Oil, Gas & Petroleum · 5 Days · Public · Al-Khobraa certified · From USD 3,900
Overview
Given the volatility in oil prices today, the economic evaluation of an upstream oil and gas investment is essential. Business decisions involving asset acquisitions, lease-buy assessments, exploration drilling options, oil and gas field development, equipment purchases, and fiscal negotiations all require detailed economic analysis.
Learning Objectives
GAIN a thorough understanding of oil & gas economic evaluations
IDENTIFY the main components and CONSTRUCT cash flow projections for your upstream projects
DETERMINE key elements and determinants involved in making oil and gas investment decisions
UNDERSTAND and APPLY economic indicators to assess oil & gas industry projects
QUANTIFY and MANAGE uncertainty and risk faced in upstream business decisions
APPLY Monte Carlo Simulation and other statistical methods in risk analysis to exploration and production investments effectively
UNDERSTAND, EVALUATE and MODEL both fiscal and production sharing contract terms worldwide
Who Should Attend
This course is designed for reservoir engineers, production engineers, petroleum engineers, and other professionals seeking to strengthen their capability in this area.
Reservoir Engineers
Production Engineers
Petroleum Engineers
Planning and Development Analysts/Executives
Commercial Analysts/Executive/Managers
Business Planners/Analysts/Executives/Managers
Production Sharing Executives/Managers
Project Executives/Manager
General Managers
Finance and Account Executive/Managers
Course Outline
Day 1 — 1. INTRODUCTION
Aims and scope
Contents
Cash flow analysis
Economic indicators
Day 2 — How net cash flow projections are critical in…
2. ECONOMIC INDICATORS
Introduction
The need to measure net cash flow projections with single indicators. The indicators used in the oil and gas industry.
Net Present Value (NPV)
Day 3 — Problems with IRR
Multiple IRRs – when, how often and how they arise. How the NPV and IRR measures can give conflicting results and how to resolve this. The effect of project delays and the use of IRR.
Payback
Calculation and use of payback and discounted payback indicators. The use of discounted payback in petroleum fiscal regimes. Problems with payback.How compound payback is used in some fiscal regimes
Capital Productivity Index (CPI).
Day 4 — Lease-buy decision example
4. RISK ANALYSIS
Sensitivity Analysis
Analyzing the sensitivity of investment decisions to variations in input parameters. Interpreting sensitivity diagrams. The pitfalls in using sensitivity analyses for oil industry investment decisions.
Probability Analysis
Day 5 — The mechanics of Monte Carlo simulation. Choosing…
Exploration decisions
The definition, meaning and examples economics for oil and gas exploration drilling decisions. Expected value (EV) versus probability of success lines. Using EV to compare drilling and famous decisions. The effects if fiscal terms and common problems with using EV. Choosing probabilities of success. Valuing properties using EV.
5. PRODUCTION SHARING CONTRACTS, FISCAL SYSTEMS, AND TERMS IN THE ASIA PACIFIC REGION
Analysis of example PSCs and fiscal terms in the Asia-Pacific region. Evaluating the severity of fiscal terms. How the fiscal components work. How certain fiscal terms can distort oil and gas project investment decisions. How to avoid potential investment distortion in the design or negotiation of fiscal terms. Examples for Indonesia, Malaysia, Thailand, Vietnam, and Australia.
Accreditation
Al-Khobraa certified. On completion delegates receive an Al-Khobraa certificate of achievement.
What do Al-Khobraa oil, gas and petroleum courses cover?
The portfolio spans the full value chain: upstream exploration, drilling and well control; midstream processing, pipelines and gas treatment; and downstream refining and petrochemicals — plus process safety management (PSM), HAZOP studies, corrosion control and plant operations. Trainers are practitioners from the sector.
Who should attend an oil, gas and petroleum course?
These courses suit process, production and petroleum engineers, plant and field operators and supervisors, maintenance and inspection staff, HSE and process safety professionals, and technical or commercial staff joining the sector from another industry.
How long are oil, gas and petroleum courses, and where are they held?
Most Al-Khobraa oil, gas and petroleum courses run over 5 days. The exact duration, dates and city for this course are listed in the dates section on this page. Public sessions run across Saudi Arabia — Riyadh, Jeddah, Al-Khobar, Jubail and Yanbu — as well as regional and international venues, with live virtual classrooms available on request.
What certificate will I receive?
Delegates who complete the course receive an Al-Khobraa certificate of completion, issued by a Saudi-registered training provider. Al-Khobraa also delivers internationally accredited programmes; where a course carries an external awarding body such as PMI, CIPS, ILM or IOSH, that body is named on the course's own page.
Can oil, gas and petroleum training be delivered in-house for our team?
Yes. Any Al-Khobraa oil, gas and petroleum course can be delivered in-house at your own premises anywhere in Saudi Arabia or the GCC, with the content, dates and language of delivery tailored to your team. Al-Khobraa is an approved HRDF (Hadaf) provider, so eligible Saudi employers can seek training support. Contact us for a quotation.