OIL & GAS EXPLORATION ECONOMICS

 

Course Description/Overview

The course participants will have a thorough background understanding of the general concepts, procedure and terminology  exploration economics and profitability analysis of Oil and GasProjects. In particular it emphasizes the peculiarity and fiscal arrangements of the oil & gas industry.It also reviews the various contractual and fiscal terms prevalent in the oil & gas industry, and how the various arrangements affect investment profitability.

Evaluation and analysis of upstream oil and gas projects shall be undertaken by considering the economics of oil and gas projects. Oil & gas economics is an important activity in upstream oil and gas business as it will be the basis for making a decision whether oil and gas business should be continued

Course Topic

1.    OVERVIEW

a.    Indonesia Upstream Oil And Gas Business Process

b.    Upstream Oil And Gas Activity Phase

2.    PRINCIPLE OF OIL & GAS EXPLORATION  ECONOMIC

a.    Oil and Gas Production Profile Which Will Be Produced: Reserve, RF, Production Forecast

b.    Costs That Have Or Will Be Issued: Capex&Opex

c.    Oil and Gas Prices Per Unit Volume: ICP, WTI, Brent, Gas& LNG Price

d.    Sharing Mechanisms: PSC Cost Recovery & PSC Gross Split

3.    OIL & GAS  ECONOMIC ANALYSIS

a.    Cash Flow Analysis

b.    NPV Analysis

c.    IRR Analysis

d.    MARR

e.    POT

f.     Incremental Analysis

g.    Comparing Economic Indicator

4.    EVALUATION OF UPSTREAM OIL AND GAS PROJECT

a.    Payback Period

b.    Evaluation of Upstream Oil and Gas Project: Individual

c.    Evaluation of Petro-economic of  Executing Agency

d.    Evaluating  Economic Impact

5.    RISK ANALYSIS

a.    Oil and Gas Upstream Business Risk

b.    Risk & Uncertainty

c.    Expected Value Concept

d.    Decision Tree Analysis

e.    Probability Analysis

f.     Sensitivity Analysis

g.    Spider and Tornado Diagrams