of expected future cash flows. This PetroKnowledge training course provides a practical guidance in the application of economic analysis techniques currently used in the oil & gas industry. When executing a petroleum related project, one should be able to choose the best alternative, from an economic point of view, by properly evaluating all investment opportunities. By understanding and determining the concepts of economic indicators, risk and uncertainty analysis, by conduction sensitivity analyses, as well as grasping different economic structures such as tax regimes and production sharing contracts, they will be able to enhance the quality and value of the economic analysis.

Techniques for predicting profit, production, costs, and cash flow will enable the participant to evaluate decision alternatives for optimum results. 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.

Participants will learn how to manage the risks in oil and gas industry, in a prioritized manner, communicate risk judgments effectively and know how to design an overall risk management system to conduct specific analyses thus gaining a comprehensive exposure to financial and energy risk management tools and strategies. Furthermore, participants will be taught how classic risk management techniques must be adapted and extended to meet risk management for complex Oil and Gas energy markets.

This Risk Analysis Prospect Evaluation and Exploration Economics training course will feature:

  • Familiarization with economic analysis techniques for the oil and gas industry
  • Holistic Approach to Petroleum related project evaluation methods
  • Economic criteria for investment project evaluations
  • Financing oil and gas projects, cost of capital and discount rate
  • Screening and ranking of petroleum projects based on evaluating investment opportunities
  • Introduction to risk analysis, risk and discount rate and sensitivity analysis
  • Project management risks: Identifying project risks and uncertainties.
  • Application of risk management methods in mitigating the identified risks of the project
  • Make the right investment decision in the presence of risk
  • Operational risks, environment, Health and Safety Regulations
  • Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet

What are the Goals?

By the end of this Risk Analysis Prospect Evaluation and Exploration Economics training course, participants will be able to:

  • Critically evaluate and appraise the key challenges facing the oil and gas industry
  • Maximise corporate value and how IOC’s reduce risks
  • Interpret and create corporate management strategy
  • Understand the many facets of fiscal and processing agreements
  • Manage challenges from fracking operations and unconventional oil and gas production
  • Understand oil and gas geopolitics and risks associated with various pricing policies
  • Handle issues of crude oil Price Volatility and price uncertainty
  • Understand Market Risk Evaluation

Who is this Training Course for?

This Risk Analysis Prospect Evaluation and Exploration Economics training course is suitable to a wide range of professionals but will greatly benefit:

Both technical and non-technical personnel as well as operational staff at professional levels employed in refineries, petrochemical, and oil and gas process industries. The course is designed to be of substantial benefit to personnel within the Oil and Gas Industries such as:

  • Oil & Gas Planners & Financial Analysts
  • Personnel requiring a broad understanding of the structure, operations and economics of the oil and gas industries
  • Oil & Gas Field Engineers, Managers & Auditors
  • Technologists & Mechanical engineers
  • Operations, Maintenance or project engineers

How will this Training Course be Presented?

The training approach is based on principles of economic evaluation of petroleum related projects including practical exercises, case studies, question and answer sessions and group discussions. A step by step development approach of economic models & indicators and evaluating and quantifying risks and uncertainties for making the right investment decision for the project will be followed. To facilitate that, Microsoft Excel based economics modules will be presented and all discussions will be provided using high quality power point slides.

Daily Agenda

Day One: Cash Flow Analysis
  • Introduction to the oil and Gas Industry
  • History of Energy usage
  • Basic Principles of Oil and Gas Economics
  • Familiarization with Economic terms
  • Setting up Cash Flow Calculation
  • Depreciation Methods & Loss Carry Forwards
  • Inflation
  • Nominal & Real Cash Flow
  • Abandonment & Sunk Costs
  • Project Financing
Day Two: Economic Indicators
  • Economic Indicators Definitions
  • Present Value Concept
  • Discount Factor & Net Present Value
  • Internal Rate of Return
  • Payback Period
  • Profit/Investment Ratio
  • Incremental Projects
  • Effect of Project Delay
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
Day Five: Setting up Oil Field Development Model
  • Setting up an Integrated Economic Model of a Typical Oil Field Development
  • Case Study – Chevron Texaco Frade Project
  • Project Sensitivity Analysis for the selected model
  • Final remarks


  • On successful completion of this Training Course / Online Training Course, a PetroKnowledge Certificate / E-Certificate will be awarded to the delegates.

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Frequently Asked Questions

  • 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 50 981 7386 | +971 2 557 7389 or send an email to [email protected]

  • 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.

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.

For corporate fees and group registration, please send your query to [email protected].

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