Introduction

The Advanced Oil & Gas Project Economics, Risk & Decision Analysis training program is designed to equip professionals in the energy sector with the essential knowledge and skills to navigate the complexities of decision-making in oil and gas projects. In an industry characterized by significant capital investments, high levels of risk, and dynamic market conditions, mastering advanced economics, risk assessment, and decision analysis is critical for success. This program provides participants with a deep understanding of these key concepts and their practical application in the oil and gas industry.

Objectives

By the end of this 5-day training program, participants will:

• Understand Oil & Gas Industry Dynamics: Gain insights into the unique characteristics and dynamics of the oil and gas industry, including its project lifecycle and critical decision points.
• Master Financial Analysis: Learn to apply financial analysis techniques such as Discounted Cash Flow (DCF), Net Present Value (NPV), and Internal Rate of Return (IRR) to evaluate the economic viability of oil and gas projects.
• Navigate Uncertainty and Risk: Develop proficiency in identifying, quantifying, and mitigating risks in oil and gas projects through Monte Carlo simulation, decision trees, and sensitivity analysis.
• Optimize Decision-Making: Explore advanced decision analysis techniques, including Multi-Criteria Decision Analysis (MCDA) and Value of Information (VOI) analysis, to make informed and robust decisions.
• Evaluate Financial Aspects: Understand the financial intricacies of oil and gas projects, including capital structure, financing options, taxation, regulatory considerations, and risk-adjusted metrics.
• Apply Knowledge to Real-world Scenarios: Analyze real-world case studies, learn from industry experts, and engage in discussions to apply acquired knowledge to practical situations.

Target Audience

This training program is ideal for professionals working within or aspiring to work within the oil and gas industry, including:

• Project Managers
• Financial Analysts
• Investment Analysts
• Risk Analysts
• Engineers
• Geologists
• Environmental Specialists
• Government and Regulatory Personnel
• Energy Consultants
• Anyone involved in oil and gas project planning, evaluation, or decision-making

Program Outline

Day 1: Introduction to Project Economics and Decision Analysis in Oil & Gas

• Overview of the Oil & Gas Industry
• Project Lifecycle and Decision Points
• Time Value of Money (TVM) and Discounted Cash Flow (DCF) Analysis
• Net Present Value (NPV) and Internal Rate of Return (IRR)
• Sensitivity Analysis and Scenario Analysis
• Real Options Analysis

Day 2: Risk Analysis in Oil & Gas Projects

• Understanding Risk and Uncertainty
• Risk Management Framework
• Monte Carlo Simulation
• Risk Mitigation Strategies
• Decision Trees and Decision Analysis
• Incorporating Uncertainty in Decision Analysis

Day 3: Advanced Decision Analysis Techniques

• Multi-Criteria Decision Analysis (MCDA)
• Value of Information (VOI) Analysis
• Decision Support Tools and Software
• Economic Modeling in Excel
• Advanced Financial Metrics (PI, DPI, TVPI)
• Risk-adjusted Metrics (RAROC, CFaR)

Day 4: Financial Aspects of Oil & Gas Projects

• Capital Structure and Financing Options
• Taxation and Fiscal Regimes in Oil & Gas
• Regulatory and Environmental Considerations
• Case Studies in Project Finance
• Industry Best Practices

Day 5: Practical Applications and Case Studies

• Presentations of Real-world Case Studies
• Industry Expert Panel Discussion
• Q&A Session