Practice of Exploration-Production Contracts Economic Modeling
PMC-EN-P
Who should attend?
To provide a practical understanding of the economic modeling of Oil & Gas field development project as well as exploration projects.
A number of computer case studies will be treated all along the course to apply the principles that are presented succinctly, which makes this course a very practical one.
Public :
Economists, engineers and executives involved in Exploration-Production activities who need to acquire a deep understanding of fiscal modeling for project evaluation.
Level :Skilled
Prerequisite :
Basic knowledge of Microsoft Excel.
Course Content
CONTRACTUAL & FISCAL FRAMEWORK OF EXPLORATION-PRODUCTION
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Duration : 0.5 Day
Overview of E&P activities, exploration, development and production costs.
General principles of oil taxation.
Concession contracts, production sharing contracts and service contracts.
Principles of rent sharing between States and oil companies.
Case studies: examples of contracts.
OIL CONTRACT MODELING
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Duration : 2 Days
Cost of capital and discount rate, value creation.
Economic criteria for project evaluation: net present value (NPV), internal rate of return (IRR), payback period, etc.
Global profitability analysis, the impact of taxation and inflation on economic indicators.
Specific method to Exploration and Production: shadow interest.
Case studies: development of an oil field (under concession and production sharing agreements).
Equity profitability analysis.
Case studies: LNG project and gas pipeline project with specific financing.
RISK ANALYSIS OF EXPLORATION-PRODUCTION PROJECTS
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Duration : 0.5 Day
Introduction to risk analysis and risk discount rate: sensitivity analysis, Spider and Tornado diagrams.
Probability of success, methodology of decision tree analysis.
Analysis of economic risk in exploration.
Typical problems with uncertainties:
Impact of ringfencing and State participation on the exploration decision process.
Farm in/farm out, cost and value of information.
Portfolio management for E&P projects.
CASE STUDIES
Development of an oil field (under concession and production sharing agreements).
LNG plant project with specific financing.
Impact of “ringfencing” and the state participation in the decision-making process.
Valuation of a decision to acquire information (seismic or drilling).
Pricing of an exploration bloc.
Learning Objectives
Attendees will be able to implement the following skills:
Build economic models for the economic evaluation of Exploration-Production projects,
Analyze the economic results and carry out sensitivity analysis,
Incorporate the geological risk and uncertainty in the economic evaluation of E&P projects.
Ways & Means
Case studies simulated on computers.
Learning assessment
Participants will be evaluated during the training through quizzes and case studies.
More
Coordinator :IFP Training trainers having expertise and experience in upstream project economic modeling.
To French entities : IFP Training is referenced to DataDock ; you may contact your OPCO about potential funding.
Please contact our disabled persons referent to check the accessibility of this training program : referent.handicap@ifptraining.com
IFPT Account
