The program includes the introduction of upstream oil and gas economics and cash flow analysis, discounted cash flow analysis, capital budgeting techniques, project revenue and cost components. The effects of taxation, government regulatory requirements, net cash flow, and risk evaluation of exploration prospects are considered.
Upon completion of the course, participants will have a knowledge of discounted cash flow evaluation methodologies, key economic metrics for investment decision making. Engineering inputs to the cash flow model include oil and gas pricing and forecasting, global fiscal systems, the financial structure, production sharing contracts, cost recovery and profit splits. In addition, the participants learn how to interpret economic results, quantify risks, construct production sharing contract, and evaluate investment opportunities.
The purpose of the Programme is to provide participants with an in-depth understanding of the tools used in economic analysis and decision making tools with the oil and gas upstream industry.
Upon completion of the Programme, participants will be able to:
- Develop knowledge of upstream petroleum discounted cash flow evaluation methodologies
- Familiarize with key economic metrics used in investment decision making
- Understand the geological and engineering inputs to cash flow model
- Know how oil and gas pricing and forecasting works
- Understand fiscal systems globally
- Understand the financial structure and mechanisms of production sharing contracts including the calculation of cost recovery and profit oil split
- Interpret economic results and quantify risks
- Learn on how to construct production sharing contract
- Learn on how to evaluate investment opportunities
- Carry out investment profitability studies including all aspects of complex fiscal terms, inflation and financing;
- Analyze the economic results and carry out sensitivity analysis;
- Incorporate the geological risk and uncertainty in the economic evaluation of exploration - production projects;
- Develop basic computer models of the study of oil and gas development projects.
The Programme will be beneficial to regulators, auditors, financial analysts, engineers, economists and project managers who need to extend their understanding of the specific methods used to evaluate exploration and production projects in the oil and gas sector.