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Petroleum Economics Decision Analysis
This course introduces terminology, overview and addresses issues ranging from economics concepts, reserves calculation to the practical evaluation in day to day workover/ drilling. This course also discuss Value of Information (VOI) concept and its application to the investment decision in petroleum industry. Relevant and practical issues are discussed to help participants to better understand their work and how it relates to others .
Course Info
Schedule
Day 1
Introduction to Petroleum Economics
- Revenue, Expenses, Cash Flow Diagram
Overview of Reserves & Resources
- Original Oil/ Gas in Place, Volumetric (Reserves) Estimation, Deterministic and Probabilistic Methods (Monte Carlo)
- Reserves and Resources
- Unconventional Hydrocarbon (shale oil/gas, CBM, heavy oil, gas hydrate, low perm oil, tight gas sands), Resources Triangle concept
- Case study discussion
Overview of Production Forecasts and Reserves Estimation
- Decline Curve Analysis (exponential Decline, Hyperbolic Decline, Harmonic Decline)
- Pore Volume Calculation of Reserves
- Material Balance Methods of Reserves Analysis
- Reservoir Simulation for Reserves Calculation
- Case study discussion
Day 2
Economics Decision Tools
- Fundamental bases for Decision
- Approaches to Economic Quantification, The Time Value of Money
- Project Life and Cash Flow Pattern
- Economics Yardsticks: Net Present Value (NPV), Discounted Profitability index (DPI), Internal rate of Return (IRR), Return of Investment (ROI), Payout Period
- Case study discussion
Risks and Uncertainties
- Handling Probabilities, Sensitivity Analysis, Expected Value Concepts
- Decision Tree
- Stochastic Modelling (Monte Carlo Simulation)
- Preference Theory and Bias
- Value of Information (VOI)
- Case study discussion
Day 3
Type of Agreements Between Operating Companies and Host Governments
- Concession Contracts
- Joint Venture Agreement
- Production Sharing Contracts/Agreements (PSC/PSA)
- Risk contracts, Service Contracts
- Case study discussion
Petroleum Engineers, Non-Petroleum Engineers or Scientists, Support Staff, new hires, Finance and Accounting.
Iwan Setya Budi, MT
- 20 years experiences in oil and gas industry, Master degree in Geology, now Lecturer at Pertamina University and PhD student at Petroleum Engineering, ITB.
Dr. Jati Arie Wibowo
- Hold PhD Degree in Petroleum Economics from Petroleum Engineering, ITB, now lecturer at Pertamina University.