COURSE OVERVIEW:

In the volatile energy sector, the ability to conduct rigorous economic evaluations is essential for making sound investment decisions regarding petroleum assets. This course provides a high-level framework for the financial modeling and economic appraisal of upstream and downstream petroleum projects, utilizing modern PC-based tools. It focuses on the strategic integration of technical data, market dynamics, and fiscal regimes to determine the commercial viability of exploration and production initiatives.

The scope of this training encompasses the entire economic evaluation lifecycle, from production forecasting and capital expenditure (CAPEX) estimation to the calculation of net present value (NPV) and internal rate of return (IRR). Participants will learn how to build sophisticated economic models that incorporate various fiscal systems, including Production Sharing Contracts (PSCs) and Royalty-Tax regimes. The course addresses the complexities of "Risk and Uncertainty" analysis, utilizing sensitivity studies and Monte Carlo simulations to evaluate project resilience.

Coverage includes the analysis of "Price Forecasting," the management of decommissioning and abandonment liabilities, and the implementation of robust "Decision-Tree" analysis. Attendees will learn how to utilize Microsoft Excel and specialized petroleum economic software to conduct "What-If" scenarios and optimize project economics. By mastering the economic evaluation of petroleum projects, professionals will be able to provide the financial clarity required for strategic capital allocation in the energy industry.

COURSE OBJECTIVES:

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

• Build comprehensive economic models for petroleum projects using PCs.
• Integrate technical production profiles into financial spreadsheets.
• Calculate core economic metrics: NPV, IRR, Payback, and PI.
• Navigate diverse international fiscal regimes: PSCs vs. Royalty-Tax.
• Conduct sophisticated sensitivity and "Tornado" chart analysis.
• Utilize Monte Carlo simulations to evaluate project risk and uncertainty.
• Develop accurate CAPEX, OPEX, and ABEX (Abandonment) estimates.
• Analyze the impact of oil and gas price volatility on project viability.
• Apply "Decision-Tree" analysis to exploration and appraisal choices.
• Calculate "Government Take" and "Contractor Share" in petroleum deals.
• Utilize economic tools for project optimization and portfolio management.
• Execute post-project economic audits and capture lessons learned.

TARGET AUDIENCE:

This course is intended for Petroleum Economists, Reservoir Engineers, Commercial Analysts, Project Managers, and Finance Professionals in the Oil and Gas sector.

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.