Petroleum Economics & Gas Commercialization Concept
The economics of upstream oil and gas play a crucial role in managing oil and gas assets, particularly in investment decision-making, asset valuation, and the general operational management of assets (Working Area/WK) for company growth. It is essential for all employees to have sufficient knowledge and understanding of the principles of economic evaluation in oil and gas, allowing them to actively engage in discussions about asset management and investment from a commercial/economic perspective. Knowledge of the business process of utilizing natural gas, which is more complex than oil resources, will complement the oil and gas economics competency. The Petroleum Economics & Gas Commercialization Training is designed to provide a foundation and essential knowledge for employees to plan, evaluate, and analyze the economics of upstream oil and gas projects. It also equips employees with basic knowledge in planning the commercialization and development of natural gas resources, including preparing working papers in accordance with best practices. This training is delivered through a combination of lectures, sharing sessions, and exercises. For the exercises, Excel software will be used as a tool. The training materials are based not only on formal publications and regulations but also on the facilitator’s experience and best practices. Exercises will be provided at the end of specific topics. The training duration is four (4) days.
- Increased knowledge of oil and gas economics, particularly in oil and gas exploration, and additional personnel with competencies in upstream oil and gas economics.
- Gained basic knowledge of fiscal systems and economics in upstream oil and gas business development.
- Enhanced understanding of the process of utilizing natural gas resources within the upstream value chain and concepts for commercializing natural gas resources.
- Practical tips and tricks, knowledge sharing for preparing economic components and conducting evaluations.
- Acquired knowledge on economic evaluation processes in transparent and reliable working papers.
- Improved overall quality of feasibility studies.
F. Reservoir Engineer Course/Petroleum Engineering
4 days
Skilled
Classroom
DAY 1
1. FUNDAMENTALS
- Principles of Upstream Economics
- Evaluation approach
2. CASH FLOW CONCEPT
- Cashflow components
- Time value of money
- Discounted cashflow
DAY 2
3. DECISION TOOLS
- Financial Assumptions
- Decision Metrics:
✓ Valuation metric
✓ Profitability metric
✓ Exposure Metric
4. FISCAL SYSTEMS
- Principles of PSC Indonesia
- Elements and Calculations of PSC Cost Recovery
- Elements & Calculation of PSC Gross Split
- New PSC Gross Split
DAY 3
5. UTILIZATION OF NATURAL GAS RESOURCES
- Permit and Regulations
- Natural Gas Utilization Mechanism
✓ Monetization process
✓ Pricing
6. GAS COMMERCIALIZATION CONCEPT
- Commercialization & Devwelopment Options
- Commercial Agreements
DAY 4
7. RISK ANALYSIS
- Uncertainties vs Risks
- Conventional vs Modern Method
8. PSC MODEL CONCEPT
- Worksheet Structure
- Data preparation
- Fiscal Modeling Concept
Retired Upstream Petroleum economist. Vast experience and strong knowledge in Oil & Gas upstream planning and investment management. About twenty years’ experience related to Indonesian PSCs. Also, exposure to global Oil & Gas fiscal terms: Asia, Middle East & Africa. Experience as instructor in internal/in-house and public trainings on Petroleum Economics & Risk Analysis.
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