Managing Petroleum Projects
Course Overview
Running a successful petroleum operation requires a blend of technology, business savvy, and people skills. If you already have a firm grasp of exploration or production technology, learn to amplify its effectiveness with applied project management techniques. This course is aimed at helping technical personnel make the best business decisions, decisions that lead to lowest project cost while still meeting all production or exploration goals. Petroleum Project Management covers the principles and application of project management to the upstream oil and gas business. Because of this experience with practical situations, participants can use these project management principles their first day back on the job.
Course Objectives
- how to apply economic and risk management evaluation tools for oil and gas project proposals
- how to identify and quantify key uncertainties during field development and full life-cycle economics
- how to calculate the economic and financial viability of expenditure proposals projects under risk conditions
- how to develop a structured approach to measuring, managing and combating commercial risk
- how to assess the ranking of alternative projects
- how to prepare credible project proposals with a view to winning management, partner and government approval
- how to improve project and business outcomes
Course Outline
Basic concepts
- Identifying project cash flows and sources of information
How to calculate project benefits and interpret the answer
- Project payback
- Net Present Value (NPV)
- Internal Rate of Return (IRR) and the cost of capital
- Profitability Index (PI)
- Strengths and limitations of each method
Project ranking - how to choose the best alternative
- How to optimise expenditure
How to deal with inflation and with exchange rates
Taking account of taxation
Accounting measures versus economic measures
- Understanding other financial criteria for decision making
- Balancing short term versus long term business objectives
Dealing with risk and uncertainty
- How to identify and quantify project risks and uncertainties
- Sensitivity analysis
- How to draw and interpret spider and tornado diagrams
- Calculation of maximum exposure as a risk measure
- Decision trees and the calculation of Expected Monetary Value (EMV)
Economics, risk and decisions - decision points are risk points
- Decision points for oil fields and gas fields
- Risk and probability definitions and concepts
- Risk identification, measurement and management
- Forecasting as risk management
- Assumptions, sensitivities and risk premiums
Exploration and appraisal decisions, uncertainty, risk and exposure
Monte Carlo simulation
Economic models and spreadsheet design
Development decisions
- Workscope definition and options
- Decommissioning economics and risks
- Cost estimating and contingencies
- Financing options
- Construction contracts
Further development decisions and economic cut-off
Preparing convincing project proposals
$250.00
$2500.00
$3200.00
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