Upstream Petroleum Economics, Risk and Fiscal Analysis

1. Understand and construct petroleum industry cash flow projections 2. Calculate, understand and know how to apply economic indicators 3. Learn and apply risk analysis to exploration and production investments 4. Evaluate and model fiscal/PSC terms of countries worldwide

CASH FLOW ANALYSIS 1. Net Cash Flow 2. Economic Life and Reserves 3. Distinction between Cash Flow and Profit 4. Cash Flow and Tax 5. Cash Flow and PSCs 6. Sunk Costs 7. Incorporating Inflation into Cash Flow Projections 8. Real and Nominal Cash Flows 9. Depreciation Methods ECONOMIC INDICATORS & EXAMPLE ECONOMIC EVALUATIONS 1. Introduction 2. Net Present Value (NPV) 3. Real and Nominal NPVs 4. Internal Rate of Return (IRR) 5. Problems with IRR o Several IRRs – wh 6. Payback 7. Capital Productivity Index (CPI) 8. Comparison of Economic Indicators 9. Incremental Economics RISK ANALYSIS & ECONOMICS OF EXAMPLE FISCAL REGIMES 1. Introduction 2. Sensitivity Analysis 3. Probability Analysis 4. Monte Carlo Simulation 5. Exploration Decisions 6. Economics of Example Fiscal Regimes