Course Description

Financial considerations for projects and investments are an ever increasing concern. This is especially true as petroleum projects become more complex and costly.

Successful companies work using a decision making framework which includes a strict project progression (or gating) procedure to allow sound financial decisions to be made based upon a rigorous analysis of risk and uncertainty.

It is therefore critical that all key members of the team understand the financial risks involved in business decision making. This training is an excellent primer for professionals outside the financial field as well as refresher course across a wide range of financial topics for the finance or accounting professional.

Development of projects using multi-disciplinary teams is a necessity. These professionals will learn terms and concepts that are vital in development of the understanding required.

The career path to increased responsibilities and corporate advancement must include a clear understanding of business financial considerations and risk analysis.

 A training course that creates a decision making framework for analyzing, interpreting & evaluating the vast economic & risk parameters of oil & gas projects

Course Objective

·         Gain a broad understanding of economics in the petroleum industry

·         Learn the language of financial and accounting professionals

·         Understand cash flow and profit analysis techniques

·         Perform discounted cash-flow economic evaluations

·         Examine profitability and capital efficiency Indicators including:
– Net Present Value (NPV) and Internal Rate of Return (IRR) analysis
– Finding, lifting and development costs
– Profitability Index, payback time and maximum exposure

·         Apply screening and ranking techniques

·         Use probability, expected monetary value and value of information

·         Deal with uncertainty through risk and sensitivity analysis

·         Explore the differences between additional vs accelerated reserves

·         Understand the different petroleum fiscal environments

·         ~

Who Should attend?

·         Any professional involved in the planning, execution or auditing of upstream oil and gas projects

·         Project decision making contributors, including: Petroleum and chemical engineers, geologists, geophysicists, legal and government

·         Finance/accounting staff and commercial personnel desiring a refresher or an opportunity to apply economic and finance tools in project decisions

Course Outline