Training Course: Petroleum Project Economics & Financial Modelling

Introduction

Many senior and middle managers do not utilise Excel to its maximum potential. Instead they use it as they would a calculator. If you fall into this category, then this training course is for you. Having completed this 05-days training course you will have the requisite tools to utilize Excel to its fullest and be better equipped to challenge decisions.

In addition, if you work in the upstream or downstream, and your career progression is being restricted by outdated knowledge of modelling techniques then this Petroleum Project Economics & Financial Modelling training course will help you move your career forward.

Course Objectives

• How to improve the quality of the quantitative analysis of my corporate presentations.
• How to model and advise on hedging price changes in the oil and gas industry.
• How to model investment appraisal techniques and utilize decision trees to model the option to abandon.

Course Outlines

Day 1: AN INTRODUCTION TO THE EXCEL ENVIRONMENT, WITH OIL AND GAS BASED EXAMPLES

• A quick-start tutorial for Excel.
• Describing data sets using statistics.
• Representing data sets graphically.
• Understanding the concept of normal distribution.
• Trend analysis using Excel.
• Time series analysis.
• Mini-Case studies.

Day 2: STATISTICAL ANALYSIS (APPLIED TO THE OIL AND GAS INDUSTRY) USING EXCEL

• Use of Excel functions for statistical analysis.
• Descriptive statistics.
• Mean, Median, Standard deviation, Skewness and Kurtosis.
• Use of scatter diagrams, frequency and Histogram distribution.
• Regression techniques to calculate cost of equity financing.
• Analysis of equity returns of Oil and Gas industry companies.
• Mini-Case studies.

Day 3: INVESTMENT APPRAISAL USING EXCEL

• Investment appraisal using NPV, IRR and payback as applied to the Oil and Gas industry.
• Use of Excel functions for investment appraisal: IRR, PV and NPV.
• Modified Internal Rate of Return (MIRR).
• Use of scenario analysis and stress testing.
• Predicting financial distress.
• Mini-Case studies.

Day 4: FINANCIAL ANALYSIS IN THE UP AND DOWN STREAM OIL AND GAS INDUSTRY

• Introduction to financial statements.
• Ratio analysis applied to the Oil and Gas Industry.
• Ratios as a system – pyramids of ratios.
• Financial modelling.
• Cash flow forecasts using Excel.
• Mini-Case studies.

Day 5: OIL PRODUCT SPREADS

• Examining the relationship between energy products.
• Differences between data sets.
• Correlation analysis.
• Confidence intervals.
• Analysis of Variance (ANOVA).
• Mini-Case studies.