DAY 1
Oil & gas asset discounted net cash flow
Introduction
- Objectives of undertaking an economic analysis
- What makes the oil and gas industry different?
Discounted cashflow
- The time value of money, compounding & discounting
- Discount rate, discount factor & discount method
- The cost of capital and the hurdle discount rate
Capital budgeting techniques
- Undiscounted methods (PIR, payback, exposure)
- Discounted methods (e.g. NPV, IRR, DPIR)
- Valuing an asset, making development & investment decisions
Oil & gas asset net cashflow – project components
- Reserves, production and sales profiles
- Tariff income
- Capital, operating, transportation & abandonment Costs
- Working interests, carried interests, ORR’s & NPI’s
Day 2
Oil & gas asset net cashflow – economic components
- Inflation, cost escalation, real versus nominal cash flows
- Oil and gas prices
- Interest rates & exchange rates
Oil & gas asset net cashflow - taxation & government take ccomponents
- Production sharing contracts
- Royalty & taxation systems
- Risk service & other systems
- Calculating royalties, taxes, cost recovery and profit oil splits
Oil & gas asset net cashflow determination
- Oil company (investor) net cash flow
- State oil company net cash flow
- Government net cash flow
Upstream economics workshop: the taxation case study
- Introduction to the European gas field, taxation based case study
- Establishing the economic model framework, structure & calculation flows
- Understanding the taxation structure & algorithms
- Determining the field, economic & fiscal data and building the input decks
- Step by step construction and audit of the taxation model
- Running the economic cases & evaluating the results
- Summary and closing remarks
Day 3
Upstream economics workshop: the PSC case study
- Introduction to the West African oil discovery, PSC based case study
- Establishing the economic model framework, structure & calculation flows
- Understanding the PSC fiscal structure & algorithms
- Determining the field, economic & fiscal data and building the input decks
- Step by step construction and audit of the PSC model
- Running the economic cases & evaluating the results
- Summary and closing remarks
Day 4
Advanced petroleum economic techniques
- Aggregation and consolidation analysis
- Ring-fences
- Incremental analysis
Discrete economic ssolutions
- Sensitivity analysis
- Spider & Tornado diagrams
Probabilistic economic solutions
- Expected value and decision tree analysis
- Farm-In and Farm-Out analysis
- Exploration prospect portfolio management
Continuous economic solutions
- Risk versus uncertainty
- Distributions and Central Limit Theory
- Monte Carlo simulation
Exploration prospect valuation workshop
- Calculation of the prospect minimum economic reserve
- Establishment of the prospect commercial reserves distribution
- Construction of the Risk Tree of all outcomes
- Determination of the geological and commercial chance of success factors
- Calculation of the success case expected value and the prospect EMV
- Drill or no-drill decision?
Summary & conclusions
26-28 Nov 2012 (London, UK)
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25-27 Jun 2012 (London, UK)
17-19 Dec 2012 (London, UK)
This Petroleum Company Performance Management training course has been designed to offer personnel from corporations and financial institutions a full complement of tools to use most effectively in developing and analysing the corporate performance measures for oil and gas companies.
20-24 Aug 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. You will gain an appreciation of industry dynamics and the key issues affecting its development and future. This course will provide a thorough foundation for understanding the changing industry dynamics.
17-19 Oct 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. Under the guidance of our expert course faculty, participants will gain an appreciation of industry dynamics and the key issues affecting its development and future.
10-12 Jul 2012 (London, UK)
This 3-day Euromoney Energy Training course will give you an in-depth understanding of the problems and solutions in unit formation, negotiation of participation factors and operating agreements. The role of governmental agencies in consent and oversight will also be discussed.
10-12 Oct 2012 (Singapore, Singapore)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
17-20 Dec 2012 (Dubai, United Arab Emirates)
This 4 day International Oil & Gas Contracts course is specifically designed for professionals involved internationally in the oil and gas industry, it offers a unique opportunity to rapidly increase your understanding of the legal issues involved in various UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts.
