Project Economics & Financial Decision Making in Oil & Gas

Duration: 5 Days
Target Audience: Project Managers, Financial Analysts, Economists, Engineers, and Commercial Professionals in Oil & Gas
Delivery Mode: Classroom / Virtual with Financial Modelling Workshops and Case Studies
Level: Intermediate to Advanced
Price: USD 4,700

Course Overview

This course provides the practical knowledge needed to evaluate the financial viability of upstream oil and gas projects. Participants will learn economic indicators, fiscal terms, cash flow modeling, sensitivity analysis, and project valuation, enabling informed investment and development decisions.

Day-by-Day Outline

Day 1 – Fundamentals of Oil & Gas Economics

- Cash flow basics for exploration and development projects
- CAPEX and OPEX estimation methods
- Revenue forecasting and price assumptions
- Exercise: Build a simple project cash flow model

Day 2 – Fiscal Regimes & Tax Considerations

- Royalties, taxes, PSCs, and hybrid fiscal models
- Understanding government take and contractor share
- Comparing fiscal regimes across countries
- Workshop: Analyze fiscal terms for a hypothetical asset

Day 3 – Key Financial Metrics & Valuation

- Calculating NPV, IRR, payback period, ROI
- Discounted cash flow (DCF) analysis techniques
- Using multiples in asset valuation
- Exercise: Value an exploration project using DCF

Day 4 – Sensitivity & Scenario Analysis

- Performing sensitivity analysis on key variables
- Running scenarios for prices, CAPEX, and production profiles
- Visualizing outcomes with tornado charts
- Workshop: Conduct sensitivity and scenario analysis in Excel

Day 5 – Decision-Making & Portfolio Management

- Integrating economics into project sanction decisions
- Building balanced exploration-development portfolios
- Case studies of successful and failed financial decisions
- Capstone Exercise: Develop an economic justification for a field development proposal

Expected Learning Outcomes

Build and analyze oil and gas project cash flows
Understand and model different fiscal regimes
Calculate key economic indicators for investment decisions
Perform sensitivity and scenario analysis to assess risks
Develop recommendations based on robust economic evaluations

Training Methods

- Classroom instruction and interactive discussions
- Case studies and exercises with real-world data
- Excel-based economic models and production forecasts

Customization for Regional Needs

- Examples from regional onshore/offshore fields
- English delivery option available
- Integration with national regulatory framework

Trainer Profile

- Multidisciplinary instructors (reservoir, production, drilling)
- Regional NOC/IOC engineering advisors
- Guest speakers from petroleum economics and HSE backgrounds

Certification

Certificate of Completion and individual assessment report provided.