Petroleum Project Economics is a comprehensive two-week professional training program designed to equip participants with a structured and practical understanding of economic evaluation in oil and gas projects. The program focuses on how economic principles are applied to exploration, development, and production decisions across the petroleum value chain. It covers cost and revenue modeling, fiscal systems, cash flow analysis, and investment appraisal techniques used by international oil and gas companies. Participants gain the ability to interpret economic results and support informed investment and portfolio decisions.
Petroleum projects are capital-intensive, long-term, and exposed to significant uncertainty. Sound economic analysis is therefore essential for evaluating project viability, comparing development options, and allocating capital efficiently. This training program introduces participants to the economic tools and frameworks used to assess petroleum projects from early concept screening through final investment decision and beyond.
By the end of this training program, participants will be able to:
This program is designed for professionals involved in oil and gas projects who require a solid understanding of project economics, including:
Project managers and engineers
Petroleum, production, and reservoir engineers
Finance and commercial professionals
Planning and business development staff
Government and regulatory professionals
Technical professionals transitioning into management or decision-making roles
Overview of the petroleum value chain with emphasis on market regulation and oversight. Role of economics in upstream, midstream, and downstream decision-making. Relationship between project economics, national energy policy, and market stability. Key economic indicators used by ministries and regulators.
CAPEX and OPEX in production, processing, storage, and distribution. Cost drivers affecting petroleum product prices. Fixed versus variable costs in refining, storage terminals, and transportation. Cost transparency and benchmarking for regulatory monitoring.
Crude oil and petroleum product pricing mechanisms. International benchmarks and reference prices. Pricing of refined products, LPG, LNG, and natural gas. Factors influencing price volatility. Economic tools for monitoring, analyzing, and explaining price movements in domestic markets.
Production profiles and supply planning. Supply–demand balance and its impact on prices. Economic implications of supply disruptions. Role of storage and strategic reserves in stabilizing markets. Introduction to inventory monitoring from an economic perspective.
Royalties, taxes, subsidies, and their impact on petroleum prices. Government take versus consumer price implications. Economic assessment of price controls and subsidy mechanisms. Fiscal tools used to manage affordability and market stability.
Economics of petroleum storage facilities for liquid and gaseous products. Storage capacity planning and utilization. Cost of holding inventory. Strategic reserves versus commercial storage. Inventory monitoring methods used by regulators and ministries.
Economic analysis of petroleum distribution networks. Transportation modes and cost structures. Bottlenecks and inefficiencies in distribution systems. Impact of logistics performance on availability and pricing. Regulatory oversight of distribution chains.
Construction of cash flows for petroleum infrastructure projects (storage terminals, pipelines, depots). Time value of money. Economic evaluation of storage and distribution investments. Use of NPV, IRR, and payback in infrastructure decision-making.
Price risk, supply risk, and inventory risk. Sensitivity analysis for prices, costs, and demand. Scenario analysis for shortages, oversupply, and price shocks. Economic tools to support market stability and crisis management.
Comprehensive case study covering price monitoring, stock levels, and distribution performance. Interpretation of economic data for policy and regulatory decisions. Best practices for petroleum market oversight. Key lessons and application to ministerial and regulatory roles.