overview

Key Learning Objectives

• Identify the role of project economics in the petroleum industry
• Learn the language of project commercial decision making
• Discover cash flow and profit analysis techniques
• Perform discounted cash-flow economic evaluations
• Examine profitability and capital efficiency indicators including:
  – Net Present Value (NPV) and Internal Rate of Return (IRR) analysis
  – Finding, lifting and development costs
  – Profitability Index, payback time and maximum exposure
• Explain screening and ranking techniques
• Discover probability, expected monetary value and value of information
• Appreciate uncertainty through risk and sensitivity analysis
• Explore the differences between additional vs. accelerated reserves
• Understand the different petroleum fiscal environments

About the Course

Financial considerations for projects and investments are an ever increasing concern. This is especially true as petroleum projects become more complex and costly.

Successful companies work using a decision making framework which includes a strict project progression (or gating) procedure to allow sound financial decisions to be made based upon a rigorous analysis of risk and uncertainty.

It is therefore critical that all key members of the team understand the financial risks involved in business decision making. This training is an excellent primer for professionals outside the financial field as well as a refresher course across a wide range of financial topics for the finance or accounting professional.

Development of projects using multidisciplinary teams is a necessity. These professionals will learn terms and concepts that are vital in developing the understanding that is required.

The career path to increased responsibilities and corporate advancement must include a clear understanding of business financial considerations and risk analysis.

Laptop based case studies will be included to stimulate discussions and illustrate concepts of the course. Laptops are required

Who Will Benefit

• Any professional involved in the planning, execution or auditing of upstream oil and gas projects
• Project decision making contributors, including: petroleum and chemical engineers, geologists, geophysicists, legal and government
• Finance/accounting staff and commercial personnel desiring a refresher or an opportunity to apply economic and finance tools in project decisions
• Petroleum engineers and geologists who wish to understand the differences between conventional and CSG projects
• Potential investors in CSG projects
• CSG managers who wish to understand the reserve process, reserve bookings and risk in CSG
• Anyone wishing to establish a basic understanding of CSG and how to optimise reserve bookings