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Basic Petroleum Economics (PBM14)

  • 16-18 August 20173 daysVienna, AustriaCourse Fee: 2650 EUR + VAT
    Computer Fee: 200 EUR + VAT

Description

This introduction to petroleum economics is an engaging and highly motivating course that allows participants to grasp the fundamentals of how an upstream organisation works in financial terms and what is needed to become a successful enterprise.

Course Level: Basic
Instructor: Bernhard Schmidt or Siegfried Gugu

Designed for you, if you are...

  • A professional working in the oil & gas industry with an interest in business and economic affairs but with limited experience of financial matters
  • An engineer involved in project evaluations
  • Working in the finance department with limited exposure to petroleum economics

How we build your confidence

You will be guided through the basics of financial statements, the 'story behind the numbers', key performance measures and their linkage to corporate strategy, financial valuation techniques (free cash flow analysis, NPV) and eventually financial success.
Concepts such as discounting cash flows, NPV, cost of capital and decision trees will be discussed in a very practical and refreshing way that allows the participants to take away some 'lessons for life' in terms of understanding the fundamental economic principles.

The benefits from attending

By the end of the course you will feel confident in your understanding of:

  • The value chain from reservoir to market in financial terms and be able to make your own project evaluation with NPV, ROI, IRR and other project metrics
  • The basics of applied corporate finance principles for E&P professionals
  • The bigger picture, how your actions today fit into company strategy in the long run

Topics

  • Basic concept of financial analysis
  • Cash flow and income components
  • Value flow from reservoir to market in net cash flow terms
  • Depreciation, depletion and amortisation
  • Project yardsticks and rates of return
  • Discount rates and hurdle rates
  • Cost of capital and funding criteria
  • Petroleum reserves categorisation and valuation
  • Capital budgeting techniques
  • Oil price and market estimation
  • Upstream contracts and fiscal terms
  • Risk analysis and project reviews
  • Decision trees and estimation of uncertainties
  • Financial statement analysis

Customer Feedback

"Tutor has extensive industry experience, real life examples" - Petrophysicist at E.ON E&P Norge
"The course is very comprehensive in regard to financial information and project managing." - S&L Manager at NIS Petrol


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