Petroleum Project Economics & Risk Management

This workshop is aimed at delegates with little or no previous project investment appraisal experience. Recent attendees have included:

·        Explorationists and petroleum/reservoir engineers

·        Asset managers, project managers and facilities engineers

·        Information systems managers and project leaders

·        Management accountants, finance and contracts specialists

·        Government and advisory executives

·        Service/supplier company personnel

• identifying project cash flows and sources of information
• project payback
• net present value (NPV)
• internal rate of retunr (IRR) and the cost of capital
• profitability index (PI)
• strengths & limitations of each method
• How to optimise expenditure
• How to deal with inflation and with exchange rates
• Taking account of taxation
• Accounting measures vs economic measures
• understanding other financial criteria for decision making
• balancing short term vs long term business objectives
• Decision points for oil fields and gas fields
• risk & probability definitions and concepts
• risk identification, measurement & management
• forecasting as risk management
• assumptions, sensitivities & risk premia
• Exploration & appraisal decisions, uncertainty, risk and exposure Monte Carlo Simulation
• Economic models & spreadsheet design
• Development decisions
• work scope definition and options
• decommissioning economics & risks
• cost estimating and contingencies
• financing options
• construction contracts
• Further development decisions & economic cut off
• Preparing convincing project proposals
• Post project appraisal