COURSE OVERVIEW:

The economic evaluation of oil and gas projects represents one of the most complex challenges in the energy sector due to high capital intensity and market volatility. This course provides a sophisticated framework for analyzing the financial viability of upstream, midstream, and downstream investments under conditions of significant uncertainty. It emphasizes the integration of geological, engineering, and economic data to create robust financial models that drive strategic investment decisions.

The scope of this training covers the entire project lifecycle, from initial exploration and appraisal to full-scale development and eventual decommissioning. Participants will master the use of advanced economic indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and discounted payback periods within the specific context of international petroleum fiscal regimes. The course explores the impact of varying royalty structures, production sharing contracts, and tax frameworks on project profitability and corporate cash flows.

Coverage includes the application of probabilistic risk analysis and Monte Carlo simulations to quantify geological and price uncertainties. Attendees will learn to utilize decision trees and real options analysis to evaluate management flexibility and the value of information in multi-stage projects. By combining rigorous economic theory with practical decision-making tools, this course enables professionals to optimize resource allocation and enhance the long-term value of their oil and gas portfolios.

COURSE OBJECTIVES:

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

• Construct detailed economic models for various oil and gas project types.
• Evaluate project profitability using NPV, IRR, and Profitability Index.
• Analyze the impact of different international fiscal regimes on project economics.
• Calculate the government take and the corporate take under production sharing contracts.
• Perform sensitivity analysis to identify key value drivers and project risks.
• Utilize Monte Carlo simulation to quantify uncertainty in production and pricing.
• Develop decision trees to evaluate complex, multi-stage investment choices.
• Apply real options analysis to value managerial flexibility in project execution.
• Assess the economic impact of carbon pricing and environmental regulations.
• Integrate geological risk and probability of success into financial forecasts.
• Conduct comparative economic analysis of different development concepts.
• Communicate complex economic findings and risk profiles to executive stakeholders.

TARGET AUDIENCE:

This course is designed for Petroleum Economists, Project Managers, Investment Analysts, Reservoir Engineers, Finance Managers, and Strategic Planners within the oil and gas industry.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximize 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.