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ONLINE: Economic Analysis for Upstream Projects (PBM940)


    This course is aimed at providing fundamental knowledge of economics, contracts/taxation and finance/control for upstream oil and gas projects in the light of risk and uncertainty.
    Economic analysis is a vital input to decision making, whether for maximising value of investment opportunities or insuring capital is allocated wisely.

    Course Structure: 3 modules of 3 hours each, delivered over 3 days
    Each day will consist of 1 module which will be no more than 3 hours in length with multiple breaks.

    Course Level: Skill
    Duration: 3 days
    Instructor: Pete Smith

    Designed for you, if you are...

    • A petroleum / reservoir /drilling engineer or geoscientist working in a multidiscipline team

    How we build your confidence

    This is a three-session online course with lectures supported and illustrated by worked examples, case studies and follow-up exercises, group exercises and quizzes to give assurance that key learnings are accomplished.

    The benefits from attending

    By the end of the course you will feel confident in:

    • Investigating investment profitability using decision analysis
    • Validating data using statistical distributions and combining them
    • Evaluating forecasts and presenting them effectively including the correlation between variables
    • Understanding the economic & contractual framework
    • Assessing portfolio management; asset aggregation, methodology and processes


    Session 1
    • Introduction
    • Risk analysis
      - Utility curves
      - Risk attitudes
      - Cognitive biases
    • Probability definitions - decision trees and Bayes theorem

    Session 2
    • Concept of value, NPV and IRR
    • Investment profitability & economic modelling
    • Fiscal regimes - finance & control

    Session 3
    • Portfolio management
      - Asset aggregation
      - Portfolio optimisation
    • Contribution of risk analysis for portfolio management



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