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
Scheduled Dates
| 04 - 15 Sep 2023 | Dubai - UAE | $11,900 |
| 06 - 17 Nov 2023 | London - UK | $11,900 |
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
DAY 6
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 7
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 8
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
DAY 9
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
Certificate
- 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
Accreditation
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.
