Economic Evaluation and Investment Decision Methods in Oil & Gas Exploration & Production

Synthesis

Introduction to E&P. Case study: Development of an offshore fieldOil&Gas in the World Energy ContextLife cycle of a typical oil and gas project
The many different kinds of investment in E&P
Case study: Final Investment Decision (FID) for an offshore oil field, Impact of the fiscal terms (Gulf of Mexico (GOM) or offshore Norway)

Critical Concepts. Case study: impact of inflation
Cash Flows and Assets
The time Value of Money and Discount Factor
Special Cash Flows: the Perpetuity Cash Flows
Inflation. Extensions and Qualifications
Case study: Impact of inflation in Norway in the field development

More Critical Concepts. Case study: Exploration Decision Method
NPV Rule and Cash Flow Computations
Discount Rates and Discount Rates Over Time
Project Interactions
Case study: Decision Tree Model and Its Analysis
Exploration Decision Method

Project Analysis. Case study: EOR with solar generated steam injection
Other Investment Rules (Payback, IRR, PI)
Making Investment with NPV
Risk Management
Managing International Risks
Case study: EOR with solar generated steam injection

Wrap-up
How to deal with various forms of opposition to your project?
World Energy Outlook for Oil and for Gas
Wrap-up of the key messages
Discussion and feedbacks

Language

English

Audience type

Last year for Undergraduates, Graduates and MBA level students

Planned duration

5 days / 20 hours

Support material

Various slides and course materials

Prerequisite

None for this type of audience

Objectives

Knowledge about economics and business is very important for the engineers and future managers. Most of them will be managing and making decisions about projects and budgets; It is important to know about markets, decision-making, business principles and optimization

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