The British Academy for Training and Development offers a comprehensive financial modelling and petroleum project economics training course. This training course on Financial Modelling and Petroleum Project Economics offers attendees an integrated and applied understanding of the financial analysis tools and techniques relating to the oil and gas industry. It will also teach varied methods to build proforma analysis and how to conduct various financial analyses and forecasts and applied risk analysis tools in investments or projects.

This training course is structured into careful balance between formal lectures from leading experts and case studies that illustrate applications of the various techniques with Excel. It should serve everyone in the upstream and downstream views with a very good understanding of how modern analysis and forecasting are done. 

This specialised training course provides practicing financial analysts with the skills of financial modelling, risk assessment, and economic evaluation tailored for the petroleum industry. Attendees take their training by developing dynamic financial models with Excel, evaluating their investment decisions based on various key metrics such as NPV, IRR, and payback periods, which are necessary to be applied in upstream and downstream projects.

Cost estimation, cash flow forecasting, sensitivity analysis, and scenario planning related to strategic decision-making are also addressed during the course delivery. By means of case studies derived from petroleum and related modelling exercises, the analyst will have a solid grounding in the areas of uncertainty and regulatory frameworks in evaluating oil and gas ventures.

Completely suited for professionals engaged in energy finance, the course links technical and financial assessment, allowing attendees to derive insight towards intelligent investment performance in the petroleum sector.

Objective:

The main objective of this course are:

Provides financial modelling training with a focus on petroleum projectsFamiliarises attendees with the use of investment assessment tools such as NPV, IRR, and payback period in decision-making processesTrain in cash flow forecasting with respect to project operations and capital expendituresTraining will be provided for sensitivity and scenario analysis for all types of risk assessmentUnderstand the economic rationale for the project evaluation in oil and gasReal-life data and case studies will complement practical learningBring out the confidence to present financial insights to stakeholdersDeliver financial solutions, which correspond closely with technical and operational realities, in the energy sectorEnhance career prospects through specialised education in highly demanded financial skills in petroleum economicsHow to improve the quality of the quantitative analysis of my corporate presentationsHow to model and advise on hedging price changes in the oil and gas industryHow to model investment appraisal techniques and utilise decision trees to model the option to abandonHow to analysis the company and highlights areas that need improvementWho Should Attend?

This Financial Modelling and Petroleum Project Economics training course is suitable for:

Oil & Gas Field EngineersOil & Gas ManagersOil & Gas AuditorsFinancial AnalystsSupervisorsDecision-makers and Financial Modelers in the up-stream and down-stream Oil and Gas industryHigh level Managers integral to the decision making process who wish to develop their financial modelling skillsSpecifically for energy managers, supervisors, and key employees from broad functional areas, such as finance, technology, and project development who wish to expand their knowledge of financial modeling and petroleum project economics.How will attendees benefit?

​Attendees of the Financial Modelling and Petroleum Project Economics training course will gain a comprehensive benefits:

Use Excel For Advanced Financial Modeling: Learn how to use Excel to create dynamic financial models that will enhance the accuracy of predicting and analyzing the petroleum project. Improve the Investment Decision Evaluative Techniques: Cash flow techniques, like Net Present Value (NPV), Internal Rate of Return (IRR) and payback period, are used to gauge the commercial viability of prospective oil and gas projects. Managing Risks and Uncertainties: Beet red incisors, gaiety getting momentous, do cattle graze across? The questions flair through the mouths of aqua and burgundy as thin streams catch the lower afternoon sun glimmers.Improve Strategic Planning: Learn about petroleum specific cost estimation, cash flow forecasting, and macroeconomic indicators to make better-informed strategic decisions.Improve Your Career Opportunities: Gain key skills required for contributing to business decisions, having the confidence to dispute prevailing financial models within corporate settings, and increasing the chances for career advancement in the energy sector. 

The course empowers financial analysts with the tools and knowledge to evaluate and manage petroleum projects more effectively, improving the organisation's performance and enhancing the career growth of these individuals.

Module 1: Financial Modelling in the Oil & Gas Industry

• Introduction to the Excel Environment with Oil and Gas

• A Quick-start Tutorial for Excel

• Describing Data Sets Using Statistics

• Representing Data sets Graphically

• Understanding the Concept of Normal Distribution and practical application

• Trend Analysis Using Excel

• Time Series Analysis

Statistical Analysis (Applied to the Oil and Gas Industry) Using Excel

• Use of Excel Functions for Statistical Analysis

• Descriptive Statistics and their applications:

• Mean

• Median

• Standard Deviation

• Skewness

• Kurtosis

• Use of Scatter Diagrams, Frequency and Histogram Distribution

• Regression Techniques to Calculate the Cost of Equity Financing

• Analysis of Equity Returns of Oil and Gas Industry and Companies

Oil Product Spreads

• Examining the Relationship between Energy Products

• Differences between Data Sets and their importance.

• Correlation Analysis

• Confidence Intervals

• Application of Analysis of Variance (ANOVA)

Investment Appraisal Using Excel

• Investment Appraisal using NPV, IRR, and Payback as Applied to the Oil and Gas Industry

• Use of Excel Functions for Investment Appraisal: IRR, PV and NPV

• Modified Internal Rate of Return (MIRR)

• Use of Scenario Analysis and Stress Testing

• Predicting Financial Distress

Financial Analysis in the Up and DownStream Oil and Gas Industry

• Introduction to Financial Statements

• Ratio Analysis Applied to the Oil and Gas Industry

• Ratios as a System – Pyramids of Ratios

• Financial Modelling

• Cash Flow Forecasts Using Excel

Module 2: Petroleum Project Economics & Risk Analysis

• Cash-flow Analysis

• Familiarization with Economic terms

• Setting up Cash-flow Calculation

• Depreciation Methods

• Loss Carry Forwards

• Inflation

• Nominal & Real Cash-flow

• Sunk Costs

• Project Financing

Economic Indicators

• Economic Indicators Definitions

• Present Value Concept

• Discount Factor

• Net Present Value

• Internal Rate of Return

• Effect of Project Delay

• Payback Period

• Profit / Investment Ratio

• Incremental Projects

Risks and Uncertainties

• Risk & Uncertainty

• Expected Value Concept

• Decision Tree Analysis

• Farm-out Decision

• Probability Analysis

• Sensitivity Analysis

• Probability Distribution

• Monte Carlo Simulation

Setting up Spreadsheet Calculation

• Introduction to Spreadsheet Calculation

• Simple Cash-flow using Excel

• NPV Calculations

• Application of Economic Indicators

• Class Discussion

Setting up Oil Field Development Model

• Setting up an Integrated Economic Model of a Typical Oil Field Development

• Project Sensitivity Analysis for the Selected Model

• Introduction to Russell Field Model

• Final Remarks