An Intensive 10-day Training Course
The 10-Day Advanced Project Economics
& Risk Management
Improve Decision-making and Increase Investment Effectiveness
The 10-Day Advanced Project Economics & Risk Management
Scheduled Dates
Classroom
| 10 - 21 Nov 2025 | London - UK | $11,900 | RESERVE A SEAT |
| 07 - 18 Sep 2026 | Dubai - UAE | $11,900 | RESERVE A SEAT |
| 09 - 20 Nov 2026 | London - UK | $11,900 | RESERVE A SEAT |
Would an alternative date be more suitable?
We offer a variety of tailored training options, customized to meet your organisation's needs. Delivered anytime, anywhere, we make it easy to bring expert training directly to your team.
MODULES
This PetroKnowledge training course is split into two modules:
MODULE I - Project Analysis : Tools & Techniques for Managing Risk & Uncertainty
MODULE II - Advanced 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 One: Fundamentals of Decision Analysis
- 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 Two: 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
- Analysing Project Specifics
Day Three: 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
- Risk Modelling in practice
Day Four: 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 Five: 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 2: Advanced Project Economics, Risk & Decision Analysis
Day Six: 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 Seven: 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 Eight: Risks and Uncertainties
- Risk & uncertainty
- Risk aversion and risk premium
- Exploration project threats and opportunities
- Economic decision criteria
- Decision tree analysis
- Probability distribution
- Monte Carlo simulation
Day Nine: Setting-up Spreadsheet Calculations Using Excel
- Spreadsheet Calculations
- Cashflow analysis
- Sensitivity analysis calculations
- Tornado diagrams
- Introduction to Monte Carlo simulations using @Risk
Day Ten: Practical Use of the @Risk Add-On
- Developing an integrated economic model
- Developing and using an @Risk Model Analysis
- Project sensitivity analysis utilizing data from @Risk Model
- Training course final review and close
Certificate
- On successful completion of this Training Course / Online Training Course, a PetroKnowledge Certificate / E-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
