Introduction

This Managing Oil & Gas Production Business training course will provide the key learning points to improve the efficiency of the oil and gas production business. The Oil and Gas industry has a very important role in the global economy and is the main source of income for many governments. The Oil and Gas industry is characterized as capital-intensive, highly risk, and requires state-of-the-art technology.

With the current crisis in energy worldwide, challenges related to climate change, alternative energies, and energy substitutions, there is a bad need to improve the efficiency of the oil and gas projects by professionals who have a wide-ranging and extensive understanding of the Oil and Gas industry, including economics evaluation and decision-making skills.

Course Objectives

• Understand the value chain of the oil and gas industry.
• Understand how to operate efficiently your oil and gas fields
• Understand the upstream petroleum economy.
• Evaluate the different opportunities and make effective decisions related to Oil and Gas operations
• Understand the different oil and gas production contracts and the effect of them on operations

Target Audience

• Petroleum Engineers
• Production Engineers
• Reservoir Engineers
• Operations Managers
• Production Technicians
• Facilities Engineers
• Field Supervisors
• Asset Managers
• Energy Analysts
• Project Managers in the oil and gas industry
• Geologists and Geophysicists involved in production activities
• HSE (Health, Safety, and Environment) Professionals specializing in oil and gas production

Course Outline

Day 1: Oil and Gas Industry Value Chain

• Characteristics of upstream oil and gas business
• Phases of upstream oil and gas operations
• Challenges in upstream operations
• Oil & gas reserves, production, consumption & trade
• The role of the integrated professional team in managing the business

Day 2: Petroleum Economics

• Net cash flow: Definitions, gross revenue, capital costs, operating costs, abandonment costs, and government take
• Economic life reserves, abandonment
• Profit income tax and loss carry forward
• Sunk costs
• Inflation
• Economic indicators, NPV, IRR, CPI, and payout time.

Day 3: Petroleum Contracts

• Principal licensing and contractual arrangements
• The modern concession contracts
• The production sharing contracts
• Participation agreements and joint operation agreements (JOA)
• Service contracts, pure service contracts, risk service contracts
• Financing in the international oil & gas industry
• Comparative analysis of the different contract forms

Day 4: Decision-Making in the Oil and Gas Industry

• Decision tree analysis
• Value of information
• Exploration drilling decisions
• Production decisions
• Making management decisions under conditions of certainty

Day 5: Risk Analysis

• Uncertainty in oil and gas projects
• Risk-free return
• Risk of the proposed project
• Treatment of risks in project appraisal
• Sensitivity analysis
• Portfolio analysis
• Hedging – risk management