Oil and Gas
Oil and Gas | Commercial and Risk Analysis
Oil & Gas Economic Evaluation
Format and Duration:
5 days
10 sessions
This course will focus on the valuation of Oil and Gas projects based on industry standard methodology. During this course, participants will learn how companies and governments analyse project returns and identify the main value drivers. The link between technical and commercial input assumptions and value will be the main focus of the course. This will include the classification and categorization of volumes into Resources and Reserves using the Petroleum Resources Management System (PRMS). An introduction to petroleum fiscal systems and Government Take will be given. The course will focus on the structure of Production Sharing Agreements and the variations in contract terms. Participants will be introduced to the structure of such contracts via practical modelling exercises using Microsoft excel.
Schedule
Duration and Training Method
A classroom course comprising a combination of lectures and practical exercises to ensure participants learn and develop an understanding of the concepts covered.
Course Overview
Learning Outcomes
Participants will learn to:
- Understand the basics principles of petroleum economic analysis and know what input data and assumptions are needed to undertake an economic analysis.
- Appreciate the link between hydrocarbon volumes and economic value.
- Demonstrate an understanding of petroleum fiscal systems and how these link to project net cash flows.
- Understand the structure of the main types of fiscal contracts
- Appreciate the importance of government take and investment incentives
- Have a detailed understanding of the structure of Production Sharing Agreements
- Appreciate the drivers of value in such agreements and how to analyse project returns
Course Content
- Project vs. Company/State cashflows
- General framework of hydrocarbon fiscal systems
- Project development (development options, production forecasts, cost estimation and schedule)
- Project valuation (unrisked and risked valuation of oil and gas projects, NPV vs. EMV)
- Project cash flow analysis (calculation of future cash flows, cash flow metrics), incremental economics and sensitivity analysis
Instructors
Ed Jankowski
Background
Ed is Technical Director of the RPS consulting business with over 30 years of experience in the international oil and gas sector covering a wide range of business activities. During a long career within this sector, Ed has worked for both integrated major oil and gas companies as well as independents and latterly for a global technical/commercial consultancy. This broad exposure includes exploration, development and production activities (involving oil, gas, LNG and power generation). Ed has a strong technical background (PhD and BSc in Geophysics) coupled with detailed expertise in petroleum economics and commercial negotiations. He has a proven track record in strategic thinking and analysis leading to development of investment strategy.
Areas of expertise include:
• Evaluation of Reserves and Resources,
• Portfolio valuation,
• Risk analysis and strategic analysis.
• Broad industry exposure including exploration, development, production activities (involving oil, gas, LNG and power generation) as well as mergers and acquisitions
Ed is an Honorary Fellow of Aberdeen University where he teaches Petroleum Economics and Portfolio Valuation as part of the Oil and Gas Enterprise Management master’s program. He has a similar role at Imperial College in London.
Affiliations and Accreditation
FGS
SPE
Courses Taught
N495: Petroleum Fiscal Systems
N814: Petroleum Economics and Decision Analysis
N988: PRMS Reserves and Resource Assessment
R001: Oil and Gas Essentials
R604: Oil and Gas Reserves Classification, Resources and Petroleum Economics
Accreditation and Certification
Certificate: Certificate Issued Upon Completion
RPS is accredited by the International Association for Continuing Education and Training (IACET) and is authorized to issue the IACET CEU. We comply with the ANSI/IACET Standard, which is recognised internationally as a standard of excellence in instructional practices.
We issue a Certificate of Attendance which verifies the number of training hours attended. Our courses are generally accepted by most professional licensing boards/associations towards continuing education credits. Please check with your licensing board to determine if the courses and certificate of attendance meet their specific criteria.