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Petroleum Project Economics & Risk Analysis

Petroleum Project Economics & Risk Analysis

1 Weeks
Professional Level
Certificate Included
Course Content

Available Events

Available Events
CityDatePriceStatus
LisbonPortugal
September 20, 2026
€4,800
Confirmed date
OnlineOnline
September 23, 2026
€2,400
Confirmed date
Kuala LumpurMalaysia
October 1, 2026
€4,800
Confirmed date
AmsterdamNetherlands
October 3, 2026
€4,900
Confirmed date
IstanbulTurkey
October 6, 2026
€4,400
Confirmed date
DubaiUnited Arab Emirates
October 9, 2026
€4,400
Confirmed date
TunisTunis
November 1, 2026
€4,400
Confirmed date
GenevaSwitzerland
November 4, 2026
€4,900
Confirmed date
LondonUnited Kingdom
November 6, 2026
£4,800
Confirmed date
SingaporeSingapore
November 11, 2026
€5,100
Confirmed date

Course Information

Duration

1 Weeks

Category

Oil & Gas

Level

Professional Level

Certificate

Included

INTRODUCTION

Petroleum projects require major capital commitments and frequently operate under significant geological, technical, commercial, and political uncertainty. Sound economic evaluation is therefore essential before committing resources to exploration, field development, production facilities, pipelines, and processing infrastructure. Decision-makers need reliable financial models that translate technical assumptions into measurable commercial outcomes. They must also understand how changes in reserves, production, prices, costs, schedules, and fiscal terms affect project value. This course introduces practical petroleum project economics and risk analysis methods for upstream and related energy investments. Participants explore cash flow modeling, discounting, profitability assessment, fiscal systems, uncertainty analysis, and investment decision criteria. They learn to distinguish deterministic forecasts from probability-based evaluations and risk-adjusted outcomes. Practical case studies develop the ability to challenge assumptions, interpret model results, and recommend appropriate actions. The course ultimately supports stronger capital allocation, investment governance, portfolio management, and commercial decision-making.

COURSE OBJECTIVES

Participants will achieve the following objectives by this course:

  • Understand the economic characteristics and value drivers of petroleum projects.
  • Develop structured project cash flow models using realistic technical and commercial assumptions.
  • Estimate capital expenditure, operating costs, production revenues, taxes, and project cash flows.
  • Calculate net present value, internal rate of return, payback, and profitability indicators.
  • Evaluate petroleum fiscal systems, contractual terms, royalties, taxes, and production sharing arrangements.
  • Apply sensitivity analysis to prices, costs, reserves, production, schedules, and discount rates.
  • Use scenario analysis and probability methods to assess project uncertainty.
  • Interpret risk-adjusted economic results and support investment decisions.
  • Compare alternative projects and prioritize capital across petroleum portfolios.
  • Present economic findings clearly to executives, investors, and governance committees.

TARGET AUDIENCE

This program targets a professional audience seeking to improve knowledge and skills:

  • Petroleum economists evaluating exploration, development, production, and infrastructure investment opportunities.
  • Finance professionals preparing cash flows, budgets, forecasts, and investment evaluations.
  • Reservoir engineers supporting reserves estimation, production forecasting, and development planning.
  • Petroleum engineers analyzing technical assumptions, operating performance, and project economics.
  • Project managers responsible for costs, schedules, risks, and investment delivery.
  • Planning professionals comparing opportunities and supporting capital allocation decisions.
  • Commercial managers reviewing contracts, fiscal terms, revenues, and profitability.
  • Risk analysts assessing uncertainty, scenarios, sensitivities, and decision exposure.
  • Executives approving petroleum investments and reviewing portfolio performance.
  • Government and regulatory professionals evaluating petroleum projects, fiscal returns, and development proposals.

COURSE OUTLINE

Day 1: Petroleum Project Economic Fundamentals

  • Petroleum value chains and project investment characteristics.
  • Exploration, appraisal, development, production, and abandonment phases.
  • Economic objectives and major project value drivers.
  • Time value of money and discounting principles.
  • Nominal and real cash flow concepts.
  • Inflation, exchange rates, and economic assumptions.
  • Project boundaries and evaluation perspectives.
  • Building a structured petroleum economic model.

Day 2: Cash Flow Modeling and Profitability

  • Estimating reserves, production profiles, and project revenues.
  • Forecasting capital expenditure and development schedules.
  • Estimating operating costs and abandonment liabilities.
  • Petroleum pricing assumptions and revenue calculations.
  • Constructing annual project cash flow statements.
  • Calculating net present value and internal return.
  • Applying payback period and profitability index.
  • Interpreting economic indicators for investment decisions.

Day 3: Petroleum Fiscal Systems and Contracts

  • Government take and investor economic interests.
  • Royalties, taxation, bonuses, and cost recovery.
  • Production sharing and concession arrangements.
  • Service contracts and risk allocation mechanisms.
  • Fiscal allowances, depreciation, and tax treatment.
  • Contractor entitlement and profit petroleum calculations.
  • Comparing fiscal regimes across investment opportunities.
  • Assessing contractual impacts on project economics.

Day 4: Uncertainty and Risk Analysis

  • Sources of geological, technical, commercial, and financial uncertainty.
  • Deterministic and probabilistic evaluation approaches.
  • Sensitivity analysis for critical project assumptions.
  • Scenario analysis for integrated project changes.
  • Decision trees and expected monetary value.
  • Probability distributions and simulated economic outcomes.
  • Risked reserves and exploration economic evaluation.
  • Interpreting confidence ranges and downside exposure.

Day 5: Investment Decisions and Portfolio Evaluation

  • Risk-adjusted discount rates and decision criteria.
  • Comparing mutually exclusive investment alternatives.
  • Capital rationing and petroleum portfolio prioritization.
  • Break-even prices and economic limit analysis.
  • Development concept selection using economic evidence.
  • Project delay, cost overrun, and production shortfall impacts.
  • Communicating economic results to decision-makers.
  • Developing a petroleum investment evaluation action plan.

COURSE DURATION

Duration: 1 Weeks

This intensive professional course is delivered over five consecutive training days through expert instruction, financial modeling exercises, petroleum case studies, group discussions, economic calculations, scenario evaluation, risk analysis activities, and investment decision applications relevant to exploration, development, production, and energy infrastructure projects.

INSTRUCTOR INFORMATION

The course is delivered by an internationally certified expert with extensive practical and consulting experience in petroleum economics, financial modeling, project evaluation, fiscal systems, risk analysis, investment appraisal, portfolio management, commercial analysis, and executive decision support across the oil and gas industry.

FREQUENTLY ASKED QUESTIONS

Yes, it explains economic concepts progressively and applies them through practical exercises.

CONCLUSION

This course provides a comprehensive framework for petroleum project economics and risk analysis. Participants gain practical capabilities in cash flow modeling, fiscal evaluation, profitability analysis, uncertainty assessment, and investment appraisal. The program connects technical project assumptions with financial outcomes and strategic decisions. Applied exercises enable participants to evaluate opportunities, compare alternatives, and communicate recommendations confidently. The course supports disciplined capital allocation, stronger investment governance, improved risk awareness, and sustainable project value.

Petroleum Project Economics & Risk Analysis

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