Day 1: Introduction to the World of Petroleum Project Economics

In this comprehensive 3-day course, we delve into the intricate world of petroleum project economics and economic modelling. Let's embark on this journey, day by day, to understand the fascinating nuances of this critical field.

1. Introduction to Petroleum Project Economics and Economic Modelling

Our journey begins with a fundamental understanding of petroleum project economics and the art of economic modelling. This course equips you with the knowledge and skills essential to navigate the complex world of oil and gas economics.

2. Overview of the Upstream Project Lifecycle

We'll explore the entire lifecycle of upstream projects, from inception to completion, to provide you with a holistic view of the industry.

3. Unveiling Project Risks

A critical aspect of any project is understanding the risks associated with it. We dissect the geological, cost, and price-related risks that can impact the economics of a petroleum project.

4. The Properties of Oil and Gas

Oil and gas have unique properties that influence economic decisions. We'll explore how these properties affect project economics and the decision-making process.

5. Project Economic Inputs and Assumptions

An in-depth look at the inputs and assumptions that underpin economic models, including exploration risk, production data, capital and operating expenditures, well data, netback costs, quality differentials, and abandonment.

6. Real vs. Nominal Cash Flow

We'll demystify the concepts of real and nominal cash flow, helping you understand the crucial difference between the two.

7. Profits and Indicators

Dive into profitability indicators, including NPV, rate of return, and various profitability ratios, which play a pivotal role in decision-making.

8. Navigating Petroleum Fiscal Frameworks

An exploration of petroleum fiscal frameworks and government take calculations. Understand how different fiscal systems impact the economics of projects.

9. Simulating Economic Models

Learn how to simulate economic models to make informed decisions. Practical insights into applying theory to real-world scenarios.

10. Delving into Fiscal Concepts

An extensive examination of fiscal concepts, including bonuses, rentals, royalties, corporate income tax, consolidation, ring-fencing, deductions, and minimum income tax.

11. Production Sharing Arrangements

Discover how production sharing arrangements interact with other taxes, shaping the economic landscape of petroleum projects.

12. Fiscal Issues in Joint Ventures

An analysis of fiscal issues in joint ventures and farm-ins and farm-outs. Explore the complexities of collaborative ventures in the oil and gas industry.

Day 2: Beyond the Basics

13. Special Taxes and Levies

A closer look at special taxes based on gross revenues, other gross revenue-based levies, and taxes based on net revenues. Understanding the impact of these taxes on project economics.

14. R-Factor and IRR

Explore features based on R-factor and Internal Rate of Return (IRR) and how they influence project economics.

15. Navigating Additional Taxes

An in-depth exploration of other taxes, including those affecting service companies, customs payments, VAT, property taxes, carbon taxes, and domestic market obligations.

16. Understanding Fiscal Systems

An in-depth analysis of fiscal systems, including concessions, production sharing contracts, service contracts, joint ventures, and hybrid systems. Get insights into the legal and economic classifications of these systems.

17. Fiscal Policy Matters

Consideration of fiscal policy issues and an analysis of selected fiscal regimes. Understanding the broader economic context in which these systems operate.

Day 3: Advanced Insights

18. Government Take Timing

An analysis of the timing of government’s take, including front-end and back-end loading. Discover how timing can affect project economics.

19. Incremental Analysis

Discussion of incremental analysis and its impact on government revenues. Learn how incremental changes can significantly impact project economics.

20. Maximising Economic Value

Explore strategies for maximising economic value and reserves recovery. Uncover the tactics that can make a project more profitable.

21. Marginal Field Development

Discover the intricacies of developing marginal fields in both conventional and unconventional resources. This session provides practical insights into making the most of these resources.

22. Revenue and Cost Verification

An examination of revenue and cost verification, cost of administration, and fiscal assessment frameworks. Understand the importance of accurate financial data.

23. Licensing Policies

Explore licensing policies for pre-set and biddable fiscal items. Get a grasp of the regulatory frameworks that govern the industry.

24. Local Content Development

Discussion of local content development and a comparative assessment of petroleum opportunities in selected fiscal regimes. Learn how local content can impact project economics.

Conclusion

This comprehensive 3-day course offers participants a deep understanding of the economics and fiscal aspects of petroleum projects, preparing them for the complexities of the industry and the global variations in fiscal regimes.

