Course Details
This course provides a foundational understanding of petroleum economics, focusing on the economic principles that guide exploration, development, and production decisions in the oil and gas industry. Participants will gain insight into the economic evaluation of petroleum projects, including cost structures, price forecasting, risk analysis, fiscal regimes, and decision-making criteria such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. The course combines theoretical concepts with practical tools used to support investment and operational decisions in upstream, midstream, and downstream sectors.
DATE | VENUE | FEE |
30 Aug - 03 Sep 2026 | Muscat, Oman | $ 4500 |
This course is appropriate for a wide range of professionals but not limited to:
- New professionals in the oil and gas industry
- Engineers, geoscientists, and technical staff with limited economic background
- Financial analysts and accountants in petroleum companies
- Government regulators and policy makers
- Business development and commercial teams
- Anyone seeking to understand the fundamentals of petroleum economics
- Expert-led sessions with dynamic visual aids
- Comprehensive course manual to support practical application and reinforcement
- Interactive discussions addressing participants’ real-world projects and challenges
- Insightful case studies and proven best practices to enhance learning
By the end of this course, participants should be able to:
- Understand the economic drivers of the oil and gas industry.
- Analyze and forecast petroleum project revenues, costs, and profitability.
- Apply basic economic indicators such as NPV, IRR, and payback period.
- Evaluate different petroleum fiscal systems (e.g., royalties, PSCs, tax regimes).
- Perform simple economic modeling and sensitivity analyses.
- Make informed decisions based on economic analysis in petroleum projects.
DAY 1
Introduction to Petroleum Economics
- Welcome and introduction
- Pre-test
- Overview of the oil and gas industry value chain
- The role of economics in petroleum decision-making
- Key market concepts: supply, demand, and pricing
- Crude oil and gas pricing mechanisms (benchmarks and contracts)
- Economic vs. financial analysis
DAY 2
Cost Structures and Project Cash Flows
- Types of petroleum costs: CAPEX, OPEX, abandonment
- Cash flow fundamentals and components
- Cost estimation techniques
- Cash flow diagrams and modeling basics
- Investment life cycles and cost recovery concepts
DAY 3
Economic Evaluation Techniques
- Time value of money principles
- Key evaluation criteria:
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Payback Period
- Profitability Index (PI)
- Ranking and comparing project alternatives
DAY 4
Fiscal Systems and Risk Analysis
- Overview of global petroleum fiscal regimes:
- Concession systems
- Production Sharing Contracts (PSCs)
- Service contracts
- Taxation systems and royalties
- Introduction to risk and uncertainty
- Sensitivity analysis and scenario planning
DAY 5
Practical Applications and Case Studies
- Hands-on economic evaluation of a simple petroleum project
- Spreadsheet modelling workshop
- Case studies of real-world projects (onshore and offshore)
- Discussion of recent trends and price volatility
- Course review
- Post-test
- Certificate ceremony
Course Code
OGM-101
Start date
2026-08-30
End date
2026-09-03
Duration
5 days
Fees
$ 4500
Category
Oil and Gas Management
City
Muscat, Oman
Language
English
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