Advanced Oil & Gas Project Economics, Risk & Decision Analysis

• Senior management of an organisation who need to understand the importance of petroleum project economic and risk analyses
• Potential investors who should be able to understand and check the economic status of a project before investing further or for making any investment-related decisions
• Managers and supervisors as well as members of teams responsible for conducting the financial analyses
• Financial advisors and managers who provide financial advice to the senior management of an organisation
• Contract specialists responsible for preparing contracts covering all terms and conditions
• Asset managers managing the utilisation, upkeep and record of fixed assets of the organisation
• External economics and auditors responsible for checking financial statements of an organisation and confirming adherence to all norms and procedures
• Any other professional interested in knowing more about petroleum project economics and risk analysis

Day 1:

• Maintenance Practices
  • What is breakdown maintenance and when should it be employed?
  • What is preventive (calendar based) maintenance, and what are its major flaws?
  • What is predictive (condition based) maintenance, and what are its benefits?
  • What is proactive (reliability centered) maintenance, and what are its benefits? 
• Financial Modelling in the Oil and Gas Industry
  
  • Financial statements
  • Income statement
  • Balance sheet
  • Cash flow statement

Day 2:

• Overview of Cash Flow Analysis
  • Definition
  • Objectives
  • Methods of cash flow analysis
• Three Types of Cash Flows
  • Operations
  • Investing
  • Financing

Day 3:

• Advantages of Cash Flow Analysis
  
  • Maintain adequate cash reserves
  • Manage credit better
  • Help adjustments
  • Avoid production interruptions
  • Understand future plans and outcomes
  • Keep track of overdue payments
  • Manage surplus cash
• Challenges in Cash Flow Analysis
  
  • The time horizon for analysis of cash flows
  • Overstatement of profitability in cash flow statements
  • Understatement of profitability in cash flow statements
  • Time value of money

Day 4:

• Most Common Risks Faced By Petroleum Companies
  
  • Political risks
  • Geological risks
  • Price risks
  • Supply and demand risks
  • Cost risks
• Types of Economic Indicators
  
  • Present value
  • Discount factor
  • Net present value
  • Internal rate of return
  • Payback period
  • Profit/Investment ratio

Day 5:

• Risks and Uncertainties in the Oil and Gas Industry
  
  • Expected value
  • Decision tree analysis
  • Farm-out decision
  • Probability analysis
  • Sensitivity analysis
  • Probability distribution
  • Monte Carlo simulation