COURSE OVERVIEW:

The capital-intensive nature of the Oil and Gas industry requires a sophisticated approach to investment appraisal and economic forecasting. This course provides a technical framework for evaluating the commercial viability of upstream and downstream projects, focusing on the interplay between technical costs, fiscal regimes, and market volatility. It equips participants with the mathematical and analytical tools necessary to make "Value-Driven" decisions in an environment of high uncertainty and long-term risk.

The scope of this training encompasses the calculation of "Net Present Value" (NPV), "Internal Rate of Return" (IRR), and "Payback Periods," tailored specifically for energy sector dynamics. Participants will learn how to navigate various "Production Sharing Agreements" (PSA), "Concession" models, and "Service Contracts," while accounting for royalty and tax structures. The course addresses the complexities of "Sensitivity Analysis" and "Monte Carlo" simulations, providing practical tools for quantifying the impact of oil price fluctuations and reservoir performance on project economics.

Coverage includes the analysis of "Capital Expenditure" (CAPEX) and "Operating Expenditure" (OPEX) estimation, the implementation of "Risk-Adjusted" hurdle rates, and the execution of "Decision Tree" analysis for appraisal wells. Attendees will explore the "Value of Information" (VOI) and learn how to structure project finance and insurance to mitigate catastrophic risk. By mastering project economics and risk analysis, professionals will be able to safeguard organizational capital and maximize the "Asset Life-Cycle Value" in a competitive global market.

COURSE OBJECTIVES:

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

• Apply "Time Value of Money" (TVM) principles to Oil and Gas investments.
• Calculate NPV, IRR, and Profitability Index (PI) for field developments.
• Analyze "Production Sharing Agreements" (PSA) and "Concession" fiscal models.
• Evaluate the impact of "Royalty" and "Taxation" on project cash flows.
• Conduct advanced "Sensitivity" and "Scenario" analysis on project variables.
• Utilize "Monte Carlo Simulations" to quantify economic uncertainty.
• Develop robust "CAPEX" and "OPEX" estimates for energy projects.
• Apply "Decision Tree" analysis to exploration and appraisal choices.
• Determine the "Break-even Oil Price" for diverse asset portfolios.
• Analyze the "Value of Information" (VOI) for subsurface data acquisition.
• Assess "Political" and "Commercial" risks in international energy projects.
• Present "Investment Cases" to executive boards using standardized metrics.

TARGET AUDIENCE:

This course is intended for Project Managers, Commercial Analysts, Investment Engineers, Portfolio Managers, and Senior Finance Professionals in the energy 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.