Upstream Gas Business

This virtual offering focuses on the upstream sectors of the natural gas value chain with emphasis on exploration, appraisal and field development activities. Along with the in-depth review of technical and commercial topics, key part of the learning is delivered through team participation in a challenging gas business game where the participants must present their exploration project analyses and decisions to their peers and mentors at the end of the week.

Additional information

Program Type

Location

Dates

October 4 – 7, 2021

$2,100

Who Should Attend

This program will benefit management, administration, and specialists (technical, financial, legal, regulatory, and governmental) at all levels of gas industry experience who wish to broaden their knowledge of the business environment and “best practices” of the natural upstream gas business, especially the initial discovery, resource size assessment, and field development planning of major gas projects. The daily sessions, as outlined below, will cover the upstream sectors of the gas value chain with focus on exploration, drilling and well completions, reserves calculations, and field development planning topics.

Lecture Content

Overview of the International Gas Industry

Gas measurements and units; the gas chain; market structures; worldwide natural gas economics; regulation and deregulation; major players; evolution of the integrated gas-power business.

Host Government Agreements

The various forms of host government agreements: concession; PSC; service agreement; risk service agreement; major fiscal terms that impact gas projects; review and analysis of sample agreements and their financial analysis.

Exploration Methods

The exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies.

Drilling and Well Completions

Planning the drilling of a well: drilling plan and cost estimation, formation evaluation plan, logistics, reporting results; drilling equipment and process; directional drilling, drilling exploration and development wells, well testing and evaluation, well completions including stimulation.

Cost of Gas Supply and Energy Project Economics

Economic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis.

Reservoir Characterization and Estimating Resources and Reserves

Reservoir characterization: defining geological reservoir model; categories of resources and reserves; estimating hydrocarbons in-place and those recoverable at different stages of exploration and development with special emphasis on gas and gas liquids.

Gas Field Design and Development

Overview of the gas field design process; subsurface reservoir development planning; surface facilities planning and design; capital cost estimation; project economics; case studies.

Unconventional Gas Resources

A comprehensive and practical understanding of the processes that are applied in the development of unconventional gas projects, by looking at an active investment area: the Marcellus shale project in the United States.

Measuring Company Financial Performance

Review of financial statement: income statement, balance sheet, cash flow and shareholders’ equity; capital and operating costs; measurements of financial performance; benchmarking; utility accounting methods; taxation; the accounting and audit process.

Workshop

Upstream Gas Business Simulation Game: Cosmos

This business game is an integral part of the learning process. Participants, divided into teams, make realistic technical, commercial, and market decisions that commonly confront managers in the international gas business today. Team performance is measured on a financial basis and is accompanied by healthy competition. The challenging international gas business game takes place in “Cosmos”, an island republic in East Africa. Gas and condensates are expected to be discovered in the offshore blocks. Teams enter into exploration agreements, explore for and discover hydrocarbon resources, and then decide on the best way to develop and monetize the gas reserves over a 15-year production period.

Simulation Sessions:

  • Introduction to Project Simulation Scenario
  • Exploration Work Commitment and Agreement Review
  • Seismic Exploration Decision
  • Exploration and Appraisal Drilling
  • Estimating Resources and Reserves
  • Gas Field Development Planning
  • Team Presentations and Summary of Gas Simulation Game Results