Course Overview
This intensive 5-day program provides comprehensive training in petroleum economics, project valuation, and cost optimization for oil & gas professionals. Participants will learn to evaluate upstream investments, analyze fiscal regimes, and implement cost control strategies using industry-standard techniques and tools.
Course Objectives
By completing this course, participants will be able to:
- Apply economic evaluation methods to E&P projects
- Build cash flow models for field development
- Analyze fiscal systems (royalties, taxes, PSCs)
- Optimize capital and operating expenditures
- Assess risk and uncertainty in petroleum projects
- Make investment decisions using economic indicators
- Implement cost management best practices
Who Should Attend?
This course is essential for:
- Petroleum economists
- Business development managers
- Reservoir engineers
- Project managers
- Financial analysts
- Government energy officials
- Investment bankers (energy sector)
Detailed Course Outline
Module 1: Oil & Gas Value Chain Economics
- Upstream cost structures
- Price forecasting methodologies
- Market fundamentals (supply/demand, benchmarks)
- Energy transition economics
Module 2: Time Value of Money
- Discounted cash flow (DCF) analysis
- NPV, IRR, PI calculations
- Hurdle rate determination
- Excel modeling workshop
Module 3: Field Development Economics
- CAPEX/OPEX estimation
- Production decline modeling
- Abandonment cost provisions
- Case study: Offshore vs onshore development
Module 4: Fiscal System Analysis
- Royalty/tax systems
- Production sharing contracts
- Ring fencing provisions
- Government take calculations
Module 5: Risk Analysis Techniques
- Scenario analysis
- Sensitivity/spider diagrams
- Monte Carlo simulation
- Decision tree analysis
Module 6: Portfolio Optimization
- Project ranking methods
- Capital allocation strategies
- Portfolio balancing exercises
- Opportunity cost considerations
Module 7: CAPEX Optimization
- AFE preparation and control
- Drilling cost benchmarking
- Project phasing strategies
- Supply chain cost reduction
Module 8: OPEX Management
- Lease operating expenses (LOE) analysis
- Production cost benchmarking
- Maintenance cost optimization
- Digital cost tracking systems
Module 9: Energy Transition Economics
- Carbon pricing impacts
- CCUS project economics
- Renewable integration scenarios
- Stranded asset risks
Module 10: Capstone Project
- Full field economic evaluation
- Fiscal regime comparison
- Investment recommendation
- Certification assessment