Economic Evaluation Of Petroleum Projects With The Use Of PC

Start Date: 24 Mar 2019
End Date: 28 Mar 2019
Duration: 5
Country: Singapore
Category: Project & Contracting & Law

Course Description


The workshop will include a number of exercises aimed at enhancing each participant capability to conduct various economic evaluations. Each participant will attempt to develop spreadsheet calculations of various economic analyses. At the end of the workshop each participant will be given a comprehensive spreadsheet file that can carry out a complete economic evaluation including a sensitivity analysis.

Course Objective


This workshop provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. It covers the techniques which assist in making investment decisions. It also covers cash flow analysis, economic indicators, risk and uncertainty.


Who Should attend?


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. This workshop is also recommended for supervisors & managers in the Planning, Exploration, Production, Projects, Financing and Technical Departments.

Course Outline


     Cash Flow Analysis

      -  Cash Flow and Profit

      -  Depreciation

      -  Sunk Costs

      -  Cash flow & Inflation

      -  Depreciation and Escalation

      -  Nominal and Real Cash Flow

      -  Net After Tax Cash Flow

      -  Project Financing

     Economic Indicators

      -  Present Value Concept

      -  Discount Factors

      -  Net Present Value

      -  Interest & Inflation

      -  Discounting & Deflation

      -  Internal Rate of Return

      -  Effect of Start-up Date

      -  Payback

      -  Discounted Profit/Investment Ratio

      -  Comparing Economic Indicators

     Risk and Uncertainty

      -  Categories of Risk

      -  Expected Value

      -  Probability Analysis

      -  Decision Tree Analysis

      -  Farm-out Decision

      -  Production Sharing (EPSA)

      -  Sensitivity Analysis

      -  Histogram Probabilities

      -  Reserves Distribution

      -  Monte Carlo Simulation

§         Final Exercise using PC.

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