Petroleum Exploration Economics and Evaluation

This course focuses on the financial and economic aspects of petroleum exploration, offering insights into project valuation, risk management, and investment decision-making. Participants will learn how to apply economic modeling, cost-benefit analysis, and risk analysis techniques to assess the viability and profitability of exploration projects.

Who Should Attend

Geoscientists and petroleum engineers involved in exploration projects.

Financial analysts and economists specializing in the energy sector.

Investment managers and decision-makers in oil and gas companies.

Government officials and policy makers in energy ministries and regulatory bodies.

Academics and students specializing in petroleum economics.

Objectives

Gain an understanding of economic principles and financial metrics relevant to petroleum exploration.

Develop skills in constructing and analyzing economic models for exploration projects.

Learn to assess and manage the financial risks associated with petroleum exploration.

Understand the impact of fiscal policies and market conditions on project economics.

Enhance decision-making capabilities through advanced economic evaluation techniques.

Course Outline

Fundamentals of Petroleum Economics

Overview of the petroleum exploration process and its economic implications.
Introduction to economic concepts used in petroleum exploration, such as NPV, IRR, and payback period.
Understanding the role of price forecasting and economic assumptions in project evaluations.
Exploration of different fiscal regimes and their impact on exploration economics.

Economic Modeling and Analysis

Techniques for building economic models tailored to exploration projects.
Analysis of exploration costs, including seismic, drilling, and completion expenses.
Methods for estimating reserves and production profiles in economic evaluations.
Case studies on the application of economic models in real-world exploration projects.

Risk Analysis and Management

Identifying and quantifying risks in petroleum exploration.
Techniques for incorporating risk and uncertainty into economic models.
Strategies for mitigating exploration risks through financial and operational adjustments.
Use of sensitivity and scenario analysis to understand potential outcomes of exploration projects.

Fiscal Regimes and Contractual Arrangements

Detailed examination of different types of contracts, including concession agreements, production sharing contracts, and service contracts.
Impact of fiscal terms on the economics of exploration projects.
Comparative analysis of global fiscal systems and their attractiveness to investors.
Negotiation strategies for favorable fiscal and contractual terms.

Decision Making in Petroleum Exploration

Tools for decision analysis in uncertain economic environments.
Integrating technical, financial, and strategic factors into exploration decision-making.
Application of decision trees and real options analysis in exploration investments.
Development of investment decision criteria based on economic evaluations.

Competencies

Economic evaluation and financial modeling

Risk assessment and management in exploration projects

Strategic decision-making and investment analysis

Understanding of global oil and gas economics and policies

Negotiation and communication skills in financial contexts

London

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