COURSE OVERVIEW

This practical and highly-interactive course includes various practical sessions and exercises. Theory learnt will be applied using “MS-Excel” application. 

This course is designed to provide participants with a detailed and up-to-date overview of petroleum economics and risk analysis. It covers the cash flow analysis, energy usage, basic principles of oil and gas economics and economics terms; the cash flow calculation, depreciation methods, loss carry forwards, inflation, nominal and real cash flow and abandonment and sunk costs; and the economic indicators including present value concept, discount factor and net present value and internal rate of return. 

 

During this interactive course, participants will learn the payback period, profit/investment ratio, incremental projects and effect of project delay; the risk and uncertainties, expected value concept, decision tree analysis, farm-out decision, probability analysis, sensitivity analysis, probability distribution and monte carlo simulation; the spreadsheet calculation, simple cash flow using Excel, NPV calculations and application of economic indicators; and the oil field development model including integrated economic model of a typical oil field development and project sensitivity analysis for a selected model.