Oil & Gas Training
and Competency Development

Location Kuala Lumpur, Malaysia
Start14 May 2018
End17 May 2018
Discipline Economics and Finance ,
Field Development Planning
LevelFoundation
Duration4 Days
CostUSD 4,500.00
Delivery Mechanism Practical Training with Software
NExT Malaysia is a HRDF approved Training Provider



Course Progression Map - Petroleum Economics

Print Email

Course Progression Map - Petroleum Economics

Petroleum Economics

4.5 Average client rating (based on 83 attendee reviews)

This course is designed for learning the basics of petroleum economics and project selection. Several key concepts that will be covered are the time value of money, cash flow basics, common economic indicators, fiscal systems and project selection fundamentals.  An introduction to basic risk analysis will also be presented.

The participants will receive an overview of petroleum economics, including an introduction to basic cash flow and net present value.  The main types and elements of fiscal regimes around the world will be presented.  During this course participants will evaluate and make recommendations on potential oil and gas investments.

This course mainly uses Excel but can be taught with Merak Peep and Decision Tool Kit.

  • Agenda
  • Audience
  • Prerequisites
  • Location
  • Agenda

    Day 1

    Project Economics

    • Methods of evaluation
    • Project lifecycle and who is involved
    • Common types of oil and gas upstream projects
    • Forecasting production, prices and expenses

    Participants will learn why project economics are necessary and the methods for economic evaluation.  They will also learn about the project lifecycle and who is involved.  During the course, common types of oil and gas upstream projects will be presented.  The concepts and methods of forecasting production, prices and operating expenses will also be reviewed.

    Day 2

    Cash Flow and Economic Indicators

    • Defining revenue and operating expenses
    • Capital expenditures
    • Discounting and present value
    • Economic indicators

    On this day the cash flow stream will be constructed in detail, including company revenue, operating, and capital expenditures.  In addition, the concepts of discounting and net present value will be presented and practiced.  Multiple economic indicators will be discussed, including DPI, IRR, hurdle rate, WACC and more.

    Day 3

    Fiscal Regimes

    • The main types and elements of fiscal regimes
    • Cash flows for concessionary systems and production sharing contracts
    • Service agreements
    • Current trends in fiscal systems

    Participants will be introduced to the main types and elements of fiscal regimes around the world.  They will also learn to build cash flows for concessionary systems and simple production sharing contracts.  The different types of service agreements will be reviewed, and then investments under different fiscal regimes will be compared.

    Day 4

    Project Investment Analysis

    • Defining risk, sensitivity analysis, and calculating EMV and ENPV
    • Incremental investment analysis
    • Multiple project investment analysis including project ranking
    • The capital budgeting and project selection process

    During this day participants will discuss and incorporate risk and sensitivity analysis in order to calculate EMV and ENPV.  The purpose of incremental investment analysis will be presented.  They will also review a general capital budgeting and the project selection process.  Participants will then evaluate and make recommendations about potential oil and gas investments.

  • Audience

    Anyone requiring a fundamental knowledge of Petroleum Economics and oil and gas project recommendations.

  • Prerequisites

    Intermediate knowledge of Excel.

  • Prerequisites

  • Location

    Kuala Lumpur

    Kuala Lumpur is the capital and largest city of Malaysia.

    Beginning in the 1990s, the city has played host to many international sporting, political and cultural events including the 1998 Commonwealth Games and the Formula One World Championship. In addition, Kuala Lumpur is home to the tallest twin buildings in the world, the Petronas Twin Towers.

    Protected by the Titiwangsa Mountains in the east and Indonesia's Sumatra Island in the west, Kuala Lumpur has a tropical rainforest climate which is warm and sunny, along with abundant rainfall, especially during the northeast monsoon season from October to March.

