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Risk Management in the Oil & Gas Industry (PBM54)

    In-House Request or Enquiry

    Description

    Risk analysis and management is a value creation process in oil and gas. Capital intensity and uncertainty make unmanaged risk a direct destroyer of value. Good decisions require clarity on what can go wrong, how likely it is, and how it affects outcomes. Therefore, structured decision analytic tools - probabilities, Bayesian updating, conditional dependencies, and value of information thinking - convert uncertainty into actionable insight.
    This course offers a disciplined assessment method to support better choices, better capital allocation, and safer operations. This approach to risk analysis and management is the foundation of consistent, high-quality decision making.

    Course Level: Skill
    Duration: 5 days

    Designed for you, if you are...

    • An energy analyst or project manager
    • Technical staff
    • HSE staff
    • A petroleum engineer or operations manager
    • A business development & corporate strategist
    • An investment & portfolio analyst
    • A policy specialist or regulatory advisor

    This course is designed for anyone involved in the process of reserves assessment, reporting and investment decision making. It is Ideal for professionals involved in investment analysis, technical assessments, and strategic planning within the hydrocarbon sector.

    How we build your confidence

    • Hands-on exercises using technical, financial, and statistical models
    • Real-world case studies covering successful assessments
    • Expert-led discussions on models and decision consequences
    • Software-based simulation and analysis for risk uncertainty modelling

    The benefits from attending

    For Professionals:
    • Builds practical expertise in petroleum risk analysis and management
    • Master analytical skills like probability models, simulations, and uncertainty quantification for effective decision making
    • Enhance decision-making ability under uncertainty
    • Enhance operational safety and learn about mitigation strategies
    • Enhances career prospects in risk management, portfolio management, and corporate strategy

    For Organisations:
    • Strengthens corporate capabilities in identifying operational risk, assessing their impacts, and managing them
    • Improves safety, reliability, and decision quality
    • Enhances strategic adaptability in an evolving energy landscape
    • Improves competitive positioning through informed management of risk and opportunities

    Topics

    Foundations of Risk and Value in Oil and Gas
    • Role of risk analysis in value creation
    • Sources of uncertainty across the petroleum value chain
    • Risk identification: operational, HSE, technical, commercial, and financial risks
    • Structured framing of decisions and risk events, systemic versus standalone risks
    • Building a disciplined risk mindset for high stakes environments: Scenarios for the future
    • Uncertainty has two sides: risk and upside opportunity

    Qualitative and Quantitative Risk Assessment
    • Qualitative assessment tools: risk matrices, probability scales, impact categories
    • Quantitative assessment: probability distributions, ranges, and criticality scoring
    • Linking probability and impact to expected value
    • Introduction to conditional probabilities and Bayesian updating
    • Case study: Drilling risk and project development

    Prioritisation, Mitigation, and Decision Quality
    • Ranking risks to focus on high value interventions
    • Mitigation planning: avoidance, reduction, transfer, and acceptance
    • Financial risks: using market instruments to hedge price risks
    • Financial risks: risk premiums of the industry
    • Decision making under uncertainty: structured approaches for better choices
    • Value of information when additional data improves decisions
    • Integrating risk insights into project and operational decisions

    Monitoring, Control, and Continuous Learning
    • Designing risk registers for operational use
    • Leading indicators vs. lagging indicators
    • Continuous monitoring and adaptive decision making
    • Beyond operations: risk in project investment performance
    • Embedding risk management into organizational processes

    Practical Application and Scenario Based Analysis
    • Hands on exercises using real world examples
    • Scenario based analysis for strategic commercial risk management
    • Risk premiums in the oil and gas industry, the insurance story of BP
    • Value of information, value of flexibility, and real options
    • Final integrated case: risk informed decision making for a major project

    Related Courses

    Customer Feedback

    "The course was very useful in terms of understanding the risks related to the oil & gas industry and how to make the best decisions regarding exploration, production, marketing and developing new projects." - Safety Engineer at Sirte

    "The course was very useful and well organised. The instructor was clear." - Sr. Development Engineer at Mabruk

    "The course provides a solid and practical understanding of the subject." - Shift Supervisor at Nafusah

    "Excellent course." - Environment Specialist at NOC

    "This course was certainly useful and insightful. It opened my mind to making better decisions and proceeding in the right direction in business." - Sr. HSE Advisor at Harouge

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