Petroleum Project Economics & Financial Modelling Course

Why This Course

In the oil and gas industry, strong financial acumen is essential for evaluating projects, managing risks, and making informed investment decisions. Understanding the economic viability of petroleum projects, building robust financial models, and analyzing fiscal regimes are critical skills for professionals in this sector.

This intensive 5-day program equips participants with practical tools and advanced techniques in petroleum project economics and financial modeling. By combining theory with hands-on exercises, attendees will gain the confidence and expertise needed to assess project opportunities, optimize returns, and manage uncertainties in the oil and gas industry.

What You’ll Learn and Practice

By participating in this program, you will:

• Develop proficiency in building comprehensive financial models tailored to oil and gas projects.
• Master techniques for cash flow analysis, project ranking, and calculation of key economic indicators.
• Understand risk assessment methodologies and perform sensitivity and probabilistic analyses.
• Evaluate and compare fiscal regimes across different oil and gas projects.
• Apply decision-making tools under uncertainty to optimize investment outcomes.

The Program Flow

Day 1: Fundamentals of Petroleum Economics

• Introduction to petroleum economics and financial modeling principles.
• Key economic indicators for oil and gas project evaluation.
• Time value of money and discounted cash flow analysis.
• Overview of fiscal regimes and taxation structures in the petroleum industry.

Day 2: Building Financial Models

• Structuring end-to-end financial models for oil and gas projects.
• Revenue forecasting and production profile modeling.
• Estimating capital expenditures (CAPEX), operating costs (OPEX), and abandonment costs.
• Applying depreciation methods and tax calculations accurately.

Day 3: Economic Analysis and Project Evaluation

• Calculating Net Present Value (NPV), Internal Rate of Return (IRR), and payback periods.
• Assessing profitability index and incremental analysis techniques.
• Ranking and screening projects based on economic performance.
• Optimizing project scenarios to maximize returns.

Day 4: Risk Analysis and Decision Making

• Identifying and quantifying key project risks.
• Conducting sensitivity analysis using tornado diagrams.
• Applying Monte Carlo simulations for probabilistic modeling.
• Utilizing decision tree analysis for sequential investment decisions.

Day 5: Advanced Topics and Case Studies

• Evaluating different fiscal regimes and contractual structures.
• Portfolio analysis and optimization for multiple projects.
• Real options analysis in petroleum project evaluation.
• Integrated case study: full-cycle financial evaluation from exploration to production.

Individual Impact

• Build accurate and comprehensive financial models for petroleum projects.
• Enhance decision-making capabilities for evaluating investment opportunities.
• Develop expertise in risk assessment and probabilistic analysis.
• Gain hands-on experience with advanced analytical tools and scenario modeling.

Organizational Impact

• Improve project selection and prioritization based on robust economic analysis.
• Enhance risk management and optimize returns across the project portfolio.
• Strengthen the organization’s ability to make informed, strategic investment decisions.
• Equip teams with practical tools to evaluate, compare, and optimize oil and gas projects efficiently.

Training Methodology

The program integrates theoretical frameworks with applied exercises:

• Practical workshops on financial model building and cash flow analysis.
• Hands-on exercises in sensitivity, probabilistic, and decision tree analyses.
• Case studies of real-world petroleum projects for end-to-end evaluation.
• Guided exercises in fiscal regime assessment, portfolio optimization, and real options analysis.

Beyond the Course

Upon completion, participants will be able to:

• Construct detailed and reliable financial models for petroleum projects.
• Conduct economic analysis to assess project viability and rank investment opportunities.
• Perform advanced risk assessments and make data-driven investment decisions.
• Apply modern financial tools to optimize project performance and portfolio returns.

This course equips professionals with the analytical skills, financial expertise, and practical tools necessary to excel in the complex and high-stakes environment of the oil and gas industry.