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The 10-Day Advanced Project Economics & Risk Management for Oil & Gas Professionals

An Intensive 10-Day Training Course

The 10-Day Advanced Project Economics & Risk Management for Oil & Gas Professionals

Improve Decision Making and Increase Investment Effectiveness

PMI® Registered training
PMI® Registered training

Scheduled Dates

02 - 13 Sep 2024 Dubai - UAE $11,900
04 - 15 Nov 2024 London - UK $11,900
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Why Choose this Training Course?



The Structure

This PetroKnowledge training course is split into two modules:

MODULE I - Project Analysis : Tools & Techniques for Managing Risk & Uncertainty

MODULE II - Advanced Oil & Gas 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 1

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 2

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

Day 3

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

Day 4

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 5

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 II: Advanced Oil & Gas Project Economics, Risk & Decision Analysis


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


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)


Risks and Uncertainties

  • Risk & Uncertainty
  • Risk Eversion and Risk Premium
  • Exploration Project Threats and Opportunities
  • Economic Decision Criteria
  • Decision Tree Analysis
  • Probability Distribution
  • Case Study: Monte Carlo Simulation


Setting-up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • CashFlow Analysis
    • Sensitivity Analysis Calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Class Exercises: Setting-up an Oil Field Project

DAY 10

Practical Use of the @Risk add-on: Oil Field Development Model

  • Developing an Integrated Economic Model of an Oil Field Development
  • Developing and using an @Risk Model Analysis
  • Project Sensitivity Analysis utilizing data from @Risk Model
  • Training Seminar Final Review and Close




  • 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


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.

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 50 981 7386 | +971 2 557 7389 or send an email to

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

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