« Back to course list

Basic Petroleum Economics (PBM14)

    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


    Enquiry

    Name:
    E-Mail:
    Company:

    Message:
    Newsletter:

    HOT Engineering GmbH

    Parkstrasse 6
    8700 Leoben
    Austria

    Tel.: +43 3842 43053-0
    Fax: +43 3842 43053-1
    E-Mail: hot@hoteng.com

    HOT Reservoir Solutions GmbH HOT Microfluidics GmbH

    Am Stollen 19
    38640 Goslar, Germany

    Tel.: +49 151 42440 739
    Fax: +43 3842 430 53-1
    E-Mail: hotrs@reservoirsolutions.com
    E-Mail: microfluidics@hoteng.com

    HOT Middle East

    138 Fatimah Bint Mubarak Street
    Al Yasat Tower, P.O. Box: 97
    Abu Dhabi, UAE

    Tel.: +971 2 672 0730
    Fax: +971 2 674 2422
    E-Mail: me@hoteng.com

    HOT Engineering Libyan Branch

    Essyahia City
    Tripoli, Libya

    Tel.: +218 21 483 7278
    Fax: +218 21 483 2283
    E-Mail: libya@hoteng.com

    HOT Engineering GmbH   Tel: +43 3842 43 0 53-0   Fax +43 3842 43 0 53-1   hot@hoteng.com