Programme description & objectives
Participants attending this program will have a thorough background understanding of the general concept, procedure, and terminology of Project Economics and Profitability analysis as it relates to the petroleum sector. In particular, it is structured to emphasize the peculiarity and fiscal arrangement of the petroleum industry. It also provides project managers and analysts with a quantitative consideration of risk and uncertainty and how these factors can be used in formulating investment strategies in the industry. The program will also review the various contractual and fiscal terms prevalent in the local and International petroleum industry and how the various arrangements affect overall investments and profitability in the sector.

 

Venues	Dublin	London	Dubai	Edmonton	Lagos/Abuja
Dates		Aug 6 – 10	Apr 16 – 20 Dec 10 – 14		To be agreed
Cost	$3,900 per participant				TBA (=N=)

 

For Whom

• Company Executives
• Project consultants/ engineers
• Planning/investment executives
• Oil and gas analyst/ accountants
• Project managers
• Regulators in the oil and gas industry

 

Snapshot of course content

• General overview of the petroleum sector
• Profit Indicator
  • Cash flow
  • Net Cash Flow
  • Depreciation
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cash Flow
  • Sunk Costs
• Economic Indicators
  • Economic Indicators Definitions
  • Present Value Concept
  • Discount Factor
  • Net Present Value
  • Internal Rate of Return
  • Effect of Project Delay
  • Payback Period
  • Profit/Investment Ratio
  • Incremental Projects
  • Comparing Economic Indicators
• Impact of Taxes, Capital Allowance & Inflation
  • Income Tax Calculation
  • Depreciation allowance
• Introduction to Financial Accounting/Corporate Financial Reporting
  • Overview of Financial Statement
  • Financial Statement
  • Book Economics
  • Accounting Rate of Return
  • Project cash flow Profit Vs Accounting Profit
  • Net book Profit
• Analysis of Petroleum Investment
  • Incremental Analysis
  • Investment Analysis
  • Projects of Unequal lives
  • Comparison of Projects
• Contracts & Fiscal Arrangements in the petroleum industry
  • Types of Petroleum Contracts & fiscal arrangements
  • Formulation of Fiscal Arrangement
  • Constraints encountered by Host government
  • Elements of Petroleum Contracts
  • Contractual Agreement Systems
• Risks and Uncertainties
  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Spider and Tornado Diagrams
  • Probability Distribution
  • Monte Carlo Simulation
• Setting up Spreadsheet Calculation
  • Introduction to Spreadsheet Calculation
  • Simple Cash Flow Using Excel
• Setting up Oil Field Development Model
  • Setting up an Integrated Economic Model of a Typical Oil Field Development Project including Sensitivity Analysis