Project Economics, Risk and Decision Analysis for Oil & Gas

This 5 full-day training course looks at the setup of economic analysis cases, including the estimation of recoverable reserves, production profiles, commodity prices, and project costs – CAPEX, OPEX, taxes, royalties, transportation, depreciation, before-tax (BTAX) cash-flow, after-tax (ATAX) cash-flow and international fiscal regimes (production sharing agreement and concessionary system). The course begins from the basic required parameters of inflation, interest and time value of money. These concepts are then transformed into profitability indicators. Last but not the least, the profitability indicators are then used to make investment decisions.

1. Drivers Behind the Business 2. Introduction to Economic Evaluation 3. Inflation & Risk 4. Simple & Compound Interest 5. The Time Value of Money 6. Debt Cash-Flow Calculation 7. Before-Tax Cash-Flow 8. Forecasting Product Streams 9. Forecasting Capital Expenditure (CAPEX) 10. Forecasting Operating Expenditure (OPEX) 11. Gas Processing Flow Chart 12. Cost Estimation 13. Depreciation, Depletion & Amortization (DD&A) 14. After-Tax (ATAX) Cash-Flow 15. Weighted Average Cost of Capital (WACC) 16. Profitability Indicators 17. Netback Value & Indexed Pricing 18. Cash-Flow & Discounting Assumptions 19. Investment Selection Decision-Making 20. Commerciality Assessment 21. Introduction to Decision Analysis 22. Basic Probability Concepts 23. Expected Value (EV) 24. Decision Trees 25. Expected Opportunity Loss (EOL) 26. Simulation in Decision Analysis 27. Investment Portfolio Optimization 28. Sensitivity Analysis 29. Scenario Analysis 30. International Petroleum Agreements 31. Abandonment CAPEX 32. Management Presentation 33. Typical Presentation Slides