Course Description
This comprehensive 5-day course equips participants with advanced skills in petroleum project economics and financial modeling. Attendees will learn to construct robust financial models, evaluate project viability, and assess risks in the oil and gas industry. The course combines theoretical concepts with practical applications, enabling participants to make informed investment decisions.
Learning Objectives
- Develop proficiency in building comprehensive financial models for oil and gas projects
- Master techniques for cash flow analysis, project ranking, and economic indicator calculations
- Understand risk assessment methodologies and sensitivity analysis in petroleum economics
- Learn to evaluate and compare different fiscal regimes in the oil and gas sector
- Gain skills in decision-making under uncertainty using probabilistic analysis
Course Modules
Day 1: Fundamentals of Petroleum Economics
- Introduction to petroleum economics and financial modeling
- Key economic indicators in oil and gas projects
- Time value of money and discounted cash flow analysis
- Overview of fiscal regimes in the petroleum industry
Day 2: Building Financial Models
- Structuring financial models for oil and gas projects
- Revenue forecasting and production profiles
- Cost estimation: CAPEX, OPEX, and abandonment costs
- Depreciation methods and tax calculations
Day 3: Economic Analysis and Project Evaluation
- Net Present Value (NPV) and Internal Rate of Return (IRR) calculations
- Payback period and profitability index
- Project ranking and screening techniques
- Incremental analysis and optimization
Day 4: Risk Analysis and Decision Making
- Identifying and quantifying project risks
- Sensitivity analysis and tornado diagrams
- Monte Carlo simulation for probabilistic analysis
- Decision tree analysis for sequential investment decisions
Day 5: Advanced Topics and Case Studies
- Evaluation of different fiscal regimes
- Portfolio analysis and optimization
- Real options analysis in petroleum projects
- Integrated case study: Full-cycle economic evaluation
Practical Wins for Participants
- Ability to construct comprehensive financial models for oil and gas projects
- Improved decision-making skills for investment analysis in the petroleum sector
- Enhanced risk assessment and management capabilities for energy projects
- Proficiency in using advanced analytical tools for project evaluation and optimization
Credits: 5 credit per day
Course Mode: full-time
Provider: Blackbird Training Centre
