Financial and Economic Supplier Evaluation

Start Date End Date Venue Fees (US $)
21 Dec 2025 Istanbul, Turkey $ 4,500 Register
05 Apr 2026 Abu Dhabi, UAE $ 3,900 Register
26 Jul 2026 Istanbul, Turkey $ 4,500 Register
29 Nov 2026 Jubail, KSA $ 4,500 Register

Financial and Economic Supplier Evaluation

Introduction

The workshop will include a number of exercises aimed at enhancing each participant capability to conduct various economic evaluations. Each participant will attempt to develop spreadsheet calculations of various economic analyses. At the end of the workshop each participant will be given a comprehensive spreadsheet file that can carry out a complete economic evaluation including a sensitivity analysis.

Objectives

    This workshop provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. It covers the techniques which assist in making investment decisions. It also covers cash flow analysis, economic indicators, risk, and uncertainty. 

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Engineers, geologists, economists, accountants, technicians need to learn how to conduct an 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, Exploration, Production, Projects, Financing, and Technical Departments.

Course Outline

Cash Flow Analysis 

  • Cash Flow and Profit
  • Depreciation
  • Sunk Costs
  • Cash flow & Inflation
  • Depreciation and Escalation
  • Nominal and Real Cash Flow
  • Net After-Tax Cash Flow
  • Project Financing

Economic Indicators 

  • Present Value Concept
  • Discount Factors
  • Net Present Value
  • Interest & Inflation
  • Discounting & Deflation
  • Internal Rate of Return
  • Effect of Start-up Date
  • Payback
  • Discounted Profit/Investment Ratio
  • Comparing Economic Indicators

Risk and Uncertainty

  • Categories of Risk
  • Expected Value
  • Probability Analysis
  • Decision Tree Analysis
  • Farm-out Decision
  • Production Sharing (EPSA)
  • Sensitivity Analysis
  • Histogram Probabilities
  • Reserves Distribution
  • Monte Carlo Simulation

Accreditation

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