23-25 May 2012 (Rio de Janeiro, Brazil)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
29-31 Oct 2012 (London, UK)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
11-13 Sep 2012 (London, UK)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
22-24 Oct 2012 (London, UK)
This 3 day Upstream Oil and Gas Acquisition and Divestment course will explain how upstream oil and gas assets are traded from both buyer and seller perspectives.
The course includes references to failed and successful deals and provides valuable insight into how to conclude successful transactions.
The principles of Licensing Rounds, Farm In and Farm Out processes are explored as well as key industry processes underpinning these transactions. It includes assessment of case studies, and an element of group work based on an “acquisition and divestment opportunity” where buyers and sellers meet to consider an opportunity and to “close a deal”.
12-15 Nov 2012 (Singapore, Singapore)
The Energy Risk Management: Mastering Volatile and Complex Markets course is a comprehensive and systematic introduction to risk management for complex energy markets. The course will detail why and how risks in energy – particularly gas and electricity - are more acute than in other traded market sectors, and how classic risk management techniques must be adapted and extended to meet these demanding conditions.
1-5 Oct 2012 (Singapore, Singapore)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills
16-19 Jul 2012 (London, UK)
People coming to energy risk management for the first time are taken aback by the extreme market conditions that are commonplace in the complex markets of oil, coal, and above all, gas and electricity. Levels of volatility and basis risk are unprecedented: and there are additional risks that are unique to energy. This course shows delegates how to deploy traditional risk management tools in the challenging context of volatile energy markets, and to extend these techniques to master the unique risk characteristics of gas and electricity.
19-21 Sep 2012 (London, UK)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
21-23 Nov 2012 (Lagos, Nigeria)
Attend this practical and interactive three-day training course and enhance your knowledge in the following key areas: The fundamental economic principles underpinning production sharing contracts (PSC’s); The history and evolution of production sharing contracts (PSC’s); The PSC structure, content and flowchart; Cost recovery, profile share, bonuses, sliding scales; Royalty and Taxation; Ringfencing; Key economic issues in PSC negotiations and bidding, featuring: Nigeria PSC economic modelling workshop, The economic impact of the Petroleum Industry Bill (PIB) and Global case studies
21-23 May 2012 (Hong Kong, Hong Kong)
A 3-day intensive course exploring how upstream oil and gas assets are traded from both buyer and seller perspectives. The course will include references to failed and successful deals and provide valuable insight into how to conclude successful transactions.
11-14 Jun 2012 (London, UK)
For operator drilling contractor and service company personnel that desire a specialised familiarisation, understanding and comprehension of Deepwater Drilling Operations, equipment, processes, systems and activities.
25-29 Jun 2012 (London, UK)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills.
16-19 Jul 2012 (London, UK)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
20-23 May 2012 (Dubai, United Arab Emirates)
This 4-day training course will enhance your understanding of the legal issues involved in production sharing contracts and to improve your negotiation techniques.
5-8 Nov 2012 (Hong Kong, Hong Kong)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
20-22 Aug 2012 (Hong Kong, Hong Kong)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
8-10 Oct 2012 (Singapore, Singapore)
This Euromoney Energy Training course examines the roles of benchmarking and performance monitoring through key performance indicators and the analysis of business models.
25-29 Jun 2012 (London, UK)
Featuring 3–individually bookable modules:
- Upstream development & production
- Mid-stream pipelines & LNG projects
- Downstream oil refineries & petrochemical plants
- Including: 16 key industry case studies to improve your understanding
24-27 Sep 2012 (London, UK)
22-31 Oct 2012 (Hong Kong, Hong Kong)
20-23 Nov 2012 (Singapore, Singapore)
For operator drilling contractor and service company personnel that desire a specialised familiarisation, understanding and comprehension of Deepwater Drilling Operations, equipment, processes, systems and activities.
12-14 Nov 2012 (Hong Kong, Hong Kong)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
12-15 Nov 2012 (Singapore, Singapore)
14-16 Nov 2012 (Almaty, Kazakhstan)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) and the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
17-21 Sep 2012 (London, UK)
This 5-day course is designed to introduce both lawyers and nonlawyers alike to the theories and practice of international commercial and investment arbitration in the oil & gas industry.