Petroleum Project Economics with a Challenging Simulation Game

During this virtual program, an abbreviation of our instructor-led course, you will learn, in a practical and realistic manner, the essentials of petroleum project economics and how to analyze the financial performance of oil and gas project investments from both the project and corporate reporting perspectives. Your teams will be asked to build a financial model in Excel for a challenging oil and gas project opportunity near Indonesia, identify its key performance metrics, and then incorporate its major risks and uncertainty into the analysis. You will then present your team’s recommendations to a Board that will compare your recommendations with other teams and select the best plan for the Team Prize.

Additional information

Program Type

Location

Unit

Full Program (Individual), Full Program (Team)

Dates

September 6 – October 29, 2021

$950$3,750

Clear

Subject Area

Petroleum Economics

Target Audience

Individuals who wish to learn petroleum project fundamentals and how to analyze their economic attractiveness.

Commitment

3-4 hours self-study and 1 hour online virtual mentored session per week for seven continuous weeks.

Learning Formats

e-Learning, self-study, combined with individual or team participation in a competitive project simulation with an engaging virtual mentor.

Simulation Scenario

Teams will be asked to build a financial model in Excel for a challenging oil and gas project opportunity near Indonesia, identify its key performance metrics, and then incorporate its major risks and uncertainty into the integrated project analysis.

Program Content

Pre-Learning

Upstream Oil and Gas Agreements

Week One

Energy Industry Supply, Demand and Pricing Fundamentals

Introduction to Simulation Scenario; Review Business Opportunity

Week Two

Project Management and Development Essentials

Analyze Fiscal Terms and Exploration Project Cost Data; Prepare PSA Inputs

Week Three

Project Economics: Cash Flow and Measures of Financial Performance

Develop the Pro forma Financial Model

Week Four

Financial Statements and Measures of Corporate Performance

Identify Measures of Project Performance

Week Five

Project Capital and Debt Financing

Evaluate Financing Alternatives

Week Six

Managing Risk and Uncertainty

Incorporate Sensitivity Analysis; Prepare and Submit Integrated Development Decision

Week Seven

Mentor Review of the Integrated Project Economic Model