In a world of uncertainty, it is critical to apply the right techniques to evaluate major projects
Address Key Issues
Evaluate the economic viability of a project and choose investment opportunities
Gain A Full Understanding
Model risk and uncertainty and determine the expected value of a project
Key Takeaways
Understand financial information related to petroleum projects and compare projects
Understand the impact that governments and project partners have on project economics
This course focuses on providing participants with an understanding of key project economic evaluation techniques used in the petroleum industry. Participants will practice evaluation techniques including net present value, rate of return, payout period, and understand the key risks and factors that influence profitability for projects.
IN JUST 3 DAYS YOU WILL:
- Understand cash flow techniques applicable in economic evaluations
- Learn how to evaluate the economic viability of a project and choose investment opportunities
- Be able to use models to weigh risk and uncertainty
- Become comfortable with techniques used to determine an expected value
MEET YOUR TRAINER
Our expert has a unique background in the oil and gas industry that includes academic, consulting, and practical experience. He has several years of experience teaching petroleum economics across American Universities. His experience includes 15 years as the Chief Energy Economist for the American Government advising the world’s 8th largest oil and gas producing region on the business of oil and gas. While in government, he was responsible for educating and training staff on oil and gas basics as well as heading the analytical teams. He has a background in designing oil and gas taxation systems, regulations, pipelines petrochemicals, and advising on multi-billion dollar investments. He has spoken to international audiences as an expert on oil and gas economics and other topics related to oil and gas.
Organisations that will benefit:
- Oil and Gas Organisations
- Organisations who interact with the Oil and Gas industry
Who will attend:
- Engineers
- Investment Professionals
- Corporate Finance Professionals
- Enterprise Risk Management Professionals
- Corporate Planning Professionals
- Economists and Analysts
- Facility and Operations Managers
- Project Managers
- Non-finance professionals working within the petroleum industry
COURSE AGENDA
Day 1: Introduction and Overview ⇓
- Introduction of petroleum markets
- Economics 101
- The very basics of markets and economics concepts are identified as groundwork for use throughout the course
- Supply and Demand and what they mean
- Market forces and how prices are determined
- Short term vs. long term considerations
- Opportunity cost
- Time value of money
- Discounting
Day 2: Project Evaluations ⇓
- Common types of oil and gas upstream projects
- Project lifecycle
- Defining revenue and operating expenses
- Forecasting production, prices, and expenses
- Cash versus write-off decision: depreciation, depletion, and amortization
- Common Economic indicators and evaluation techniques: NPV, ROR, VAR, Payback, Hurdle Rates, Cost of Capital
- Defining risk
- Multiple project investment analysis including project ranking
- Case Studies: Shale Gas project in Argentina
- Case Study: LNG investment in the US Gulf coast
Day 3: Fiscal Systems ⇓
- The main types and elements of fiscal regimes
- Cash flows for concessionary systems and production sharing contracts
- Bonuses & Rentals
- Cost-Based Systems
- Royalties
- Profit-Sharing
- Production Sharing
- Service Fee Systems
- Describe Fiscal System Design Criteria, evaluation and trends
- Case Study: Offshore project in Brazil
- Case Study: Heavy Oil investment in Alberta
- Other participants
- Joint Ventures
- State Participation
- Financing
For further information please call: +44 (0)1372 308547
or click on the brochure tab below
