Course Outline

Course Outline

Petroleum Projects Economics & Risk Analysis

Ref No. Dates Venue Fee (US$)  
OG 005 06 - 10 Apr 2020 Kuala Lumpur 5000 Register
OG 005 17 - 21 Aug 2020 Kuala Lumpur 5000 Register
OG 005 07 - 11 Dec 2020 Kuala Lumpur 5000 Register

Petroleum Projects Economics & Risk Analysis


When executing a petroleum related project, such as a field development, you should be able to choose the best alternative from economic point of view. You should be able to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cash flow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic indicators, risk and uncertainty, different economic indicators enhances the quality and the value of economic analysis.

PROCLAD Academy’s Petroleum Projects Economics & Risk Analysis training course provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. The training course assumes no prior knowledge of the topics covered. New concepts and tools are introduced gradually to enable participants to progress from the fundamental to the advanced concepts of economic evaluation.

The key features of the PROCLAD Academy’s Petroleum Projects Economics & Risk Analysis training course are:

  • Petroleum Economics & Cash Flow Analysis
  • Economic Models & Spreadsheet Design
  • Managing Risk, Uncertainty & Decision Analysis
  • Financial Modelling & Project Evaluation
Learning Objectives

Attendance to PROCLAD Academy’s Petroleum Projects Economics & Risk Analysis training course will enable delegates to:

  • Understand the importance of project economics used in the oil & gas industry
  • Carry out cash flow calculations and determine economic indicators
  • Understand different fiscal regimes applied in the international oil & gas operations
  • Carry out different economic analyses for petroleum related projects
  • Evaluate the economics of incremental projects
  • Evaluate the economic outcome of accelerating production
  • Evaluate the economic outcome of delaying oil & gas development projects
  • Evaluate and quantify risks and uncertainties
  • Make the right investment decision in the presence of risk including farming out.
  • Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet
Target Audience

PROCLAD Academy’s Petroleum Projects Economics & Risk Analysis training course is designed for:

  • Petroleum/Reservoir Engineers who want to determine the profitability of producing new discoveries
  • Engineers, geologists, economists, accountants, technicians who need to learn how to conduct economic evaluation and to understand the role of petroleum economics in investment decision making
  • Supervisors & managers in the Planning, Exploration, Production, Projects, Financing and Projects Departments in Oil & Gas Companies who are involved in making field development decisions.
Training Methodology

PROCLAD Academy’s Petroleum Project Economics & Risk Analysis training course will include a number of exercises aimed at enhancing capability to conduct various economic evaluations. In addition, each participant will develop various economic analyses calculations. At the end of the workshop each participant will be develop a comprehensive spreadsheet economic model that carries out a complete economic evaluation including a sensitivity analysis.

Course Outline
  • Familiarization with Economic terms
  • Feasibility Studies
  • Setting up Cash Flow Calculation
  • Petroleum Fiscal Regimes
  • Depreciation of Capital Costs
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cash Flow
  • Sunk Costs
  • Project Financing
  • Economic Indicators Definitions
  • Time Value of Capital
  • Present/Future Value Concept
  • Discounted Net Cash Flow
  • Net Present Value
  • Internal Rate of Return
  • Effect of Accelerating Production
  • Effect of Project Delay
  • Payback Period
  • Profit/Investment Ratio
  • Capital Productivity Index
  • Evaluating Incremental Projects
  • Project Ranking based on Economic Indicators
  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Spider and Tornado Diagrams
  • Probability Distribution
  • Monte Carlo Simulation
  • Introduction to Spreadsheet Calculation
  • Simple Cash Flow Using Excel
  • Setting up an Integrated Economic Model of a Typical Oil Field Development Project including Sensitivity Analysis