Introduction

Investment decisions within the upstream oil and gas sector require rigorous economic analysis to ensure capital is allocated to projects that deliver sustainable value and acceptable levels of risk. Exploration and production projects often involve significant financial commitments, long development timelines, and exposure to technical, commercial, and market uncertainties. As a result, project evaluation methodologies play a critical role in determining the viability and attractiveness of investment opportunities.

The Petroleum Project Economics & Risk Analysis training course provides participants with a practical understanding of the economic techniques used to evaluate petroleum projects and support strategic investment decisions. The training course focuses on developing cash flow models, applying economic indicators, assessing project profitability, and analysing the impact of uncertainty on project outcomes.

Participants will explore methods for evaluating risks, conducting sensitivity analysis, applying probability-based techniques, and building integrated economic models to support project ranking and selection. The training course combines economic theory with practical spreadsheet applications to strengthen analytical capability and improve decision quality across the project lifecycle.

Key focus areas include:

Key Learning Outcomes

At the end of this Petroleum Project Economics & Risk Analysis training course, participants will be able to:

Training Methodology

This training course adopts a practical, hands-on approach centred on the economic evaluation of petroleum projects. Participants develop spreadsheet-based models, perform investment analyses, and apply risk assessment techniques through guided exercises, case studies, and instructor-led discussions. The training course combines conceptual understanding with practical application to ensure participants can confidently use economic tools and methodologies within real project environments.

Petroleum Project Economics & Risk Analysis

Who Should Attend?

This Petroleum Project Economics & Risk Analysis training course is designed for:

  • Oil & Gas Field Engineers
  • Oil & Gas Managers
  • Oil & Gas Auditors
  • Oil & Gas Planners
  • Financial Analysts
  • Project Management Professionals
  • Petroleum Economists
  • Upstream Development Professionals

Course Outline

Day 1

Cashflow Analysis

  • Familiarization with Economic terms
  • Setting up Cashflow Calculation
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cashflow
  • Sunk Costs
  • Project Financing
Day 2

Economic Indicators

  • Economic Indicators Definitions
  • Present Value Concept
  • Discount Factor
  • Net Present Value
  • Internal Rate of Return
  • Effect of Project Delay
  • Payback Period
  • Profit / Investment Ratio
  • Incremental Projects
Day 3

Risks and Uncertainties

  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Probability Distribution
  • Monte Carlo Simulation
Day 4

Setting up Spreadsheet Calculation

  • Introduction to Spreadsheet Calculation
  • Simple Cashflow using Excel
  • NPV Calculations
  • Application of Economic Indicators
  • Class Discussion
Day 5

Setting up Oil Field Development Model

  • Setting up an Integrated Economic Model of a Typical Oil Field Development
  • Project Sensitivity Analysis for the Selected Model
  • Introduction to Russell Field Model
  • Final Remarks

International Standards & Professional Alignment

Our training courses are aligned with internationally recognised professional standards and frameworks across leadership, strategy, finance, governance, risk, compliance, and audit. By integrating globally trusted models, we ensure learners develop practical, relevant, and industry-recognised capabilities.

Our trainings draw on leading international standards and professional frameworks, including ISO, ISACA, COSO, OECD, IIA, FATF, Basel, IFRS/ISSB, GRI, NIST, CPD, ILM and the OECD AI Principles. This alignment ensures consistency with global best practices across financial management, risk oversight, digital governance, sustainability, and strategic decision-making..

Designed in alignment with globally recognised professional bodies, our courses support continuous professional development, strengthen organisational capability, and provide clear pathways toward professional certifications valued worldwide.

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