We are currently in the midst of one of the deepest downturns in the upstream industry in recent years. Challenging times are ahead for those looking to invest capital and grow their companies in this environment. Petroleum Economics is all about the allocation of scarce resources. Investment capital is certainly that scarce resource at the moment. In this environment, companies are looking for people to develop highly advanced skills in upstream petroleum economic and financial analysis

1. www.petroEDGEasia.net
ADVANCED PETROLEUM
ECONOMICS & RISK ANALYSIS
Your Expert Course Director:
Peter Wright
Principal Economist
Robertson CGG Company
Peter is currently Principal Economist with Roberson UK in the Petroleum Reservoir & Economics department. He manages
and makes contributions to various techno-economic studies, data room evaluations and Competent Persons Reports (CPRs)
in the UK, Italy, Egypt and Malaysia
in collaboration with

2. Conduct this training course in-house for more effective savings!
Call us at +65 6741 9927 or email to info@asiaedge.net. For more information, visit us at
www.petroedgeasia.net
ADVANCED PETROLEUM ECONOMICS & RISKS ANALYSIS
7 – 11 August 2017| Kuala Lumpur, Malaysia
Course Overview
We are currently in the midst of one of the deepest downturns in the upstream industry in
recent years. Challenging times are ahead for those looking to invest capital and grow their
companies in this environment.
Petroleum Economics is all about the allocation of scarce resources. Investment capital is certainly
that scarce resource at the moment. In this environment, companies are looking for people to
develop highly advanced skills in upstream petroleum economic and financial analysis to answer
questions such as:
 Which are my most profitable assets?
 Which regions of the world offer the best returns?
 Could this buyers’ market be one to take advantage of in our M&A activities?
 As an IOC (International Oil & Gas Company), is now the time to negotiate new terms with the
government? How do we do it?
 How can we compare projects to ensure capital is optimally utilised?
 How is the price downturn impacting our Profit & Loss Account and Balance Sheet?
 How can we optimally structure project finance
 If we could negotiate a 20% cost cut from our suppliers how does that impact the overall
economics of the project?
 What do the economics of LNG and Unconventionals projects look like?
This advanced economics course will provide a through insight into the world of upstream
petroleum economics and risk analysis to address these questions and many more.
This course covers some of the more advanced topics around oil and gas asset economics,
valuation, fiscal design and risk. It covers three main areas:
 Cashflow and corporate valuation
After a brief refresher of cashflow fundamentals, the topic is expanded to cover the
importance of both cashflow and accounting- based metrics in order to value assets for
acquisitions/divestments. To this end the accounting fundamentals around P&L account,
balance sheets and earnings are discussed, particularly where they interact with economics.
 Petroleum fiscal design
After a refresher of the fundamentals of tax/royalty, production sharing contracts and risk
service contracts, we aim to provide the delegate with an in-depth understanding of the fiscal
levers particularly those that are biddable or negotiated. The workshop is a team based
exercise: A “negotiation scenario” is played out where the team has to select a suitable set of
fiscal terms for the production sharing contract and argue its case.
 Risking techniques
The more advanced risking topics are discussed around sensitivity analysis, decision trees and
Monte Carlo simulation.
 Unconventionals and LNG
Unconventionals (shale oil and gas) and LNG are rapidly changing the dynamics of the oil and
gas industry. Petroleum economists need to have an understanding of how these sectors are
evolving and their potential impact, as wells as how to analyse typical opportunities and
projects. This module provides delegates with an introduction and basic understanding of the
key issues and drivers
Who Should Attend?
This 5 day practical course
is an ideal next step from
our introductory course
on upstream petroleum
economics and risk
analysis; ‘An Introduction
to Petroleum Economics
& Risk Analysis’.
Delegates should either
have attended this
course, or have had
meaningful exposure to
upstream petroleum
economics and risk
analysis in the work place.
Delegates should have a
reasonable knowledge of
Microsoft Excel ™ and
bring a laptop loaded with
Microsoft Office™ to the
course.
Who will you meet?
You will meet participants
from all technical and
commercial disciplines
from oil and gas
companies, governments,
banks, legal and
accounting organisations.
Course Materials
Delegates will be
provided with electronic
copies of all workshop
solutions and examples,
and a comprehensive
hard copy course manual.

