Petroleum Project Economics & Risk Analysis Training

Program Date

12 Aug 16 Aug 2024

Program Location

London, UK

Program Venue

Best Western Corona Hotel

Registration & Payment Deadline

30 Jun 2024

Program Overview

Economics is the primary link between decision making and profitable operations and it is one of the four pillars of the oil and gas sector. The economic structure of the petroleum industry differs strongly from other industries due to great risks and uncertainty associated with oil and gas projects, coupled with dangerously volatile price levels.  Being an extractive industry that is exposed to a range of formidable uncertainties, the upstream petroleum industry faces particular complexity in assessing the economics of its business opportunities.

Petroleum Project Economics & Risk Analysis Training in London, UK has been designed specifically to provide practical guidance to Oil & Gas industry professionals and help them employ effective techniques for economic analysis. Upon the successful completion of the program its delegates will be able to apply appropriate tools when predicting profit, production, costs, and cash flow and thereby evaluate existing alternatives for optimum outcomes.

Target Audience

Petroleum Project Economics and Risk Analysis Workshop in London, UK is be suit for:

  • Professionals from ministries dealing with Oil, Gas and Petroleum Projects
  • Economists and Project Analysts
  • Financiers and Decision-Makers
  • Oil & Gas Field Engineers
  • Oil & Gas Managers, Auditors, and Planners
  • Financial Analysts and Corporate Treasury Managers
  • Investment Professionals and Accountants
  • Anyone requiring a fundamental knowledge of Petroleum Economics and oil and gas project recommendations.

Program Objectives

Upon completion of this intensive program, the attendees will be able to:

  • Comprehend a variety of terms and concepts applied in Oil and Gas Industry
  • Design and Develop economic models of various petroleum fiscal regimes
  • Perform cash flow analysis for petroleum related projects and determine economic indicators
  • Assess 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.

Program Contents

First Day

  • Familiarization with Economic terms
  • Setting up Cash Flow Calculation
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cash Flow
  • Sunk Costs
  • Project Financing

Second Day

  • 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

Third Day

  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Probability Distribution
  • Monte Carlo Simulation

Fourth Day

  • Introduction to Spreadsheet Calculation
  • Simple Cash Flow using Excel
  • NPV calculations
  • Application of economic indicators
  • Program Discussion
  • Setting up an Integrated Economic Model of a Typical Oil Field Development
  • Project Sensitivity Analysis for the selected model
  • Introduction to Russell field model

Fifth Day

Whole day exposure visit – Translating Theory into Practice – Real-life experience from Executed Petroleum Projects.

Program Methodology

The methodology applied throughout the course of the program will encourage the maximum participation of all attendees. The sessions will be led using an interactive contemporary adult learning approach. The tools deployed will include open presentation, group discussions, video examples, individual assignments and case studies. On the last day of the session, practical exposure visit will be arranged in order to observe the factual appliance of theoretical base covered.

Program Fee

Payment Options

Fee Covers

  • Visa Assistance (Complimentary)

  • Participant Assessment

  • Airport Pickup

  • Accommodation

  • Wi-Fi

  • Welcome Dinner

  • Breakfast

  • Workshop Kit

  • Program Materials

  • Program Experts

  • Practical Activities

  • Lunch

  • Refreshments

  • Interactive workshop

  • City Map & Direction

  • Risalat T-shirt

  • Field Visit

  • Program Certificate

  • Entertaining Tour

  • Program Report