The implementation of any project, particularly an industrial one, must be preceded by a technical and economic evaluation to ensure the most informed investment decision possible. The vast majority of costs are incurred during the execution phase, which must be carefully planned, and risks managed. This course will cover the activities necessary to prepare for project sanction (approval) and the corresponding investment decision. The introductory lectures for each chapter will be supplemented by practical exercises and case studies in small groups.

It is particularly adapted to renewable energy projects , oil & gas projects and civil engineering projects.

PROJECT MANAGEMENT PROCESS

Introduction: definition, objectives, methodology

Front End Engineering Studies: screening of options, conceptual studies, basis of design, pre-engineering, surveys

Procurement and contracting strategies

Project organization and execution plan

Tendering process

Cots estimates (CAPEX, OPEX, Abandonment)

FINAL INVESTMENT DECISION BEFORE EXECUTION

Cash flow modeling (Time value of Money, discount rates, NPV, Pay-back)
Inflation, nominal money and constant money
Risk analysis, sensitivities
Project validation criteria
Final Investment decision (FID): essential conditions, consequences, stakeholders

CASE STUDIES

Development study (can be adapted to a specific context)

Capex/Opex : impact on Procurement strategy
Production Acceleration
Gas pipeline profitability
Equipment replacement

OPTIONAL

FROM PROJECTS’ ECONOMICS TO COMPANY’S FINANCIAL PERFORMANCE
Equity capital analysis, project financing
Equiy profitability analysis
Balance sheet,
Operating income, net income
Financial indicators