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Managing Oil & Gas Production

Introduction

This Managing Oil & Gas Production Business training course will provide the key learning points to improve the efficiency of the oil and gas production business. The Oil and Gas industry has a very important role in the global economy and is the main source of income for many governments. The Oil and Gas industry is characterized as capital-intensive, highly risk, and requires state-of-the-art technology.

With the current crisis in energy worldwide, challenges related to climate change, alternative energies, and energy substitutions, there is a bad need to improve the efficiency of the oil and gas projects by professionals who have a wide-ranging and extensive understanding of the Oil and Gas industry, including economics evaluation and decision-making skills.


Course Objectives

  • Understand the value chain of the oil and gas industry.
  • Understand how to operate efficiently your oil and gas fields
  • Understand the upstream petroleum economy.
  • Evaluate the different opportunities and make effective decisions related to Oil and Gas operations
  • Understand the different oil and gas production contracts and the effect of them on operations


Target Audience

  • Petroleum Engineers
  • Production Engineers
  • Reservoir Engineers
  • Operations Managers
  • Production Technicians
  • Facilities Engineers
  • Field Supervisors
  • Asset Managers
  • Energy Analysts
  • Project Managers in the oil and gas industry
  • Geologists and Geophysicists involved in production activities
  • HSE (Health, Safety, and Environment) Professionals specializing in oil and gas production


Course Outline

Day 1: Oil and Gas Industry Value Chain

  • Characteristics of upstream oil and gas business
  • Phases of upstream oil and gas operations
  • Challenges in upstream operations
  • Oil & gas reserves, production, consumption & trade
  • The role of the integrated professional team in managing the business


Day 2: Petroleum Economics

  • Net cash flow: Definitions, gross revenue, capital costs, operating costs, abandonment costs, and government take
  • Economic life reserves, abandonment
  • Profit income tax and loss carry forward
  • Sunk costs
  • Inflation
  • Economic indicators, NPV, IRR, CPI, and payout time.


Day 3: Petroleum Contracts

  • Principal licensing and contractual arrangements
  • The modern concession contracts
  • The production sharing contracts
  • Participation agreements and joint operation agreements (JOA)
  • Service contracts, pure service contracts, risk service contracts
  • Financing in the international oil & gas industry
  • Comparative analysis of the different contract forms


Day 4: Decision-Making in the Oil and Gas Industry

  • Decision tree analysis
  • Value of information
  • Exploration drilling decisions
  • Production decisions
  • Making management decisions under conditions of certainty


Day 5: Risk Analysis

  • Uncertainty in oil and gas projects
  • Risk-free return
  • Risk of the proposed project
  • Treatment of risks in project appraisal
  • Sensitivity analysis
  • Portfolio analysis
  • Hedging – risk management