Akademie

Co ur se De scr iption
C ourse Objectives
BS150

This workshop provides practical guidance in the

application of the techniques of the economic anal-
ysis 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 in-
dicators, risk and uncertainty, different economic
structures such as tax regimes and production
sharing contracts, enhances the quality and the
value of economic analysis.
Participants will gain the knowledge and skills of
evaluating upstream petroleum assets, including
the determination of economic indicators and ana-
lyzing risk and uncertainty.
Petroleum Economics & Risk Analysis
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 pe-
troleum related projects
• Evaluate and quantify risks and uncertainties
• Make the right investment decision in the pres-
ence of risk
• Carry out a comprehensive economic evalua-
tion study for any petroleum related project
including risk analysis and sensitivity study us-
ing spreadsheet

Who should a t t en d ?
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, explora-
tion, production, projects, financing and technical
departments in oil & gas companies.
In s t r ucto r P r o f ile
Mr. Salem M. Zeglam
A private petroleum consultant with over 35 years experience in oil & gas production op-
erations, reservoir engineering, project evaluation and petroleum economics. He held a
16 - 20 January 2011, Dubai

number of managerial positions such as planning and reservoir engineering manager with
major petroleum companies. He graduated as a Petroleum Reservoir Engineer from the Uni-
versity 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 C ontact Information

DAY 1: Cash flow analysis Main Office

• Familiarization with economic terms
• Feasibility studies TUV Akademie Middle East
• Setting up cash flow calculation P O Box 46030
• Depreciation Abu Dhabi
• Depreciation methods United Arab Emirates
• Loss carry forwards Tel : +971 2 4478500
• Inflation Fax : +971 2 4478558
• Nominal & real cash flow Email : me-akademie@tuv-nord.com
• Sunk costs
• Project financing For any information or registration for the course, you
can contact the Course Co-ordinator at the contact de-
DAY 2: Economic indicators tails mentioned overleaf.
• Economic indicators definitions
• Present value concept
• Discount factor
• Net present value C ourse Fee
• Internal rate of return
• Effect of project delay
• Payback period Fee : US$ 3,690 per delegate
• Profit/investment ratio
• Incremental projects Duration of course : 5 days
• Comparing economic indicators
Date : 16 - 20 January 2011
DAY 3: Risks and uncertainties
• Risk & uncertainty Location : Dubai
• Expected value concept
• Decision tree analysis
• Farm-out decision
• Probability analysis Other Information
• Sensitivity analysis
• Spider and tornado diagrams
• Probability distribution
• Monte carlo simulation TUV Akademie Certificate will be issued to all at-
tendees.
DAY 4: Setting up spreadsheet calculation
• Introduction to spreadsheet calculation Course Fee mentioned is per delegate.
• Simple cash flow using excel
Avail an attractive 5% discount on course fee if
DAY 5 : Setting up oil field development model you register 30 days before course start date.
• Setting up an integrated economic model of a typi-
cal oil field development project including sensitiv-
Courses will be conducted during the designated
ity analysis
dates at a 4 star or 5 star hotel in the designated
Training Methodology: city.
The workshop will include a number of exercises aimed
at enhancing each participant capability to conduct var- Payments to be made in advance. Exact venue
ious economic evaluations. In addition each participant of the training will be notified two weeks prior to
will attempt to develop spreadsheet calculations of var- course start date.
ious economic analyses. At the end of the workshop
each participant will be given a comprehensive spread- This rate includes course notes, buffet lunch, cof-
sheet program that can carry out a complete economic
fee/tea on arrival, morning and afternoon of each
evaluation including a sensitivity analysis. Additionally,
the workshop assumes no or limited prior knowledge day.
of the topics covered in the course. New concepts and
tools are introduced gradually to enable delegates to Accomodation is not included in course fees. How-
progress from the fundamental to the advanced con- ever, any accomodation required can be arranged
cepts of economic evaluation. by TUV Akademie at time of booking.

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