Oil and gas economics – Techniques and Application, 19 – 20 January 2016, Ritz Carlton – Jakarta

November 7, 2015 • Tell FriendsPrinter Friendly

In collaboration with Energy Nusantara,  this 2-day interactive training that suits to those who working in Oil and gas companies, EPC companies, Lawyers, Consultants, Investors, Banks, Storage and transportation, Suppliers, Government and regulators. This training is both Indonesia and International focus with case study and hands on material using computer.

course outline 2 day oil and gas economicsKey Highlights

  • Appreciate that static DCF NPV is not enough to measure the whole value of an oil and gas project.
  • Move beyond the static approach framework that is implicit in most current analyses to an explicit modeling and analysis using dynamic approach
  • Have acquired the skills to identify, model and evaluate the oil and gas case in Indonesia using all available techniques (conventional to modern approach)

Overview

Many people in oil and gas 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
  • overbuilding production facilities

The static discounted cash flow (DCF) valuation methods currently in common use in these industries have systematic biases that can lead asset managers to fall in to all of these traps, and others. These more recent valuation methods differ from static DCF methods by using Modern Real Options Method (RO). For more than 20 years, Real Options (RO) had been developed to show how the current standard approaches to value estimation in financial markets, when applied properly. This approach can help asset managers to make better decisions in dealing with these and other issues.

RO automatically causes the different types and levels of uncertainty inherent in different asset designs and management plans to have appropriately different effects on asset value. This is not possible with a “one discount rate fits all” DCF approach to valuation. RO uses financial market data as much as possible to help organizations understand the effects of uncertainty on value.

Training Scheme

  • learn the basic of investment evaluation techniques as well as the practical implementation of these techniques to oil and gas project assessment
  • enable participants to identify and quantifying risk using sensitivity and scenario analysis and Monte Carlo Simulation
  • learn how to asses the value of information and value of flexibility in managing the uncertainty of the oil and gas project covered in decision tree analysis
  • bring participants up to date on recent development in project modeling and evaluation using Real Option Valuation (ROV) techniques

Case Study

  • PSC block acquisition in Natuna and Java
  • Harvard Business Case “Penzoil vs Texaco”

Training Material

  • Extensive set of course notes detailing valuation concepts, numerical calculations and practical valuation examples
  • Excel Spreadsheets Model for valuing oil and gas project
  • Crystal Ball Software (Trial Version) for Monte Carlo Simulation

Computer Requirement
As the course is Excel-Based, it would be highly desirable if participants could bring with them their own laptop computer

To reserve your seat and inquiries, please register :
1. Online at Reservation Form
2. Email us at training@energynusantara.com
3. Call us at +62-877-8198-8709 (Ms. Chechi)

 

 

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