3. Conduct this training course in-house for more effective savings!
Call us at +65 6741 9927 or email to info@asiaedge.net. For more information, visit us at
www.petroedgeasia.net
ADVANCED PETROLEUM ECONOMICS & RISKS ANALYSIS
7 – 11 August 2017| Kuala Lumpur, Malaysia
5 DAY COURSE AGENDA
DAY 1 DAY 2
THE FUNDAMENTALS OF CASHFLOW ANALYSIS & VALUATION
Discounted Cash Flow Refresher
 Cashflow Equations
 The time value of money, compounding & discounting
 Real vs Nominal cashflows
 Point forward/life cycle economics
Asset Evaluation Metrics
 Key economic metrics (NPV, IRR, DPIR, Payback)
 When to use discounted/undiscounted metrics/ what they
mean
 Valuing an asset, making development & investment decisions
 Delegate Q&A’s
Global Fiscal Systems
 The tax & royalty fiscal system
 Production Sharing Contracts
 Risk Service Contracts
 Global case studies across all three systems
 Delegate PSC modelling exercise
Fiscal Design
 Different methods of sliding scale (production, R-factors, rate
of return, hybrids)
 Step vs Incremental methods
 Understanding the issues around each method
 Selecting an appropriate sliding scale to influence activity
 Progressive vs Regressive systems
 Selecting an appropriate scale for ‘self-adjusting mechanism’
 Measuring and comparing government take
 Case Studies to illustrate fiscal
incentivisation/disincentivisation: Norway, Libya, UK, Bahamas
DAY 3 DAY 4
Fiscal System Design Workshop
A team exercise to set the terms in a production sharing contract. Terms
will have to meet corporate hurdles and need to be attractive to the host
government. This will be based on a Microsoft Excel model. Delegates
will be provided with sets of input assumptions and economic scenarios
on which to calculate suitable economic metrics and carry out
appropriate sensitivity analysis. Based on their analysis, the teams will
recommend a set of fiscal terms and argue their case.
VALUATION TECHNIQUES
Economics vs Financial Analysis
 Financial statements: P/L and Balance Sheet
 Financial metrics: (EBITDA, earnings, debt ratios)
 P&L: description of line items
 Balance Sheet: description of line items
 Successful Efforts vs Full cost accounting
 Impairment Test: The link between finance and reserves
reporting
 Conflicts arising between accounting accruals based and
economics cash based approaches
 Exercise to analyse company financial statements and assess
trends
CORPORATE VALUATION
Cost of Capital
 CAPM, Dividend valuation models
 Betas: leveraged and equity
 Adjustment of discount rate for risk: arguments for and against
 Real Option methodology
Valuation Methods:
 Understanding incremental & ringfence analyses
 Workshop Exercise: finding an appropriate acquisition price
 Drivers for acquisition and divestment
 Earnings multiples
 Enterprise Value (EV)
 Adjusted Present Value (APV)
Financing your Project
 Corporate Finance Outline
 Project Finance
 Reserves Based lending
 Tax implications
 Hedging
 Case Studies
Risking Techniques
 Brief overview of sensitivity analysis
 Tornado diagrams, decision trees and cumulative probability
plots
 Exercise: Balancing risk and return to optimize farm in
 Assessing Value of Information (VOI)
 Probability distributions
 Monte Carlo Analysis: method, advantages, limitations,
correlation (The Monte Carlo method will be demonstrated
using Crystal Ball™)

