Upstream Petroleum Economics, Risk and Fiscal Analysis
This is an interactive three day course which provides a practical but thorough coverage of petroleum economics, risk analysis, and the fiscal regimes that govern the international petroleum industry. The course examines how the risks and rewards of petroleum exploration and development are shared between the investing companies and the host governments.
The course begins with a review of the fundamentals of project economics before applying those concepts to investment analysis. We will discuss how investment decisions are framed to facilitate effective project analysis and decision making. The unique risks for petroleum exploration decision making are reviewed and a methodology for exploration decision making will be developed.
The course then turns to the fiscal systems which are imposed on oil and gas projects. Participants will gain an understanding of the unique attributes of the natural resources industry which drives the complexity and variability of global fiscal systems. The key ‘families’ of fiscal systems will be reviewed from royalty/tax systems through production sharing contracts and service agreements.
A large part of the course will be spent doing hands on Excel based exercises where delegates will model a variety of fiscal systems from the Asian region to gain a true understanding of the structure and dynamics of those systems. The course seeks an appropriate balance between theory and practice that will leave participants with a well grounded understanding of fiscal systems and petroleum project analysis.
Benefits of Attending this Workshop
By attending this course, participants will be able to:
Consolidate your understanding of financial evaluation principles and concepts such as Net Present Value and Internal rate of Return
Review the key risk factors which put value creation at risk in the petroleum industry, and how to manage those risks
Learn the key differences between royalty/tax systems and productions sharing systems in the oil and gas industry
Consider the concept of economic rent
Understand why natural resource industries have unique fiscal systems
Acquire real experience in modelling oil and gas projects and the different fiscal regimes
Gain a thorough understanding of petroleum project investment decision making and how to frame investment decisions for effective analysis
Understand the objectives of governments in setting fiscal terms and the trade offs required to attract investment
Who Should Attend
This workshop will appeal to any professional who has a need for effective petroleum investment decision making skills. It will have application for all who work in the petroleum industry including but not limited to: