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0 This workshop provides practical guidance in the application of the techniques of the economic anal-ysis currently used in the oil & gas industry. When executing a petroleum related project, such as a field development, you should be able to choose the best alternative from economic point of view. You should be able to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cash flow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic in-dicators, risk and uncertainty, different economic structures such as tax regimes and production sharing contracts, enhances the quality and the value of economic analysis.

Participants will gain the knowledge and skills of evaluating upstream petroleum assets, including the determination of economic indicators and ana-lyzing risk and uncertainty.

Course Objectives

Who should attend?

The primary objectives of the course are to:Understand various economic terms used in • the oil & gas industryUnderstand how to develop economic models • of various petroleum fiscal regimesCarry out cash flow analysis and determine • economic indicatorsCarry out different economic analyses for pe-• troleum related projectsEvaluate and quantify risks and uncertainties• Make the right investment decision in the pres-• ence of riskCarry out a comprehensive economic evalua-• tion study for any petroleum related project including risk analysis and sensitivity study us-ing spreadsheet

Engineers, geologists, economists, accountants, technicians who need to learn how to conduct economic evaluation and to understand the role of petroleum economics in investment decision making. This workshop is also recommended for supervisors & managers in the planning, explora-tion, production, projects, financing and technical departments in oil & gas companies.

Instructor Profi leMr. Salem M. ZeglamA private petroleum consultant with over 35 years experience in oil & gas production op-erations, reservoir engineering, project evaluation and petroleum economics. He held a number of managerial positions such as planning and reservoir engineering manager with major petroleum companies. He graduated as a Petroleum Reservoir Engineer from the Uni-versity of Texas in Austin in 1973 and has been actively involved ever since throughout the petroleum industry. He developed a number of petroleum related courses and workshops and has been lecturing them throughout the Middle East.

Ms. SuzanTel : +971 2 4478500Email :suzanh@tuv-nord.com

Contact :

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Course Description

Course Outl ine

DAY 1: Cash flow analysis Familiarization with economic terms•Feasibility studies •Settingupcashflowcalculation•Depreciation•Depreciation methods•Loss carry forwards•Inflation•Nominal&realcashflow•Sunk costs•Projectfinancing•

DAY 2: Economic indicators Economicindicatorsdefinitions•Present value concept•Discount factor•Net present value•Internal rate of return•Effect of project delay •Payback period•Profit/investmentratio•Incremental projects•Comparing economic indicators•

DAY 3: Risks and uncertainties Risk & uncertainty•Expected value concept •Decision tree analysis•Farm-out decision•Probability analysis•Sensitivity analysis•Spider and tornado diagrams•Probability distribution•Monte carlo simulation•

DAY 4: Setting up spreadsheet calculation Introduction to spreadsheet calculation•Simplecashflowusingexcel•

DAY 5 : Setting up oil field development model Setting up an integrated economic model of a typi-•caloilfielddevelopmentprojectincludingsensitiv-ity analysis

Training Methodology:The workshop will include a number of exercises aimed at enhancing each participant capability to conduct var-ious economic evaluations. In addition each participant will attempt to develop spreadsheet calculations of var-ious economic analyses. At the end of the workshop each participant will be given a comprehensive spread-sheet program that can carry out a complete economic evaluation including a sensitivity analysis. Additionally, the workshop assumes no or limited prior knowledge of the topics covered in the course. New concepts and tools are introduced gradually to enable delegates to progress from the fundamental to the advanced con-cepts of economic evaluation.

MainOffice

TUV Akademie Middle EastP O Box 46030Abu DhabiUnited Arab EmiratesTel : +971 2 4478500Fax : +971 2 4478558Email : me-akademie@tuv-nord.com

For any information or registration for the course, you can contact the Course Co-ordinator at the contact de-tails mentioned overleaf.

Contact Information

Course Fee

Fee : US$ 3,690 per delegate

Duration of course : 5 days

Date : 16 - 20 January 2011

Location : Dubai

Other Information

TUVAkademieCertificatewillbeissuedtoallat-tendees.

Course Fee mentioned is per delegate.

Avail an attractive 5% discount on course fee if you register 30 days before course start date.

Courses will be conducted during the designated dates at a 4 star or 5 star hotel in the designated city.

Payments to be made in advance. Exact venue ofthetrainingwillbenotifiedtwoweekspriortocourse start date.

This rate includes course notes, buffet lunch, cof-fee/teaonarrival,morningandafternoonofeachday.

Accomodation is not included in course fees. How-ever, any accomodation required can be arranged by TUV Akademie at time of booking.

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