4. Conduct this training course in-house for more effective savings!
Call us at +65 6741 9927 or email to info@asiaedge.net. For more information, visit us at
www.petroedgeasia.net
ADVANCED PETROLEUM ECONOMICS & RISKS ANALYSIS
7 – 11 August 2017| Kuala Lumpur, Malaysia
DAY 5
Introduction to Unconventionals
 What is an unconventional resource?
 Unconventional resources: Heavy Oil, Bitumen, Tight Gas, Coalbed Methane (CBM), Shale Gas, Shale Oil, Hydrates
 The economics of unconventional vs conventional development/production
 Unconventionals environmental considerations
Fiscal Systems in an Unconventional setting
 The unconventional fiscal environment
 Appropriate fiscal incentives to encourage development
 Case Studies: US, Canada, Australia, UK
The Economics of LNG Projects
 The LNG process and costs
 LNG pricing around the world
 Calculation of the LNG netback price
 Construction of the LNG economic model
 Determination of transfer price between the Upstream project and LNG plant
 Consideration of the returns to the LNG project versus the returns to the Upstream project
Summary and Closing Remarks
After the course delegates will be sent fully functioning electronic copies of the fiscal model solutions as well as all excel based examples studied during
the course.
Your Expert Faculty:
Peter Wright
Principal Economist
Robertson CGG Company
Peter is currently Principal Economist with Roberson UK in the Petroleum Reservoir & Economics department. He manages and
makes contributions to various techno-economic studies, data room evaluations and Competent Persons Reports (CPRs) in the UK, Italy, Egypt and Malaysia.
Prior to 2013, he was an independent petroleum economist for 9 years. He dealt with all aspects of petroleum economics including commercial evaluations,
training, transaction support, economic or financial modelling, cost estimating and budgeting & forecasting. Projects evaluated have comprised both onshore
and offshore oil & gas fields, shale gas, FPSO investments, gas storage, carbon capture, pipelines, oil field rehabilitation, and refinery construction. His clients
included Petrofac, Senergy, RPS Energy, Blackwatch, PGS Reservoir, Mitsui, Marubeni Corp, Sumitomo Corp, FirstAfrica Oil, Rocksource and lastly Third
Energy. Before becoming an independent consultant in 2004, Peter was Director and petroleum economist with DS+A and Indeva Energy Consulants. Peter
has an MBA from Cranfield School of Management (1990) and a MA in Engineering, Downing College, Cambridge (1981). His key areas of expertise include
asset and company valuations, Competent Person’s Reports, financial and economic modelling, fiscal regimes, portfolio management and training. He is a
member of the Society of Petroleum Engineers (SPE).
What past participants have said about previous economics training courses by PetroEdge: -
“Very good course for non-economists for understanding the basics of Petroleum Economics & PSCs” Executive Analyst, PETRONAS
“Great course, has opened up my eyes and share a lot of light on many “grey areas” of my knowledge of the industry” Legal Executive, Brunei National Petroleum Company
“The course was an ideal introduction to the economics that drive the upstream Petroleum decision making process and the external influences that can impact upon these
decisions.” Middle East & Asia Pacific Regional Accounting Centres Director, Baker Hughes
“A good course and overview with a very knowledgeable trainer” Petroleum Engineer, APA Group
“General overview on Petroleum Economics & PSC modelling workshop brings enlighten and comprehensive understanding regarding the subject” Senior Project Engineer -
Project Management Division, SKK Migas
“PetroEdge courses are focussed and well designed to be applicable to a narrow-medium audience-therefore good value.” Sales Manager, CGG Multiclient & New Ventures
“A thoroughly interesting and comprehensive understanding of the practise of context of economics in the petroleum industry” Senior Compliance Officer, NOPTA
“This course has broaden my ideas on the production sharing concepts and I think it will be effective if applied in the Mining Industry” Policy Officer, Department of mineral
policy & Geohazards Management (PNG)

5. Conduct this training course in-house for more effective savings!
Call us at +65 6741 9927 or email to info@asiaedge.net. For more information, visit us at
www.petroedgeasia.net
ADVANCED PETROLEUM ECONOMICS & RISKS ANALYSIS
7 – 11 August 2017| Kuala Lumpur, Malaysia
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ADVANCED PETROLEUM ECONOMICS & RISK ANALYSIS
R E G I S T R A T I O N F O R M