Course Overview
The petroleum industry is extremely vast and critical to the success of a nation, and thus, organisations in this industry need to ensure that their practices are legal, ethical and competitive. Given this importance, analysis of the financial performance of these organisations becomes the primary objective to ensure eventual success.
These organisations are required to build various financial models for various projects, and the possible risks are expected to be considered part of it.
What is petroleum economics? Petroleum economics is one of the strongest and most influential aspects in the world economy, and thus, understanding petroleum economics is key to becoming a successful professional in the oil and gas industry. It involves the application of economic analyses at various stages of a petroleum project.
This Zoe training course will empower you with superior knowledge of petroleum project economics and the risk analyses forming part of this activity.
Since oil and gas organisations need to keep a close watch on financial leakages and fixtures, this course will help you not only understand financial analyses undertaken for the benefit of the future course of the project but also drive and/or perform your own analyses to check and determine various aspects of a project that will be important for the overall success of the project. The content of this course will help build your competence to handle complex projects in this industry.
Course Objectives
The primary objective of this Petroleum Economics, Project Evaluation, Risk and Decision Analysis Masterclass training course is to empower professionals with—
- greater knowledge and a more detailed understanding of petroleum project economics
- the ability and capabilities to independently drive and perform risk analyses and successfully address these in due course of the project
- the skill and confidence to assume higher roles and responsibilities to track the financial performance of a project, thus building credibility and inviting more opportunities for career growth and progression
- the knowledge and experience to coach and mentor other professionals on petroleum project economics and related risk analyses
- the knowledge and capabilities to apply advanced techniques and methods as well as different models to analyse the financial performance of a project
- the required foresight and maturity to predict possible risks and challenges and address them as part of the early plan
- the ability and knowhow to provide financial advice to senior members and foster growth and development of the organisation
Training Methodology
Courses at Zoe Talent Solutions are delivered while laying great importance to the relevance of the training content to the respective training audience. It is for this reason that courses are thoroughly reviewed before the commencement of a training session. A highly experienced professional from the relevant domain delivers the training using audio-visual presentations.
Trainee participation is ensured through activities and projects, as well as role-plays and active case study discussions. Experience sharing by trainees also helps present real challenges and encourages problem-solving discussions, moderated by the trainer.
The above format of training is unique to Zoe Talent Solutions and does not follow any format adopted outside. The model is called the Do–Review–Learn–Apply Model.
Organisational Benefits
By professionals enrolling for this Petroleum Economics, Project Evaluation, Risk and Decision Analysis Masterclass training course, organisations will derive the following benefits:
- More regular and accurate petroleum project economic analyses by trained and experienced professionals
- Better and more accurate risk analyses and mitigation to prevent financial losses to the organisation
- Application of modern and advanced financial models and techniques to derive the most accurate results of the economic analyses
- Skill enhancement of other employees in project economics by those professionals undergoing this course
- Increased credibility because of better managed and more accurately calculated risks
- Organisational growth and development as a result of increased credibility, better-managed risks, greater investments and financial stability
- Adherence to international standards of operations and delivery, as audited by the trained and experienced professionals undergoing this course
- Ability and potential to sustain the strict competition to survive in the vast industry
Personal Benefits
Professionals enrolling for this Petroleum Economics, Project Evaluation, Risk and Decision Analysis Masterclass training course will derive the following benefits:
- Detailed knowledge of petroleum project economics and the related risk analyses
- Enhanced perspective, maturity and foresight to predict all possible risks and address these to prevent them from hampering the progress of a project
- Increased understanding and knowledge of different advanced financial models and techniques to analyse financial stability and prospects of a project
- A sense of pride and fulfilment contributing to project stability as well as organisational financial stability, ultimately leading to organisational growth and development
- Better knowledge and confidence to coach and mentor other professionals on petroleum project economics and risk analysis
- Increased confidence, experience and skill to independently undertake and successfully complete petroleum projects, without any financial leakage, thereby contributing to organisational growth and development
- Greater confidence and understanding to conduct regular checks on existing systems and processes to ensure that financial leakage is minimised and processes and systems are in adherence with expected ethical and legal standards
- Enhanced skill set and capabilities to assume higher roles and responsibilities related to petroleum project economics in any organisation, thus increasing scope for career growth and progression
Who Should Attend?
- Senior management of an organisation who need to understand the importance of petroleum project economic and risk analyses
- Potential investors who should be able to understand and check the economic status of a project before investing further or for making any investment-related decisions
- Managers and supervisors as well as members of teams responsible for conducting the financial analyses
- Financial advisors and managers who provide financial advice to the senior management of an organisation
- Contract specialists responsible for preparing contracts covering all terms and conditions
- Asset managers managing the utilisation, upkeep and record of fixed assets of the organisation
- External economics and auditors responsible for checking financial statements of an organisation and confirming adherence to all norms and procedures
- Any other professional interested in knowing more about petroleum project economics and risk analysis
Course Outline
The Petroleum Economics, Project Evaluation, Risk and Decision Analysis Masterclass covers the following areas important to understanding petroleum project economics and risk analysis:
Module 1 – Financial Modelling in the Oil and Gas Industry
- Financial statements
- Income statement
- Balance sheet
- Cash flow statement
Module 2 – Overview of Cash Flow Analysis
- Definition
- Objectives
- Methods of cash flow analysis
Module 3 – Three Types of Cash Flows
- Operations
- Investing
- Financing
Module 4 – Advantages of Cash Flow Analysis
- Maintain adequate cash reserves
- Manage credit better
- Help adjustments
- Avoid production interruptions
- Understand future plans and outcomes
- Keep track of overdue payments
- Manage surplus cash
Module 5 – Challenges in Cash Flow Analysis
- The time horizon for analysis of cash flows
- Overstatement of profitability in cash flow statements
- Understatement of profitability in cash flow statements
- Time value of money
Module 6 – Most Common Risks Faced By Petroleum Companies
- Political risks
- Geological risks
- Price risks
- Supply and demand risks
- Cost risks
Module 7 – Types of Economic Indicators
- Present value
- Discount factor
- Net present value
- Internal rate of return
- Payback period
- Profit/Investment ratio
Module 8 – Risks and Uncertainties in the Oil and Gas Industry
- Expected value
- Decision tree analysis
- Farm-out decision
- Probability analysis
- Sensitivity analysis
- Probability distribution
- Monte Carlo simulation
