| Code | Date | Venue | Fee($) |
|---|---|---|---|
| UBP105 | 20-24 Oct 2025 | Port Harcourt | 1,500 |
Why Choose this Training Course?
Petroleum economics involves the application of the techniques of economic analysis at every stage in the development of oil and gas exploration and production projects. The economics of oil and gas projects are affected by a range of factors, including: uncertainties and the level of knowledge about the oil or gas field; the development plan and cost assumptions; product pricing and market conditions; applicable fiscal regimes
By analysing factors like these, petroleum economists are able to assist in making investment decisions, such as deciding whether or not to drill an exploration well, progress an appraisal well or whether or not to proceed with the maturation of a notional field develop plan.
Petroluem Economics is crucial in the negotiations around production sharing agreements, crude allocation, entitlement share/economic interest, reserves accounting, business planning including project feasibility to sales point.. It is also critical in de-risking project uncertainties including non-technical risks and testing the boundaries of project sensitivities to delay, price, cost, volumes and fiscal regimes. Petroleum economics provides the tool for all management decision making.
Could you answer the following three questions for your next project?
- Should I proceed, yes or no?
- What is it worth (NPV)?
- what is the impact of a potential downside?
Before undertaking any project, these questions should be answered. This course will provide the fundamentals necessary to enable you to do so.
This training course has the following objectives:
- Budgeting and financing
- Contractual arrangements
- Cash flow techniques for economic evaluation
- Appreciation of economic indicators required for project selection
Training Objectives
What are the Goals?
By the end of this training course, participants will be able to:
- Construct and evaluate cash flows
- Apply and compute basic economic screening criteria
- Increase your knowledge of global and local oil and gas business, basic petroleum economic analysis , and profitability assessment
- Model risk and uncertainty to assist decision analysis
- Learn and use basic units, conversions, and classification systems common in the industry.
- How to make optimal decisions in the oil and gas industry
Target Audience
Who is this Training Course for?
This training course is suitable to a wide range of professionals but will greatly benefit:
- Asset Managers
- Operation Managers
- Petroluem Engineers
- Planning Managers
- Drilling Engineers
- Contract Managers
- Project Engineers
- Financial Managers
- Team Leaders & Supervisors
Training Methods
How will this Training Course be Presented?
The instructor will utilize a variety of proven adult learning, teaching and facilitation techniques. Teaching methodology will be classroom-style with highly interactive, exercises and case studies.
Organisational Impact
The organisation will gain, in sending their employees to attend this particular training course through the following:
- Managers and senior executives use economics to make capital decisions - used for both investments and divestitures.
- Ability to manage the associated project risks, thereby reducing the investor’s exposure to financial downside while taking advantage of potential upside.
Personal Impact
- Knowledge of the different metrics of economics and how they can be used to evaluate projects
- Ability to create project investment analysis
- Ability to be proactive in identification of risk sources
- Improved skills in decision making in upstream operations - ability to convert hydrocarbon volumes to ‘monetary value, a requirement for consistent means of determining both the absolute and relative attractiveness of investment opportunities.
Daily Agenda
Day One:
- Casflow Analysis
- Value and Discounting
- Inflation
- Screen criteria
- Project sensitivity
Day Two:
- Breakeven price & Tariffs
- Petroleum Contracts & Agreement
- Decision Trees
- Exploration Economics
- Value of Information
Day Three:
- Acquistion and Divestment.
- Introduction to probabilistics
- Look-back analysis/Value Tracking.
- LNG business Overview.
- Introduction to modeling.