PROGRAM DETAILS

Introduction

The course aims at

• Overview of the Oil & Gas Fiscal System
• Project Economics
  • Why petroleum economics is required to make investment decisions?
• Oil and gas exploration and production life cycle
  • Production
  • Defining costs in the upstream: OPEX, CAPEX
  • Costs: Acquisition, Exploration and Production Costs
  • Accounting for Depreciation, Depletion and Amortization
  • Enhanced oil recovery

Learning Objectives

• A basic understanding of economic concepts
• Reservoir rock and fluid properties
• Volumetric and material balance concepts
• Personal computer operation

 Training methodology

The seminar will use a range of interactive activities – group and individual exercises, case studies and discussions. There will also be formal inputs of theory and practical models. The programme is geared towards effective application of what has been learned in order to maximize the value of the seminar to both the individual delegate and his/her organization.

Program Content

Day 1:

• Introduction and Simple Economic Analysis
• Revenue
  • Oil
  • Gas
  • Estimating Production
  • Volumetric
  • Recovery Factors
  • Material Balance
  • Decline Curve Analysis
  • Type Curve Analysis
  • Simulation Results

 Day-2  Expenses

• Overhead
• Operating and Finding
• Costs Drilling and Completion Costs
• Risk Analysis and Chance Factor
• Tangible and Intangible Costs
• Depreciation
• Cost Depletion
• Expensing
• Production Tax
• Property Tax

Compounding/Discounting Methods
Net Profit

Day-3  Rate of Return

• Ownership
• Operating & Nonoperating Interests
• Farmouts
• Inflation

Total Economic Analysis – Final Problem
Workover Economics
.Variations in Compounding/Discounting Practices
International Agreements

• Accounting for Depreciation, Depletion and Amortization
• Indicators of Evaluation
  • Time value of money
  • NPV
  • Discounted Cash Flow
  • IRR
  • Payback Period
  • Profitability Index
• Expected Value Concepts
• Exercises 

Day-4  Oil reserves

• Oil production
• Supply / Demand
• Geo-politics
• Oil market crises – why

Day-5 

• MENA ?  Market
• GAS MARKET
• Challenges –
• Recommendations