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Practical Petroleum Economics & Fiscal Systems

Course Introduction

The course will cover cash flow analysis, deriving and understanding economic indicators and detailed probability and fiscal analysis. These are vital components of the evaluation of investments in todays international upstream oil and gas industry. Over the course of the three days, you will identify the criteria used in project economics decision-making, e.g. rate of return, NCF, NPV, PIR, Payout, EMV, RPI, as well as the objectives of different investors and producers in the context of the various decision-making criteria. You will learn a variety of analytical frameworks and tools, including base case analysis; sensitivity analysis and risk analysis (risked vs un-risked results). The course also covers full cycle vs half cycle analysis, including the role of government and tax terms, e.g. unburdened & burdened analysis, and the concept of Economic Rent, as well as such concepts as ring fencing.

Course Objective

  • Build analysis production profiles and use of exponential, harmonic, & hyperbolic decline curves
  • Determine netback prices, including adjustments for crude oil quality and gas composition
  • Determine capital and operating costs
  • Understand the criteria used to make investment decisions
  • Learn to incorporate financing and government fiscal terms into the analysis
  • Understand how to assess joint venture farm in/out options
  • Analyse the pitfalls that can trip up the inexperienced
  • Support informed investment decisions
  • Support management and negotiations
  • Contribute to policy dialogue and development
  • Training Details

    • Location : Europe
    • Date : Feb 20th - 22nd 2019