Oil & Gas Training
and Competency Development

Location Abu Dhabi, United Arab Emirates
Start02 Apr 2018
End05 Apr 2018
Discipline Economics and Finance ,
Field Development Planning
Duration4 Days
CostUSD 3,600.00
Delivery Mechanism Practical Training with Software
20% discount will be applied during checkout.

Course Progression Map - Petroleum Economics

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Course Progression Map - Petroleum Economics

Petroleum Economics

4.5 Average client rating (based on 92 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

    Abu Dhabi

    Abu Dhabi is the capital of and the second largest city in the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western coast.

    Abu Dhabi has a hot climate. Sunny/blue skies can be expected throughout the year.

    Abu Dhabi

    The buildings in Abu Dhabi are too diverse to be characterised by one particular architectural style, especially as they have been built over a long period of time and drawn on a wide range of influences.

    Abu Dhabi is home to a number of cultural institutions including the Cultural Foundation and the National Theater. The Cultural Foundation is home to the UAE Public Library and Cultural Center. Various cultural societies such as the Abu Dhabi Classical Music Society have a strong and visible following in the city. The recently launched Emirates Foundation offers grants in support of the arts, as well as to advance science and technology, education, environmental protection and social development. The city also stages hundreds of conferences and exhibitions each year in its state-of-the-art venues, including the Abu Dhabi National Exhibition Centre (ADNEC) which is the Persian Gulf's largest exhibition center and welcomes around 1.8 million visitors every year. The Red Bull Air Race World Series has been a spectacular sporting staple for the city for many years, bringing tens of thousands to the waterfront. Another major event is the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

    The diversity of cuisine in Abu Dhabi is a reflection of the cosmopolitan nature of the society. Arab food is very popular and is available everywhere in the city, from the small shawarma to the upscale restaurants in the city's many hotels.

    Abu Dhabi International Airport (AUH) is the city's main aviation hub and the second busiest airport in the UAE.

    From Wikitravel licensed under Creative Commons Attribution-ShareAlike 3.0

    • Timezone : GMT+04:00, Arabian (Abu Dhabi, Muscat)
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