COURSE OVERVIEW:

Petroleum economics is the critical bridge between engineering possibility and commercial reality. This course provides a comprehensive exploration of the financial tools and fiscal frameworks used to evaluate the viability of upstream projects. Participants will learn how to move beyond technical production profiles to create detailed economic models that account for taxes, royalties, capital costs, and the time value of money, ensuring that investment decisions are based on rigorous financial analysis.

The curriculum covers the diverse fiscal systems governing global oil and gas production, including Production Sharing Contracts (PSCs), Concessions, and Service Agreements. Attendees will examine how these systems influence the sharing of risk and reward between the host government and the investor. The course provides a deep dive into the "measures of merit” such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period—that are used to rank competing projects in a corporate portfolio.

Uncertainty and risk management are central themes throughout the training. Participants will learn how to conduct sensitivity analysis, scenario planning, and Monte Carlo simulations to quantify the impact of oil price volatility and reservoir uncertainty on project outcomes. By the end of the program, engineers and commercial professionals will be equipped to present robust economic evaluations that justify capital allocation and support strategic asset management in a changing energy market.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

• Explain the fundamental principles of the time value of money.
• Calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) of a project.
• Distinguish between various global fiscal systems and their impact on profitability.
• Construct a comprehensive cash flow model for an oil or gas asset.
• Determine the "Economic Limit" and abandonment pressure of a field.
• Analyze the impact of "Cost Oil" and "Profit Oil" in Production Sharing Contracts.
• Perform sensitivity analysis on key drivers such as oil price and CAPEX.
• Utilize decision trees to evaluate appraisal and development options.
• Calculate the impact of depreciation, depletion, and amortization on taxes.
• Evaluate the profitability of marginal fields under different tax regimes.
• Quantify project risk using Monte Carlo simulation techniques.
• Rank competing investment opportunities within a corporate portfolio.
• Communicate economic findings clearly to senior management and stakeholders.

TARGET AUDIENCE:

This course is designed for Petroleum Engineers, Project Managers, Commercial Analysts, Geoscientists, and Financial Professionals involved in the evaluation of upstream oil and gas investments.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximise the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.