An Intensive 5-day Training Course
Petroleum Economics, Risk and Decision Analysis
Learn How to Apply Economic and Risk Analysis to Drive Decision-Making in Petroleum
CLASSROOM DATES
INTRODUCTION
This EuroMaTech 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 an 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.
Participants attending this training course will develop the following competencies:
- 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
TRAINING OBJECTIVES
This training course aims to enable participants to achieve the following objectives:
- 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. (View more Risk Management Training Courses)
TRAINING OUTLINE
Day 1 : Cash Flow Analysis
- Familiarization with Economic terms
- Depreciation Methods
- Loss Carry Forwards
- Inflation
- Nominal & Real Cash Flow
- Sunk Costs
- Project Financing
Day 2 : Economic Indicators
- Present Value Concept
- Economic Indicators Definitions
- Payback Period
- Profit/Investment Ratio
- Discount Factor
- Net Present Value
- Internal Rate of Return
- Effect of Project Delay
- 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 IRR calculations
- Application of economic indicators
- Class discussion
Day 5 : Setting up Oil Field Development Model
- Group activities
- Setting up an Integrated Economic Model of a Typical Oil Field Development
- Project Sensitivity Analysis for the selected model
- Economic indicators used in decision policy, features, pitfalls to avoid
- Final remarks
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ACCREDITATION
EuroMaTech is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
Euromatech is a Knowledge & Human Development Authority (KHDA) approved training institute in Dubai, licensed and approved to deliver training courses in the UAE.
The KHDA is the regulatory authority in the UAE, that oversees administering, approving, supervising, and controlling the activities of various education providers in the UAE. We are proud of our commitment to ensuring quality training courses and status as a KHDA-approved training provider.
FAQ
Do you provide assistance with hotel accommodation?
Yes, we can assist you with the following:
- Corporate Discount: If available, we can extend our corporate discount for your stay at selected hotels.
- Hotel Suggestions: We can provide recommendations for nearby hotels based on your preferences and budget.
Feel free to explore online booking platforms for the most cost-effective options.
Do you offer customized training for organizations?
Yes, we provide tailored training solutions designed to meet the specific needs of your organization. Customized courses can be delivered either in-person or online, and you can select the dates and duration that best fit your schedule. For more details, please contact us at [email protected]
What types of training formats do you offer?
We provide two flexible training formats to suit your preferences:
- Classroom Training: Experience in-person learning with expert instructors. Engage in interactive discussions, hands-on activities, and benefit from face-to-face networking.
- Online Training: Join live online sessions from anywhere, offering flexibility for those with busy schedules or who prefer remote learning.
- In-House Training: We can bring our training directly to your organization, allowing for tailored sessions that address your specific needs and objectives.
Can you assist with visa arrangements?
Yes, we can help by issuing an official Letter of Invitation once you’ve confirmed your training registration, which can assist in your visa application process.
Who will be the senior consultant leading the training?
We are happy to share the profiles of our expert instructors. To learn more about their qualifications and experience, please contact us [email protected]
