Economics of Petroleum Exploration

by Golden Masters for Training & Consultancy

The training course will enable the participant to make crucial decisions in negotiations involving Production Sharing Contracts PSC’s and purchasing oil and gas properties.

AED 17000

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img Duration

5 days

Course Details

Course Description 

Economics drives the entire oil/gas industry. Almost every decision is made on the basis of an economic evaluation, performed to determine the value and ranking of competing projects. In many cases, the goal of the company is to make decisions that have the best chance of maximizing the present day profit.

Economics of petroleum exploration involves the application of economic analyses in the development of oil and gas exploration and production. The economics of oil and gas projects are affected by a variety of factors, including the location of the oil or gas field, the type and number of wells, market conditions and the fiscal regime i.e. the tax & royalty systems in place.

By analyzing these factors, petroleum economists are able to make investment decisions such as whether or not to drill an exploration well or whether or not to develop an entire petroleum production project. The training course will enable the participant to make crucial decisions in negotiations involving Production Sharing Contracts PSC’s and purchasing oil and gas properties.

This training course will feature:

- The theory of upstream petroleum economics based on the time value of money

- How oil and gas economics are essential for comparing values of competing projects

- Critical evaluation and appraisal of the opportunities and challenges of this pivotal sector of the energy industry

- The assessment and management of the technical, economic and other risks associated with the different phases of an oil or gas projects

- An understanding and critical awareness of the principles, theory and practice of how economic analyses are performed

- A comprehension of the machinations of the international oil and gas industry

- Focusing on management interpretation of the diversity of fiscal arrangements and PSC’s

- Applying a judicious overview of contemporary issues like climate change and environmental concerns in exploration and development

Course Objective:

By the end of this training course, participants will be able to:

Calculate the key economic metrics used in investment decision making

Appreciate the geological and engineering inputs to the cash flow model

Understand oil and gas pricing and forecasting

Build Excel-based economic models in both tax/royalty and production sharing contract fiscal systems

Apply the principles of Oil and Gas economics to decision making relating to field development options

Understand development options (including modelling cash flows, profitability and risk indicators, net present value, and investment appraisal), incremental analysis and economics

Understand and manage the key characteristics of the oil and gas industry and activities

Course Certificate:

Masters Consultant Certificate will be issued to all attendees upon course completion

Course Outline:

Day One: Oil & Gas Economics

- Introduction to Energy Finance and Economics

- Geopolitics and world Oil and Gas markets

- Overview of world petroleum consumption and supply

- Oil and Gas prices and prospects for the future

- Transportation of Oil and Gas

- Storage of Oil and Gas

Day Two: Oil & Gas Value Chain

- Adding value: The refining process & Petrochemicals

- Petroleum products

- Sales and marketing of oil and gas products

- Netback Calculations

- Reference pricing

- OPEC and the future role of a cartel

Day Three: Oil & Gas Principles of Development Economics

- IOC's v’s NOC's and Fiscal regimes

- Basic Principles of Development Economics

- Financing and financial performance

- Financial and Economic Analysis in the Energy Industry

 Financing Large Energy Projects
 
- Economics of a field development
 
Day Four: Oil & Gas Project Cash flow

- Conducting a Project Cash flow

- Calculating a discounted cash flow

- Profitability indicators

- Project screening and ranking

- Project Sensitivity analysis

- Case study: Exploration economics
 
Day Five: Oil & Gas Derivative Markets and Hedging

- Hedging of financial risks of oil and gas projects

- Forward, Futures, and options

- Real-option evaluation analysis and Energy trading commodities risks

- How do oil and gas companies handle operational risks?

Masters Training Company was established in response to the growing need for quality training to support the business community within your Company, Department or Organization by providing a high standard of Training Programs, Courses, Seminars, Workshops and Consultancy Services to employees in a very competitive business environment. 

 
Following the latest trends and ideas in Technology and Management techniques, and with its in-depth knowledge of the business environment, Masters Training Company is able to meet the special requirements of both local and international business throughout the Middle East. Masters Training & Consulting is an independent multinational firm with more than 25 years of experience in helping regional organizations develop their human capital in all fields of management. 
 
Since 1990, we have been entrusted by our clients to provide the most reliable training and consulting products and services in the region. Our innovative and diversified range of training programs and consulting services are designed and delivered by an ever-growing team of full time multilingual consultants experienced in providing solutions relevant to this part of the world and applicable to today’s business challenges.
 
We pride ourselves on our track record in this regard and on our long-standing relationships with our clients, many of whom have been with us since we started business. 
 
 
Our public training programs have attracted more than 300,000 participants from almost 3,000 organizations many of whom also entrust us with their needs for bespoke in-company programs. Our client base is steadily growing and so is our commitment to remain the regional leaders in the fields of training and consulting.

Masters is also an approved vendor from KHDA & ILM

  • Sheikh Zayed Road Branch

    Kherbash Tower, Office # 1803 & 1804, Sheikh Zayed Road, Dubai

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