The 10-Day Financial Modelling &  Petroleum Project Economics

An Intensive 10 - Day Training Course

The 10-Day Financial Modelling &
Petroleum Project Economics

Techniques for Managing Risk & Performance in Oil and Gas

Scheduled Dates

01 - 12 Aug 2022 London - UK $11,900
30 Oct - 10 Nov 2022 Dubai - UAE $9,900
09 - 20 Jan 2023 Dubai - UAE $11,900
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Why Choose this Training Course?

In the globally competitive world of the 21st century, business decision-makers face unprecedented levels of change, risk and uncertainty and nowhere is this more true than in the oil and gas sector. To survive and flourish in this dynamic environment petroleum professionals need the right tools with which to analyse the economic and other challenges faced by their organisations and to anticipate and manage the many opportunities and threats that may emerge. Traditional forms of economic and financial analysis no longer meet these needs and the most progressive firms are using the power of financial models to help them analyse the challenges and take a more powerful approach to managing risk and uncertainty in their planning and forecasting.

This PetroKnowledge training course will highlight:

  • The challenge of risk and uncertainty in modern business
  • Principles of business planning and performance management
  • How financial models can be used to improve business decision-making
  • Practical skills in designing financial models using Excel
  • Advanced approach to analysing oil and gas sector economic indicators

The Structure

This PetroKnowledge training course is split into two modules:

MODULE I - Financial Analysis, Modelling & Forecasting

MODULE II - Petroleum Project Economics & Risk 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.

What are the Goals?

This 10-Day Financial Modelling & Petroleum Project Economics training course has been designed to provide petroleum sector delegates with real practical skills to design and build financial models that will have highly relevant applications in modern oil and gas organisations. By applying advanced techniques for economic and financial analysis, delegates will develop improved skills in forecasting and business decision-making.

At the end of this training course, you will learn to:

  • Plan the design and functionality of economic and financial models in Excel
  • Use powerful functions built in to Excel for statistical and financial analysis
  • Apply financial analysis techniques to improve investment decision-making
  • Design and build financial models for forecasting sales, costs and profit
  • Implement up to date techniques for managing risk and uncertainty
  • Use financial models to assist in business decision-making

Who is this Training Course for?

This 10-Day Financial Modelling & Petroleum Project Economics training course is designed to provide useful insights and practical skills to professionals from a wide range of disciplines and industry sectors, but particularly those involved in planning, forecasting and investment decision-making in an age of risk and uncertainty.

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

  • Finance Professionals
  • Budgeting and Planning Managers
  • Commercial Managers
  • Divisional Managers
  • Purchasing and Supply Chain Managers
  • Project Managers

How will this Training Course be Presented?

This is a highly participative workshop style training course focused on developing practical skills that delegates can apply in real life business situations on return to their own organisation. Each module includes a thorough review of the relevant theory before focusing on life-like business case studies with which delegates can practice the design and construction of financial models, analysis tools and forecast applications in Excel, using laptops provided for the training course.

Organisational Impact

The organisation will benefit from the practical implementation of up to date techniques in financial analysis, forecasting and financial modelling that can be applied to improve the quality and relevance of business decision-making in the context of modern levels of risk and uncertainty – specifically:

  • An integrated approach to managing business risk and uncertainty
  • The use of financial analysis tools improve business information and insights
  • Application of economic and financial models to petroleum project decision-making
  • Improved forecasting tools and performance management systems
  • Better quality information as the basis for capital investment decisions

Personal Impact

Delegates will benefit from this hands-on workshop that has been designed to provide them with the essential theory of financial analysis, forecasting and financial decision-making whilst focusing heavily on building the practical skills to develop their own financial models in Excel.

The 10-Day Financial Modelling & Petroleum Project Economics training course will greatly enhance their contribution to organisational performance and improve their career prospects by:

  • Developing an awareness of the nature and management of risk and uncertainty
  • Greater involvement in management planning and decision-making
  • Improved knowledge of Excel and its most powerful financial functions
  • Using powerful Excel economic and financial modelling skills for forecasting and decision-making
  • Applying up to date methods to planning and forecasting
  • Understanding and applying investment decision-making techniques

Daily Agenda

MODULE I - Financial Analysis, Modelling & Forecasting

Day One: The Competitive Challenge in the 21st Century 

  • Identifying and Managing Stakeholder Needs
  • Business Models and How They are Disrupted
  • An Integrated Approach to Risk Management
  • The Essentials of Business Performance Management

Fundamentals of Financial Modelling

  • Financial Statements Basics
  • Fundamentals of Financial Modelling

Day Two: Mastering Financial Analysis 

  • Building a Financial Ratio Database in Excel
  • Practical Modelling: The Cost-Volume-Profit Relationship
  • Measuring and Improving Return On Investment
  • Measuring and Improving Asset Management Efficiency
  • Measuring and Managing Capital Structure and Risk
  • Practical Modelling: The Effect of Gearing on Shareholders’ Earnings

Day Three: Improving Financial Forecasting 

  • Practical Modelling: Using Excel Statistical Analysis Tools
  • Avoiding Common Forecasting Problems
  • Using Moving Averages to Analyse Time Series Data
  • Using Linear Regression for Sales Trend Analysis
  • Using Excel Solver to Minimise Forecasting Error
  • Using Regression and Correlation to Forecast Costs
  • Practical Modelling: Cash Flow Forecasting

Day Four: Financial Models to Improve Investment Decision-making 

  • Principles of Capital Investment Decision-making
  • Sources and Cost of Business Finance
  • Practical Modelling: Using Excel Discounted Cash Flow Tools
  • Practical Modelling: Capital Investment Analysis
  • Essentials of Business Valuation
  • Practical Modelling: Business Valuation Based on Shareholder Value Added

Day Five: Managing Risk and Uncertainty 

  • Identifying and Analysing Business Risk
  • Probability Based Approach to Decision-making
  • Monte Carlo Simulation
  • Sensitivity Analysis and “what-if” Forecasting
  • Identifying the Key Drivers of Financial Performance
  • Practical Modelling: Key Driver “what-if” Forecast

 

MODULE II - Petroleum Project Economics & Risk Analysis

Day Six: 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 Seven: 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 Eight: Risks and Uncertainties

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

Day Nine: Setting-up Spreadsheet Calculation

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

Day Ten: 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

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates

In Association With

GLOMACS Training

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

Visit Website ›

Oxford Management Centre

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

Visit Website ›

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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