Code Date City Venue Fees
RM036 15 - 26 Jul 2019 London - UK TBA $11,900 Register
TBA* = To be Announced   |  All fees are exclusive of VAT
Home » Seminars » Risk Management » The 10-Day Advanced Project Economics & Risk Management for Oil & Gas Professionals

Seminar Outline

The training seminar is split into two modules:

MODULE I - Tools & Techniques for Managing Risk & Uncertainty

MODULE II - Advanced Oil & Gas Project Economics, Risk & Decision Analysis

Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a two-week training course.

 

Module I: Tools & Techniques for Managing Risk & Uncertainty

Day 1

Fundamentals of Decision Analysis

  • What is Project Management Decision Analysis?
  • The Purpose of the Project Business Case
  • The Need for Systematic PM Decision Analysis
  • The Importance of Risk Management for Decisions
  • Risk and Uncertainty on Projects
  • Option Analysis
  • Identifying Key Decision-making Factors

Measures of Project Profitability

  • Fundamental Tools of Engineering Economics
  • Time Value of Money
  • Appraisal Methods - Discounted Cash Flow Projections
  • Time Equivalence

Day 2

Cash-Flow Modelling and Project Decision Analysis

  • Financial Modelling and Project Evaluation
  • Understanding the Project Context to Assist in Decision-making
  • Determine Stakeholders and their Level of Influence
  • Capture Requirements
  • Determine Scope of Work
  • Capital Expenditures (CAPEX)
  • Operating Expenditures (OPEX)

Rate of Return

  • Rate of Return Computations (IRR)
  • Determining the Internal Rate of Return (IRR)
  • The Risk of Not Understanding IRR

Day 3

The Cost of Capital

  • Estimating the Cost of Capital for a Project
  • Benefit-Cost Ratio (BCR)
  • Costs, Benefits, and Non-benefits
  • Identify Risks

Risk Modelling in Practice

  • Forecasting Risk Impacts & Probabilities
  • Opportunity Costs and Sunk Costs
  • Determining the Risk Priorities
  • Assessing the Terminal (Salvage) Value of a Project
  • The Need for the Company Cash Flow

DAY 4

Decision Analysis: Expected Value Concept

  • Overview of the Risk Management Process
  • Risk Tolerance and Risk Prioritization
  • Risk Quantification and Expected Monetary Value (EMV) Concepts
  • Decisions under Certainty, Risk and Uncertainty
  • Basic Probability Concepts
  • Probability Applications: Program Evaluation Review Technique (PERT), Monte Carlo Analysis
  • Assessing the Probability of Completing a Project within the Desired Budget
  • Contingency

DAY 5

Decision Analysis: Decision Trees, Scenario, Sensitivity Analysis and Simulation

  • Decision Tree Analysis
  • Scenario Analysis
  • Sensitivity Analysis and Tornado Diagram
  • Integrated Practical Application
  • Presenting Decision Analysis

 

Module II: Advanced Oil & Gas Project Economics, Risk & Decision Analysis

DAY 6

Development Economics

  • A Brief History of Energy Usage
  • Principles of Development Economics
  • Understanding of Economic terms
  • Inflation and its Impact on Nominal & Real CashFlows
  • Project Financing

DAY 7

Uncertainty in Investments

  • Handling Uncertainty in Capital Projects
  • Understanding Probability Concepts
  • The Expected Value Concept: Features and Pitfalls
    • Expected Monetary Value (EMV)
    • Expected Profitability Index (EPI)
    • Expected Opportunity Loss (EOL)

DAY 8

Risks and Uncertainties

  • Risk & Uncertainty
  • Risk Eversion and Risk Premium
  • Exploration Project Threats and Opportunities
  • Economic Decision Criteria
  • Decision Tree Analysis
  • Probability Distribution
  • Case Study: Monte Carlo Simulation

DAY 9

Setting-up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • CashFlow Analysis
    • Sensitivity Analysis Calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Class Exercises: Setting-up an Oil Field Project

DAY 10

Practical Use of the @Risk add-on: Oil Field Development Model

  • Developing an Integrated Economic Model of an Oil Field Development
  • Developing and using an @Risk Model Analysis
  • Project Sensitivity Analysis utilizing data from @Risk Model
  • Training Seminar Final Review and Close

Accreditation

  • Quality Logo

In Association With

Oxford Management Centre

Oxford Management Centre

A GLOMACS - Oxford Management Centre collaboration aimed at providing the best training services and benefits to our valued clients

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PetroKnowledge

PetroKnowledge

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Home » Seminars » Risk Management » The 10-Day Advanced Project Economics & Risk Management for Oil & Gas Professionals

VAT Announcement: The Government of UAE have introduced Value Added Tax (VAT) on goods and services from 01-January-2018. In compliance with the legislation issued by the UAE Government, we will be applying a 5% VAT on the fees for all our programs and services offered from January 2018 as applicable and stipulated in the FTA circulars.

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