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
