Petroleum Project Economics

  • Category
    Oil & Gas Business Performance
  • Course Fee

Course Content

Course Information

  • Next Start Date:
  • Duration: 3 Days
  • Course Fee : N350,000
  • Seating Capacity: 15
  • Venue: Abuja
  • City: Abuja
  • Upcoming Dates:

Course Description

The E&P industry is an extractive business and the two key characteristics are high-risk and capital intensity. Against this backdrop, the primary goals of E&P firms are to maximize the present value of long run profits and to enhance shareholder value. 

The Petroleum Economics course takes a look at the basic drivers of profitability in an E&P firm and how to maximise these. Investment cash flows depend mainly on the operating fiscal regime and government regulatory framework. At the end of the programme, participants will have an appreciation of the factors that determine the economic attractiveness of petroleum ventures and operations and have an understanding of risk and uncertainties around Oil & Gas ventures. The application of these principles is a necessary requirement for the proper allocation of limited resources and the continuing investment required to replace depleted petroleum reserves. 

Course Outline

Overview of the Oil & Gas Industry

  • The Search for Hydrocarbons
  • Hydrocarbons: What are they?
  • Origin of Hydrocarbons
  • Hydrocarbon Habitats
  • Migration & Trapping
  • Requirements for Hydrocarbon Accumulation
  • Drilling for hydrocarbons
  • Hydrocarbon Development Cycle
  • Natural Gas

E&P Business Environment

  • Oil & Gas in the context of the Energy Mix
  • World Energy Outlook
  • Petroleum Contracts and Fiscal Systems
  • General Economics Principles and Definitions

Project Economics (Deterministic)

  • Classification of Money
  • Cost of Capital
  • Economic Evaluation model
  • Project Cash-flow analysis

Project Economics (Probabilistic)

  • Risk & Uncertainty
  • Decision-Making under Uncertainty
  • Exploration Economics
  • Risk Management

Target Attendees 

Executive and management of oil & gas companies, prospective investors in the E&P business, capital market players, venture capitalists, corporate bankers, government officials (executive & legislative), national oil company executives, indigenous oil & gas company executives, financial and insurance house executives.

Course Facilitator:

Engr. Don Boham, B.Sc (Petroleum Engineering), MBA (Strategic Management). Former General Manager, Business Value & Relations, Shell EP Africa.