Course Description
The workshop will include a number of exercises aimed at
enhancing each participant capability to conduct various economic evaluations.
Each participant will attempt to develop spreadsheet calculations of various
economic analyses. At the end of the workshop each participant will be given a
comprehensive spreadsheet file that can carry out a complete economic
evaluation including a sensitivity analysis.
Course Objective
This workshop provides practical guidance in the application
of the techniques of the economic analysis currently used in the oil & gas
industry. It covers the techniques which assist in making investment decisions.
It also covers cash flow analysis, economic indicators, risk and uncertainty.
Who Should attend?
Engineers,
geologists, economists, accountants, technicians who need to learn how to
conduct economic evaluation and to understand the role of petroleum economics
in investment decision making. This workshop is also recommended for
supervisors & managers in the Planning, Exploration, Production, Projects,
Financing and Technical Departments.
Course Outline
Cash Flow Analysis
- Cash Flow
and Profit
- Depreciation
- Sunk Costs
- Cash flow
& Inflation
- Depreciation
and Escalation
- Nominal and
Real Cash Flow
- Net After
Tax Cash Flow
- Project
Financing
Economic Indicators
- Present
Value Concept
- Discount
Factors
- Net Present
Value
- Interest
& Inflation
- Discounting
& Deflation
- Internal
Rate of Return
- Effect of
Start-up Date
- Payback
- Discounted
Profit/Investment Ratio
- Comparing
Economic Indicators
Risk and Uncertainty
- Categories
of Risk
- Expected
Value
- Probability
Analysis
- Decision
Tree Analysis
- Farm-out
Decision
- Production
Sharing (EPSA)
- Sensitivity
Analysis
- Histogram
Probabilities
- Reserves
Distribution
- Monte Carlo Simulation
§ Final Exercise using PC.