    The major tourist destinations in Kuala Lumpur include the Dataran Merdeka (the Independence Square), the House of Parliament, the Istana Budaya, the Istana Negara (National Palace), the Kuala Lumpur Tower, the Muzium Negara (National Museum), the Putra World Trade Centre, the Tugu Negara (National Monument) and mosques such as the Masjid Jamek, the Masjid Negara (National Mosque) and the Federal Territory Mosque.

    Other tourist attractions include the Aquaria KLCC, the Batu Caves, the Makam Pahlawan (National Mausoleum), the National Science Centre, Petaling Street, the Royal Selangor Pewter Visitor Centre, the Zoo Negara (National Zoo), and events such as Malay cultural centres, the Chinese cultural festivals at the Thean Hou Temple and the Thaipusam procession at the Sri Mahamariamman Temple. The Golden Triangle, the commercial hub of the city, contains the Petronas Twin Towers and has a distinctive nightlife. Trendy nightclubs, bars and lounges, such as the Beach Club, Espanda, the Hakka Republic Wine Bar & Restaurant, Hard Rock Cafe, the Luna Bar, Nuovo, Rum Jungle, the Thai Club, Zouk, and many others are located within and around Jalan P. Ramlee, Jalan Sultan Ismail and Jalan Ampang.

    Hotels, from five-star to budget types, have cropped up everywhere to accommodate the influx of tourists each year. There are many hotels near Kuala Lumpur's entertainment and business districts.

    Kuala Lumpur alone has 66 shopping malls and it is the retail and fashion hub for Malaysia. Suria KLCC is one of Malaysia's premier shopping destinations due to its location beneath the Petronas Twin Towers.

    Kuala Lumpur Sky Line

    The Perdana Lake Gardens near the Malaysian Parliament building includes a Butterfly Park, Deer Park, Orchid Garden, Hibiscus Garden and Kuala Lumpur Bird Park, Southeast Asia's largest bird park.

    There are three forest reserves within the city namely the Bukit Nanas Forest Reserve in the city centre, the oldest gazetted forest reserve in the country, Bukit Sungai Putih Forest Reserve and Bukit Sungai Besi Forest Reserve. Bukit Nanas, in the heart of the city centre, is one of the oldest virgin forests in the world within a city. These residual forest areas are home to a number of fauna species particularly monkeys, tree shrews, squirrels and birds.

    Kuala Lumpur is a hub for cultural activities and events in Malaysia. Among the centres is the National Museum which is situated along the Mahameru Highway. Its collection comprises artifacts and paintings collected throughout the country. Kuala Lumpur also has an Islamic Arts Museum which houses more than seven thousand Islamic artefacts including rare exhibits as well as a library of Islamic art books. However, the museum's collection not only concentrate on works from the Middle East, the museum also puts the emphasis on Asia, with China and Southeast Asia especially well represented. This museum features some impressively decorated domes and large open exhibition spaces. It is located at Jalan Lembah Perdana next to the National Mosque.

    Kuala Lumpur is one of the host cities for the Formula One World Championship, the open-wheel auto racing A1 Grand Prix and the Motorcycle Grand Prix with races being held at Sepang International Circuit in the neighbouring state of Selangor, next to the Kuala Lumpur International Airport.

    From Wikitravel licensed under Creative Commons Attribution-ShareAlike 3.0

    • Timezone : GMT+08:00, Singapore (Singapore)
Filter upcoming courses by Country

Upcoming Courses
Calgary, Alberta, Canada October 23 - 26, 2017 Kuala Lumpur, Malaysia November 06 - 09, 2017 Cairo, Egypt March 11 - 14, 2018 Abu Dhabi, United Arab Emirates April 02 - 05, 2018 Kuala Lumpur, Malaysia May 14 - 17, 2018 NExT Malaysia is a HRDF approved Training Provider Lagos, Nigeria May 14 - 17, 2018 Kuala Lumpur, Malaysia November 26 - 29, 2018 NExT Malaysia is a HRDF approved Training Provider
NExT Technical Forum:
Continue your in-class discussion and questions in an online community