Akademie

This workshop provides practical guidance in the

application of the techniques of the economic analysis currently used in the oil & gas industry. When
executing a petroleum related project, such as a
field development, you should be able to choose
the best alternative from economic point of view.
You should be able to properly evaluate various
investment opportunities by determining economic
indicators and sensitivity analysis. Techniques for
predicting profit, production, costs, and cash flow
enable the analyst to evaluate decision alternatives
for optimum results. Understanding economic indicators, risk and uncertainty, different economic
structures such as tax regimes and production
sharing contracts, enhances the quality and the
value of economic analysis.

C ourse Objectives
The primary objectives of the course are to:
Understand various economic terms used in
the oil & gas industry
Understand how to develop economic models
of various petroleum fiscal regimes
Carry out cash flow analysis and determine
economic indicators
Carry out different economic analyses for petroleum related projects
Evaluate and quantify risks and uncertainties
Make the right investment decision in the presence of risk
Carry out a comprehensive economic evaluation study for any petroleum related project
including risk analysis and sensitivity study using spreadsheet

Participants will gain the knowledge and skills of

evaluating upstream petroleum assets, including
the determination of economic indicators and analyzing risk and uncertainty.

Who should a t t en d ?

In s t r ucto r P r o f ile

16 - 20 January 2011, Dubai

Petroleum Economics & Risk Analysis

BS150

Co ur se De scr iption

Engineers, geologists, economists, accountants,

technicians who need to learn how to conduct
economic evaluation and to understand the role
of petroleum economics in investment decision
making. This workshop is also recommended for
supervisors & managers in the planning, exploration, production, projects, financing and technical
departments in oil & gas companies.

Mr. Salem M. Zeglam

A private petroleum consultant with over 35 years experience in oil & gas production operations, reservoir engineering, project evaluation and petroleum economics. He held a
number of managerial positions such as planning and reservoir engineering manager with
major petroleum companies. He graduated as a Petroleum Reservoir Engineer from the University of Texas in Austin in 1973 and has been actively involved ever since throughout the
petroleum industry. He developed a number of petroleum related courses and workshops
and has been lecturing them throughout the Middle East.

C ontact :
Ms. Suzan
Tel : +971 2 4478500
Email :suzanh@tuv-nord.com

C o u rse O ut l i ne
DAY 1: Cash flow analysis
Familiarization with economic terms
Feasibility studies
Setting up cash flow calculation
Depreciation
Depreciation methods
Loss carry forwards
Inflation
Nominal & real cash flow
Sunk costs
Project financing
DAY 2: Economic indicators
Economic indicators definitions
Present value concept
Discount factor
Net present value
Internal rate of return
Effect of project delay
Payback period
Profit/investment ratio
Incremental projects
Comparing economic indicators
DAY 3: Risks and uncertainties
Risk & uncertainty
Expected value concept
Decision tree analysis
Farm-out decision
Probability analysis
Sensitivity analysis
Spider and tornado diagrams
Probability distribution
Monte carlo simulation
DAY 4: Setting up spreadsheet calculation
Introduction to spreadsheet calculation
Simple cash flow using excel
DAY 5 : Setting up oil field development model
Setting up an integrated economic model of a typical oil field development project including sensitivity analysis
Training Methodology:
The workshop will include a number of exercises aimed
at enhancing each participant capability to conduct various economic evaluations. In addition each participant
will attempt to develop spreadsheet calculations of various economic analyses. At the end of the workshop
each participant will be given a comprehensive spreadsheet program that can carry out a complete economic
evaluation including a sensitivity analysis. Additionally,
the workshop assumes no or limited prior knowledge
of the topics covered in the course. New concepts and
tools are introduced gradually to enable delegates to
progress from the fundamental to the advanced concepts of economic evaluation.

C ontact Information
Main Office
TUV Akademie Middle East
P O Box 46030
Abu Dhabi
United Arab Emirates
Tel : +971 2 4478500
Fax : +971 2 4478558
Email : me-akademie@tuv-nord.com
For any information or registration for the course, you
can contact the Course Co-ordinator at the contact details mentioned overleaf.

C ourse Fee
Fee : US$ 3,690 per delegate
Duration of course : 5 days
Date : 16 - 20 January 2011
Location : Dubai

Other Information
TUV Akademie Certificate will be issued to all attendees.
Course Fee mentioned is per delegate.
Avail an attractive 5% discount on course fee if
you register 30 days before course start date.
Courses will be conducted during the designated
dates at a 4 star or 5 star hotel in the designated
city.
Payments to be made in advance. Exact venue
of the training will be notified two weeks prior to
course start date.
This rate includes course notes, buffet lunch, coffee/tea on arrival, morning and afternoon of each
day.
Accomodation is not included in course fees. However, any accomodation required can be arranged
by TUV Akademie at time of booking.

Partners