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Petroleum project economics and risk management - 5 day In-house Training Course
This Petroleum project economics and risk management course is a highly interactive training solution that introduces delegates to a structured approach in project investment appraisal, with a specific focus on the oil and gas industry.
The course covers a number of topics in the project appraisal and evaluation area of the petroleum industry, including:
- applying economic and risk management tools in oil and gas project proposals
- calculating the financial viability of risk-affected expenditure proposal projects
- evaluating the ranking of different projects
- preparing convincing project proposals that will win approval from management, partners and the government
- improving outcomes at both the project and business level
The course employs a large number of case studies, industry-specific scenarios and practical exercises in order to provide delegates with realistic situations within which to apply the skills learned.
Suitability - Who should attend?
This Petroleum project economics and risk management course is designed for delegates with little or no experience in project investment appraisal.
The figures who have attended recent editions of this course include:
- Explorationists and petroleum/reservoir engineers
- Asset managers, project managers and facilities engineers
- Information systems managers and project leaders
- Management accountants, finance and contracts specialists
- Government and advisory executives
- Service/supplier company personnel
In order to complete the practical exercises, attendees should bring their own laptop ensuring that they have Microsoft Excel pre-installed. Prior knowledge of spreadsheets is required.
Outcome / Qualification etc.
Participants on this course are eligible for 35 hours of CPD accreditation on completion.
Training Course Content
- Identifying project cash flows and sources of information
How to calculate project benefits and interpret the answer
- Project payback
- Net Present Value (NPV)
- Internal Rate of Return (IRR) and the cost of capital
- Profitability Index (PI)
- Strengths and limitations of each method
Project ranking - how to choose the best alternative
How to optimise expenditure
How to deal with inflation and with exchange rates
Taking account of taxation
Accounting measures versus economic measures
- Understanding other financial criteria for decision making
- Balancing short term versus long term business objectives
Dealing with risk and uncertainty
- How to identify and quantify project risks and uncertainties
- Sensitivity analysis
- How to draw and interpret spider and tornado diagrams
- Calculation of maximum exposure as a risk measure
- Decision trees and the calculation of Expected Monetary Value (EMV)
Economics, risk and decisions - decision points are risk points
- Decision points for oil fields and gas fields
- Risk and probability definitions and concepts
- Risk identification, measurement and management
- Forecasting as risk management
- Assumptions, sensitivities and risk premiums
Exploration and appraisal decisions, uncertainty, risk and exposure
Monte Carlo simulation
Economic models and spreadsheet design
- Workscope definition and options
- Decommissioning economics and risks
- Cost estimating and contingencies
- Financing options
- Construction contracts
Further development decisions and economic cut-off
Preparing convincing project proposals
Contact MDT International if you would like to arrange this in-house course.
MDT International - Finance, Commercial & Management Courses for the Oil & Gas Industry
We deliver commercial training courses in most major established and emerging international oil and gas hubs. Whether you're taking part in an open course, or benefiting from the customised experience of our in-house training, you know what you’ll learn from some...