ABOUT COURSE

COURSE OBJECTIVE

This course provides participants with the skills and understanding required to evaluate exploration and production projects from a technical and economical perspective. Main topics to study are: reserves definitions and classifications, economic evaluation fundamentals, production forecast, estimation and valuation of reserves, international petroleum economics, investments analysis and selection, risk and uncertainty analysis. Practical examples of project evaluation cases will be discussed to illustrate the process.

STUDENT PROFILE

This course is designed for experienced engineers, geoscientists, and other physical scientists who have an interest in technical and economical evaluation of exploration and production projects for the oil and gas industry. Previous experience on topics is not necessary.

COURSE CONTENT

1. RESERVES DEFINITIONS AND CLASSIFICATIONS

• PRMS
• U.S. Securities & Exchange Commission

2. TIME VALUE OF MONEY

• Present value of future cash flow
• Future value of future cash flow

3. BEFORE-TAX INVESTMENT EVALUATION

• Forecasting production
• Cash flow analysis, discounted and undiscounted

4. AFTER-TAX INVESTMENT EVALUATION

• Depreciation
• Amortization and depletion
• Intangible drilling costs

5. DETERMINISTIC RESERVES ESTIMATION PROCEDURES

6. VALUATION OF RESERVES

7. INTERNATIONAL PETROLEUM ECONOMICS

• Concessionary system
• Production sharing system
• Service contracts

8. INVESTMENT SELECTION

• Investment evaluation yardsticks
• Application of yardsticks to mutually exclusive and non-mutually exclusive investment opportunities
• Selection of optimal investment portfolio

9. DESCRIPTIVE STATISTICS

10. BASIC PROBABILITY

11. RISK AND UNCERTAINTY

• Expected value
• Decision trees
• Descriptive Monte Carlo simulation