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

Day 2

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 3

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

Day 4

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 5

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.

Instructor 1

20 years experiences in oil and gas industry, Master degree in Geology, now Lecturer at Pertamina University and PhD student at Petroleum Engineering, ITB.

Instructor 2

Hold PhD Degree in Petroleum Economics from Petroleum Engineering, ITB, now lecturer at Pertamina University.