Course Length: 5 Days
Course Course Venue:
Course Description:
Market conditions and the resulting increased pressure to competitively deliver projects safely, on time, within budget, and to specifications, vis-à-vis the desire for success have necessitated the need to not only plan investment work but also evaluate and make well informed decisions, using the right people, processes and tools.
Using a mix of empirical notes, workflows and real-life case studies related to the Oil and Gas industry, this course will address investment planning, evaluation and decision-making issues in a succinct, yet logical manner.
By the end of this course, participants will be able to:
• Carry out an overview of oil and gas operation
• Understand field development phases
• Assess Pre-development workflow
• Walk-through capital development cost input for economic evaluation
• Learn petroleum economic principles & fiscal systems Understand uncertainty, risk and decision analyses
• Work scenarios, problems, case studies
Who is this Training Course for?
This course is suitable to a wide range of professionals, including:
• Project Directors
• Project Engineers
• Geoscientists
• Project Services/Controls Managers
• Risk Management Engineers
• Other Project Management Team members
• Operations Managers, Superintendents and Production Engineers
How will this Training Course be Presented?
This course will be highly interactive. Following an introductory session, short input sessions will be provided followed by participants being given the opportunity to practice the lessons
learned in the preceding topic using case studies. It’ll be in a CONCEPT – CASE STUDY –
REFLECTIONS format.
Illustrations of evaluation and decision making, via workflows, from the real world will be provided and participants will be encouraged to contribute examples and illustrations from their own experiences.
The Course Content
Day One: Fundamental Elements
• Introductions
• Pre-course check-in
• Offshore oil and gas
• Field development planning Field development uncertainties What is an evaluation?
• What is an investment decision? Evaluation steps
• Net present value
• Field development phases o Overview o Activities
• Pre-development assessment o The workflow o Functions o Scheduling and cost estimating
o Report contents o Workshops, 2 x 10mins
• Intro to Capital development cost modeling
o Key elements
o Demo
• Reflections
• Open forum & Day 1 Recap
Day Two: Economic Principles, Fiscal Systems, Uncertainty, Risks & Range Analysis, and Techniques
· Who is an Economist?
· Petroleum economic principles
· Concepts & Cash flow derivation
o Economic indicators
o Value creation
· Petroleum fiscal systems
· Royalty/Tax
· Production sharing contract
· Service contracts
· Uncertainty analysis
· Primary uncertainties over the field life
· Techniques:
§ Sensitivity analysis
§ Scenario analysis
§ Expected value
§ Decision trees
§ Monte Carlo simulation
§ Techniques’ comparison
§ Risk & Range Analysis
§ Reflections/Open forum & Day 2 Recap
Day Three: Decision Analysis and Framing Tools
• Decision analysis
• What is it?
• How?
• Framing tools
• Summing, averaging and determining economic indicators for
• consolidated projects
• Portfolio optimization, ranking and selection
• Additional case studies & example problems
• Reflections/Open forum & Day 3 Recap
Day Four: Modeling and Case Studies
• Investment Cost modeling
• Economic Evaluation Tool demo Case studies
• Field Visit/Tour
Day Five: Case Studies & Wrap Up
• Reflections/Open forum & Day 4 Recap
• Capital development cost input modeling
• Economic Evaluation Tool usage
• Case studies
• Self-assessment - What have I learned & how will I use it in my work?
• Post-course check-in
• Course evaluation Wrap up