Advanced Petroleum Economics and Risk Analysis

Audience

The course is suitable for delegates of all technical and commercial disciplines from oil and gas companies, governments, banks, legal and accounting organizations.

Content

The primary aim of this course is to equip delegates with an understanding, both theoretical and practical, of advanced economic techniques around valuation metrics, M&A, fiscal design and risk quantification. It covers three main areas:

• Cashflow and corporate valuation
After a refresher of cashflow fundamentals the topic is expanded to cover the importance of both cashflow and accounting- based metrics in order to value assets for acquisitions/divestments. To this end the accounting fundamentals around P&L account, balance sheets and earnings are discussed, particularly where they interact with economics

• Fiscal Design
After a refresher of the fundamentals of tax/Royalty, Production sharing contracts and risk service contracts, we aim to provide the delegate with an in-depth understanding of the fiscal levers particularly those that are biddable or negotiated. The last day workshop is a team based exercise: A “negotiation scenario” is played out where the team has to select a suitable set of fiscal terms for the production sharing contract and argue its case

• Risking Techniques
The more advanced risking topics are discussed around sensitivity analysis, decision trees, Value of Information (VOI) and Monte Carlo simulation

Duration

4-day

Number of Participants

Maximum 20

Prerequisites

Economic fundamentals, Intermediate Excel

Software Used

None

Course Format

Classroom delivery with presentations, practical exercises and modelling workshop


Audience

The course is suitable for delegates of all technical and commercial disciplines from oil and gas companies, governments, banks, legal and accounting organizations.

Content

The primary aim of this course is to equip delegates with an understanding, both theoretical and practical, of advanced economic techniques around valuation metrics, M&A, fiscal design and risk quantification. It covers three main areas:

- Cashflow and corporate valuation: After a refresher of cashflow fundamentals the topic is expanded to cover the importance of both cashflow and accounting - based metrics in order to value assets for acquisitions/divestments. To this end the accounting fundamentals around P&L account, balance sheets and earnings are discussed, particularly where they interact with economics

- Fiscal Design: After a refresher of the fundamentals of tax/Royalty, Production sharing contracts and risk service contracts, we aim to provide the delegate with an in-depth understanding of the fiscal levers particularly those that are biddable or negotiated. The last day workshop is a team based exercise: A negotiation scenario is played out where the team has to select a suitable set of fiscal terms for the production sharing contract and argue its case

- Risking Techniques: The more advanced risking topics are discussed around sensitivity analysis, decision trees, Value of Information (VOI) and Monte Carlo simulation

Learning Objectives

Duration

4 Days

Number of Participants

20

Prerequisites

Economic fundamental, Intermediate Excel

Software Used

Excel

Course Format

Classroom delivery with presentations, practical exercises and modelling workshop

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CGG GeoTraining offers the most comprehensive industry training based on years of practical experience acquired by our personnel.

Our proprietary courses are fully customizable and can be offered at a time and location convenient to you. Please request a course for more information.