Course Overview:
This intensive training course is designed to equip professionals with the critical financial and risk analysis skills necessary for successful petroleum project management. Participants will gain mastery in evaluating project economics, understanding key financial metrics, identifying and managing project risks, and applying advanced risk analysis techniques specific to the petroleum industry. The course combines theoretical frameworks with practical case studies to enhance decision-making and project performance in a volatile market environment.
Course Objectives:
By the end of this course, participants will be able to:
- Understand the fundamental financial principles and metrics relevant to petroleum projects.
- Perform comprehensive financial evaluations including NPV, IRR, cash flow analysis, and sensitivity analysis.
- Identify, assess, and prioritize financial and operational risks in petroleum projects.
- Apply risk mitigation strategies and contingency planning to safeguard project outcomes.
- Use advanced tools and models for quantitative risk analysis and decision-making.
- Interpret market factors affecting petroleum project financials and risk profiles.
- Communicate financial insights and risk findings effectively to stakeholders.
Who Should Attend:
- Project Managers and Engineers in the petroleum and energy sectors
- Financial Analysts and Investment Professionals focused on oil and gas projects
- Risk Managers and Compliance Officers
- Business Development and Strategy Professionals
- Procurement and Contract Managers
- Consultants and Advisors in the petroleum industry
- Senior Executives and Decision Makers overseeing petroleum projects
Course Outline:
Introduction to Petroleum Project Financials
- Overview of petroleum project lifecycle
- Key financial principles in oil and gas projects
- Understanding capital expenditure (CAPEX) and operational expenditure (OPEX)
- Basics of cash flow modeling and discounting techniques
Financial Metrics & Economic Evaluation
- Net Present Value (NPV) and Internal Rate of Return (IRR)
- Payback period and profitability index
- Sensitivity and scenario analysis for petroleum projects
- Break-even analysis and project financing basics
Risk Identification & Assessment in Petroleum Projects
- Types of risks: financial, operational, market, environmental, political
- Risk identification techniques and tools
- Qualitative and quantitative risk assessment methods
- Risk matrices and probability-impact charts
Advanced Risk Analysis & Mitigation Strategies
- Monte Carlo simulation and decision trees for risk modeling
- Risk-adjusted financial metrics and real options analysis
- Designing risk mitigation and contingency plans
- Integrating risk management with project governance
- Case study: Risk analysis and financial evaluation of a petroleum project
Market Dynamics and External Risk Factors
- Oil price volatility and its impact on project economics
- Geopolitical and regulatory risk considerations
- Environmental, social, and governance (ESG) risks in petroleum projects
- Communicating financial and risk reports to stakeholders
Practical Application and Final Assessment
- Hands-on exercises with financial models and risk analysis tools
- Group project: Financial and risk analysis of a simulated petroleum project
- Presentation of group findings and recommendations
- Course review, Q&A, and final assessment