The course participants will have a thorough background understanding of the general concepts, procedure and terminology of petroleum economics and profitability analysis of Oil and Gas Projects. In particular it emphasizes the peculiarity and fiscal arrangements of the petroleum industry.It also provides decision maker, manager, engineer and analysts with a quantitative consideration of risk and uncertainty, and how these factors can be used in formulating investment strategies in the petroleum industry. It introduces comprehensive ways to evaluate and compare risks associated with different investment choices.It also reviews the various contractual and fiscal terms prevalent in the petroleum industry, and how the various arrangements affect investment profitability.
COURSE TOPIC
1. OVERVIEW
a.
IndonesiaUpstream
Oil And Gas Business
Process
b.
Upstream
Oil And Gas Activity Phase
2. PRINCIPLE OF PETROLEUM ECONOMIC CALCULATION
a.
Oiland Gas Production Profile Which Will Be Produced
i.
HC Inplace
ii.
Reserve and Recovery Factor
iii.
Production Forecasting/Lifting
b.
Costs
That Have Or Will Be Issued
i.
Exploration Cost
ii.
Exploitation Cost
iii.
General Administration Cost
c.
Oil
and Gas Prices Per Unit Volume
i.
Indonesia Crude Price (ICP)
ii.
Gas Price
d.
Revenue
Sharing Mechanisms
i.
PSC Cost Recovery
ii.
PSC Gross Split
3. PETROLEUM
ECONOMIC ANALYSIS
a.
Cash
Flow Analysis
b.
NPV
Analysis
c.
IRR
Analysis
d.
MARR
e.
POT
f.
Incremental Analysis
g.
Comparing Economic Indicator
4. RISK
ANALYSIS
a.
Oil
and Gas Upstream Business Risk
b.
Risk
& Uncertainty
c.
Expected
Value Concept
d.
Decision
Tree Analysis
e.
Farm-out
Decision
f.
Probability
Analysis
g.
Sensitivity
Analysis
h.
Spider
and Tornado Diagrams