Understanding Petroleum Fiscal Regimes from Both Sides

Petroleum fiscal regimes are a critical aspect of the energy industry, impacting governments, investors, and exploration and production projects. By attending a course on this subject, participants gain practical knowledge that allows them to understand these regimes from both the government's and investor's perspectives. They also learn how to perform economic analyses of fiscal terms to make better investment and policy decisions, ultimately leading to the design and improvement of fiscal systems for exploration and production projects.

I. Introduction

Let's delve into the specifics of this course, explaining its significance in today's energy landscape. We will break down the content into several sections, each focusing on different aspects of petroleum fiscal regimes.

II. Understanding Petroleum Fiscal Regimes

Government's Perspective

Governments play a pivotal role in shaping petroleum fiscal regimes. This section will explore how they view and manage these regimes, considering their economic and political objectives.

Investor's Perspective

Investors, on the other hand, have their unique set of goals and expectations from fiscal systems. This section will discuss how fiscal terms influence their investment decisions and strategies.

III. Performing Economic Analysis of Fiscal Terms

The Importance of Economic Analysis

Understanding the economic impact of fiscal terms is crucial. We'll elaborate on why economic analysis is vital and how it guides decision-making in the energy sector.

Fiscal Terms and Investment Decisions

This part will shed light on the various fiscal terms and their role in investment decisions, emphasising the need for comprehensive assessments.

IV. Designing and Improving Fiscal Systems

Fiscal Systems for Exploration and Production Projects

Effective fiscal systems are paramount for the success of exploration and production projects. We will discuss the components that make up these systems.

Economic Impact and Policy Decisions

How fiscal systems affect project economics and influence policy decisions will be explained in this section.

V. The Economics of an Exploration and Production Petroleum Project

Basics of Petroleum Projects

To understand fiscal systems, it's essential to grasp the fundamentals of exploration and production projects in the petroleum industry.

Key Economic Considerations

We will highlight the key economic considerations that drive the decision-making process in these projects.

VI. Understanding Petroleum Fiscal Concepts

Global Fiscal Concepts

Different fiscal concepts are applied worldwide. We'll explore these concepts and their significance in the energy industry.

Attributes of Fiscal Systems

What makes a fiscal system effective? This section will delve into the attributes that define successful fiscal systems.

VII. Economic Analysis of Individual Fiscal Features

In-Depth Analysis of Fiscal Components

A deeper dive into individual fiscal features will provide insights into their economic properties and significance.

Their Impact on Projects, Companies, and Governments

Understanding how these features impact project economics and influence decisions made by companies and governments is critical for a holistic perspective.

VIII. Competitive and Resource Management Fiscal Policy Framework

Framework Explanation

This section explains the competitive and resource management fiscal policy framework, providing a structured approach to fiscal policy.

Application in the Petroleum Sector

We will explore how this framework is applied specifically in the petroleum sector, highlighting its practical utility.

IX. Addressing Investor's Objectives through Fiscal Systems

Investor's Goals

Investors have specific objectives when participating in petroleum projects. This section will outline these goals.

Aligning Fiscal Systems with These Objectives

We'll discuss how fiscal systems can be tailored to meet investor's goals effectively.

X. Addressing Government's Budgetary and Resource Management Objectives

Government's Priorities

Governments have their own set of priorities related to budget and resource management. We'll explore these priorities in detail.

Fiscal Systems to Meet These Goals

This section focuses on how fiscal systems can be designed to address government's budgetary and resource management objectives.

XI. Analysing Actual Countries' Fiscal Systems

Case Studies

We'll look at real-world examples, examining the fiscal systems of specific countries.

Assessing Fiscal Systems Through a Policy Framework

How to assess these systems through the competitive and resource management fiscal policy framework will be a key point of discussion.

XII. Comparative Assessment and Benchmarking of Petroleum Fiscal Systems

How to Conduct Comparative Assessments

This section provides a step-by-step guide on how to compare different fiscal systems.

Benchmarking Fiscal Systems

We'll discuss benchmarking and its role in evaluating the effectiveness of fiscal systems.

XIII. Designing and Improving Fiscal Systems for Oil and Gas

Best Practices in Design

What are the best practices in designing fiscal systems for oil and gas? This section will provide insights.

Continuous Improvement

Fiscal systems are not static; they need to evolve continuously. We'll explore the importance of continuous improvement.

XIV. Evaluating Government Fiscal Policy

Identifying Areas for Improvement

We'll discuss how to identify areas where government fiscal policies can be improved.

Implications for Exploration and Production Assets

What do these improvements mean for exploration and production assets?