Petroleum Projects Economics & Risk Analysis
Join On Event :
| Event | Start | End | Instructor | Location | Registration |
|---|---|---|---|---|---|
| Petroleum Projects Economics & Risk Analysis | 02-Nov | 06-Nov | instructor |
Details :
This workshop
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,
such as a field development, you should be able to
choose the best alternative from
economic point of
view.
You should be able 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.
The Primary Objectives of the Course are to:
o Understand
various economic terms used in the oil & gas industry
o Understand how to develop
economic models of various petroleum fiscal regimes
o Carry out cash flow analysis and determine economic
indicators
o Carry out different economic analyses for petroleum
related projects
o Evaluate and
quantify risks and uncertainties
o 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
Engineers, geologists, economists, accountants, technicians who need to learn how to conduct economic evaluation
and to understand the role of petroleum economics
in investment decision
making. This workshop
is also recommended for supervisors & managers in the Planning, Exploration, Production, Projects, Financing
and Technical Departments
in Oil & Gas Companies
The Primary Objectives of the Course are to:
o Understand
various economic terms used in the oil & gas industry
o Understand how to develop
economic models of various petroleum fiscal regimes
o Carry out cash flow analysis and determine economic
indicators
o Carry out different economic analyses for petroleum
related projects
o Evaluate and
quantify risks and uncertainties
o 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
DAY
1 – Cash Flow Analysis
§ Familiarization with Economic terms.
§ Feasibility Studies
§ Setting up Cash Flow Calculation
§ Petroleum Fiscal Regimes
§ Production Sharing Contracts (PSC)
§ Depreciation
§ Depreciation Methods
§ Loss Carry Forwards
§ Inflation
§ Nominal & Real Cash Flow
§ Sunk Costs
§ Project Financing
§ 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
§ Comparing Economic Indicators
DAY 3 - Risks and Uncertainties
·
Risk & Uncertainty
·
Expected Value Concept
·
Decision Tree Analysis
·
Farm-out Decision
·
Probability Analysis
·
Sensitivity Analysis
·
Spider and Tornado Diagrams
·
Probability Distribution
·
Monte Carlo Simulation
§ Introduction to Spreadsheet Calculation
·
Simple Cash Flow Using Excel
· Setting up an Integrated Economic Model of a Typical Oil Field
development Project including Sensitivity Analysis
Daily from 09:00 to 14:30 including lunch and coffee breaks