An Intensive 5-day Training Course
Petroleum Project Economics & Risk Analysis
Techniques for Opportunity Evaluation and Assessment of Risk and Uncertainty
Course Introduction
Exploration and Production companies often must evaluate their potential E&P investment using proper present value analysis of expected future cash-flows. 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.
This Petroleum Project Economics & Risk Analysis training course provides practical guidance in the application of the techniques of the economic analysis currently used in the Oil & Gas industry. When executing a petroleum related project, one should be able to choose the best alternative from economic point of view as well as to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cash-flow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic indicators, risk and uncertainty, different economic structures such as tax regimes and production sharing contracts, enhances the quality and the value of economic analysis.
This Oxford Management Centre training course will highlight:
- Familiarization with the application techniques of the economics analysis in the Oil & Gas industry
- Petroleum related project evaluation methods
- Screening of the petroleum projects based on evaluating the investment opportunities
- Identifying the risks and uncertainties of the project
- Application of risk management methods in mitigating the identified risks of the project
Objectives
The primary objectives of this Petroleum Project Economics & Risk Analysis training course are to:
- Understand various economic terms used in the Oil & Gas industry
- Understand how to develop economic models of various petroleum fiscal regimes
- Carry out cash-flow analysis, different economic analyses for petroleum related project and determine economic indicators
- Evaluate and quantify risks and uncertainties
- Make the right investment decision in the presence of risk
- Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet
- Contribute to the petroleum project investment within a solid economic system and do a detailed economic evaluation
- Contribute to the decision-making process for any petroleum related project
Training Methodology
The training approach is based on principles of economic evaluation of petroleum related project with focusing on step by step developing economic models, determining economic indicators, evaluating and quantifying risks and uncertainties and making the right investment decision for the project. To facilitate that, the Microsoft Excel based economics modules will be built and all discussions will be provided using high quality power point slides.
Organisational Impact
By sending delegates on this training course, your organization will benefit by:
- Participants learn about the application of economic valuation and risk assessment processes and techniques within the global Oil & Gas industry
- Help the participants to identify and analyze the risk involved in a petroleum related project
- Help the participants to apply the decision-making procedures to justify the petroleum projects in term of profitability
- Help the participants to recognize the uses of options in the ranking criteria to select and execute the high profitable project
- Putting values to the Oil & Gas companies’ active project through interpretation of economic results of applied case studies
- Help participants to recognize and identify the influencing parameters for oil and gas field developments
Personal Impact
By attending this training course, you will:
- Learn to construct a project cash-flow model
- Gain the techniques in project ranking and screening
- Gain the operational decision-making techniques under risk
- Capable of identifying the uncertainties in petroleum related project and how to manage them
- Enhance the participant’s awareness about influential parameters in an oil and gas field development plan
Who Should Attend?
This Petroleum Project Economics & Risk Analysis training course is designed to provide technical and practical approaches to executing a petroleum related project in upstream sector.
This training course is suitable to a wide range of professionals but will greatly benefit:
- Oil & Gas Field Engineers
- Oil & Gas Managers
- Oil & Gas Auditors
- Oil & Gas Planners
- Financial Analysts
- Project Management Professionals
Course Outline
Day 1
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 2
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 3
Risks and Uncertainties
- Risk & Uncertainty
- Expected Value Concept
- Decision Tree Analysis
- Farm-out Decision
- Probability Analysis
- Sensitivity Analysis
- Probability Distribution
- Monte Carlo Simulation
Day 4
Setting up Spreadsheet Calculation
- Introduction to Spreadsheet Calculation
- Simple Cash-flow using Excel
- NPV Calculations
- Application of Economic Indicators
- Class Discussion
Day 5
Setting up Oil Field Development Model
- 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
Oxford Management Centre Certificate will be provided to delegates who successfully completed the training course.
Accreditation
In association with
This training course is also part of below 10-day title:
