A Project Management Institute, Inc. (PMI)®Registered Training Course
Petroleum Project Economics & Risk Analysis
Techniques for Opportunity Evaluation and
Assessment of Risk and Uncertainty
Course Overview
Exploration and Production companies often must evaluate their potential E&P investment using proper present value analysis of expected future cashflows. From the projected cashflows and required investments, the annual rate of return and other project economic indicators can be extracted to evaluate the significance of company investment.
This Petroleum Project Economics & Risk Analysis training course provides practical guidance in the application of the techniques of the economic analysis currently used in the Oil & Gas industry. When executing a petroleum related project, one should be able to choose the best alternative from economic point of view as well as to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cashflow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic indicators, risk and uncertainty, different economic structures such as tax regimes and production sharing contracts, enhances the quality and the value of economic analysis.
This GLOMACS training course will highlight:
- Familiarization with the application techniques of the economics analysis in the Oil & Gas industry
- Petroleum related project evaluation methods
- Screening of the petroleum projects based on evaluating the investment opportunities
- Identifying the risks and uncertainties of the project
- Application of risk management methods in mitigating the identified risks of the project
Training Outline
DAY 1: Cashflow Analysis
- Familiarization with Economic terms
- Setting up Cashflow Calculation
- Depreciation Methods
- Loss Carry Forwards
- Inflation
- Nominal & Real Cashflow
- Sunk Costs
- Project Financing
DAY 2: Economic Indicators
- Economic Indicators Definitions
- Present Value Concept
- Discount Factor
- Net Present Value
- Internal Rate of Return
- Effect of Project Delay
- Payback Period
- Profit / Investment Ratio
- Incremental Projects
DAY 3: Risks and Uncertainties
- Risk & Uncertainty
- Expected Value Concept
- Decision Tree Analysis
- Farm-out Decision
- Probability Analysis
- Sensitivity Analysis
- Probability Distribution
- Monte Carlo Simulation
DAY 4: Setting up Spreadsheet Calculation
- Introduction to Spreadsheet Calculation
- Simple Cashflow using Excel
- NPV Calculations
- Application of Economic Indicators
- Class Discussion
DAY 5: Setting up Oil Field Development Model
- Setting up an Integrated Economic Model of a Typical Oil Field Development
- Project Sensitivity Analysis for the Selected Model
- Introduction to Russell Field Model
- Final Remarks
Certificates
- On successful completion of this training course, GLOMACS Certificate with eligible Continuing Professional Education credits (CPE) from National Registry of CPE Sponsor and Professional Development Units (PDUs) / Contact Hours from Project Management Institute (PMI®), will be awarded to the delegates
Accreditation
GLOMACS is proud to be an Authorized Training Partner (ATP No. 2759) with PMI®. As an ATP, GLOMACS is authorized to issue applicable Professional Development Units (PDUs) and Educational Contact Hours to participants of any of its PMI® approved training courses for PMI® Certification and Re-Certification.
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
Providers and Associations
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
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