Economics of Deepwater Projects
This course is for people who already have some experience running project economics in the oil and gas industry, but would like to learn how to model and evaluate the economics of deepwater development projects. An overview of the exploration, development and production processes involved and included in the evaluation of deepwater projects will be presented.
An evaluation model and method for evaluating deepwater projects will be discussed via supporting case studies. Participants will learn how to setup the risked cash flow evaluations and incorporate common technical and non-technical risks and uncertainties in order to arrive at a complete evaluation of the economics of deepwater projects. This course will be conducted in workshop style, with about 50% of the curse being a hands-on environment by the participants.
This course uses Excel, as well as the Merak software Peep and Decision Tool Kit.
Framework for Deepwater Economic Evaluations
- Decision framework of deepwater projects
- Review case studies
- Structuring the decision analysis
The first day will introduce participants to the decision framework of exploration, development, and production for deepwater projects. The structure of the model and the decision analysis for deepwater projects will be presented and discussed via supporting case studies.
Development Schedule and Cash Flow
- Build the development schedule
- Identify and incorporate uncertainty
- Build project cash flow cases
Participants will build the cash flow cases required to evaluate the economics of deepwater projects. The common technical and non-technical uncertainties will be discussed and participants will learn how to incorporate these in the evaluation.
Deepwater Decision Analysis
- Building decision trees and tying economic cases to them
- Perform decision analysis and evaluate the project economic viability
- Discuss alternative solutions
The third day will be a continuation of the work started on the second day. The common technical and non-technical risks will be discussed and participants will learn how to incorporate these in their evaluation. The outcome for participants will be an economic framework that can be immediately used to evaluate the economics of specific deepwater projects.
Engineers, economists, managers, or other technical personnel with experience in project economics who want to learn how to model and evaluate the economics of deepwater projects.
Participants should have experience with petroleum economics, taken the NExT course Petroleum Economics (EF-TC1-NXT12680), or equivalent.