Introduction

In the high-stakes world of oil and gas, the ability to effectively manage project economics and performance is essential for ensuring profitability, reducing risk, and maximizing value. As global energy demand fluctuates, and new technologies reshape the industry, executives must be adept at balancing cost efficiency, financial modeling, and performance optimization to achieve project success in the upstream, midstream, and downstream sectors.

This advanced course is designed for senior project managers, financial analysts, and executives in the oil and gas industry who seek to enhance their ability to evaluate, structure, and manage large-scale projects. The focus will be on advanced project economics, the latest performance management methodologies, and how to navigate the complexities of global oil and gas projects.

Objectives

By the end of this course, participants will be able to:

• Conduct advanced economic evaluations for oil and gas projects
• Implement financial modeling techniques to optimize project investment decisions
• Apply key performance indicators (KPIs) and performance management strategies for projects
• Develop and manage cost control and budgeting systems for complex oil and gas projects
• Understand risk analysis and sensitivity analysis to improve decision-making
• Incorporate sustainability and environmental considerations into project economics
• Navigate the global supply chain, fiscal regimes, and taxation issues in project evaluation

Who Should Attend?

This program is ideal for:

• Project Managers, Financial Analysts, and Project Economists in oil and gas projects
• Executives, VP-level professionals, and C-suite leaders responsible for project portfolios
• Business Development Managers evaluating investment opportunities in oil and gas
• Contract and Risk Managers who want to integrate performance metrics into project execution
• Government regulators and professionals involved in project financing and taxation in the energy sector

Course Outline

Day 1: Introduction to Oil & Gas Project Economics

• Overview of oil and gas project types and key project drivers (upstream, midstream, downstream)
• The importance of economic evaluation in oil and gas projects
• Understanding capital expenditures (CAPEX) and operating expenses (OPEX)
• The role of project life cycle in financial planning and budgeting

Day 2: Financial Modeling for Oil & Gas Projects

• Developing advanced financial models for oil and gas projects
• Discounted cash flow (DCF) and net present value (NPV) analysis
• Internal rate of return (IRR) and payback period metrics
• Sensitivity analysis and managing financial risks through modeling techniques
• Case study: Financial modeling for an oil field development project

Day 3: Advanced Cost Estimation and Budgeting

• Techniques for accurate cost estimation in oil and gas projects
• Estimating CAPEX, OPEX, and decommissioning costs
• Managing cost overruns and ensuring budget compliance
• The impact of market volatility on cost projections
• Practical workshop: Developing a cost estimation model

Day 4: Performance Management in Oil & Gas Projects

• Identifying and implementing key performance indicators (KPIs)
• The role of performance benchmarking and best practice standards
• Aligning project performance with strategic objectives
• Using real-time data to measure and improve project performance
• Case study: Implementing KPIs in a global oil exploration project

Day 5: Risk Management & Sensitivity Analysis

• Introduction to risk management techniques in oil and gas projects
• Conducting sensitivity analysis to assess project viability under different scenarios
• Risk modeling: Monte Carlo simulations and probabilistic analysis
• Developing a risk mitigation strategy for high-risk oil and gas projects
• Case study: Risk management in a deep-water drilling project

Day 6: Cost Control, Financial Oversight, and Optimization

• Implementing effective cost control systems in large-scale projects
• Tracking project performance through financial dashboards
• Techniques for reducing costs without compromising project quality or safety
• Managing project budgets and maintaining financial oversight throughout the project lifecycle
• Workshop: Optimizing cost control and financial oversight systems

Day 7: Incorporating Environmental & Sustainability Factors into Project Economics

• Understanding the impact of environmental regulations and sustainability goals on project economics
• Integrating carbon pricing and green technologies into economic evaluations
• Balancing economic feasibility with environmental responsibility
• Case study: Incorporating sustainability into the economics of a shale oil project

Day 8: Global Supply Chains and Fiscal Regimes in Oil & Gas Projects

• Managing global supply chains and logistical complexities in international projects
• Evaluating the impact of taxation, royalties, and production sharing contracts on project economics
• Understanding foreign exchange risks, tariffs, and cross-border financial transactions
• Case study: Managing fiscal regimes and taxation in offshore oil field development

Day 9: Portfolio Management & Multi-Project Optimization

• Techniques for managing multiple projects within an oil and gas portfolio
• Optimizing resource allocation across large-scale, multi-year projects
• Project portfolio evaluation: Understanding return on investment (ROI) and project prioritization
• Case study: Portfolio optimization for a global oil and gas conglomerate

Day 10: Leadership, Decision Making, and Closing the Course

• Bridging the gap between strategic leadership and operational project management
• Making effective financial decisions in high-stakes projects
• Preparing for uncertainty and market fluctuations in future projects
• Final project: Developing a comprehensive economic and performance management plan
• Graduation, networking, and certification ceremony

Certification

Upon successful completion of the program, participants will receive an Executive Certification in High-Level Project Economics & Performance Management for Oil & Gas, demonstrating their expertise in advanced financial modeling, cost control, and performance management for oil and gas projects.