Petroleum Economics and Risk Analysis (An Application in PSC Gross Split vs Cost Recovery)

Petroleum Economics and Risk Analysis

An Application in PSC Gross Split vs Cost Recovery

25 – 27 August 2020 - Online

Course outline

Current low oil price has made many oil projects were delayed while waiting for the situation strengthen. An analysis on operating and investment costs is therefore very crucial task. Any mistake in Project Development and operation together with weak control in costs will lead a profit reduction or even more a loss for the company.

Many people in the petroleum industry are concerned that their organizations may be destroying value by making systematic errors in investment evaluation and decision. Some common problems include: undervaluing long-lived assets and overbuilding production facilities

In a challenging petroleum industry, it is very important to identify the uncertain variables and explore ways to minimize the downside risk and to maximize the upside potential. The Advance analysis using probabilistic model and Real Options method is essential to understand the influences and dynamics of project economics with respect to the petroleum industry becoming imperative for anyone undertaking the development of a new project.

This specially designed 3-day cutting edge course aims to provide a solid understanding how to evaluate of petroleum  projects using conventional to advance approach.


Course objective

This course will :

  • Learn the basic of evaluation techniques as well as the practical the implementation of these techniques to upstream project using both PSC and Gross split calculation
  • Enable participants to identify and quantifying risk using probabilistic Monte Carlo Simulation
  • Learn how to assess the value of information in managing the uncertainty of the upstream project using decision tree analysis
  • Bring participants up to date on recent development in project modeling and evaluation using advance valuation techniques.


Key Benefit

At the end of the course participants will:

  • Have acquired the knowledge of best practice of investment strategy in upstream project
  • Have acquired the skills to identify, model and evaluate a project using deterministic and probabilistic approachA



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