Expanded Petroleum Economic

Bogor, 15 – 18 Mei 2016  Bogor, 26 – 29 Agustus 2016  Bandung, 11 – 14 Oktober 2016  Yogyakarta, 08 – 11 2016

Course Summary

This course is to summarize the state of the art of Petroleum Economics Concept Based on Engineering Economics. It included the example problems to illustrate the use of various theoretical solutions. In this course we will discuss the time value of money concepts, different types of interest arrangement, converting cash flows (cash inflows or outflows) from one period to another, methods used to select the best economic service producing investments, methods used to select the best economic revenue producing investments (mutually exclusive and non-mutually exclusive), the development of after-income tax cash flows, expected value concept and other useful statistical techniques.

All of concepts in this course are presented in a hands-on manner. You may be already reasonably familiar with some of the concepts; in which case, you may skip those and proceed to the ones that you are not familiar with. You will notice that most of the methods presented if properly used, will give the same results. The reason for including so many methods is to complete the presentation. In some cases it may be advantageous to use on method over the other. Therefore, it is necessary that you be familiar with all of the methods presented.

This course compiled as aid to engineers and production people in the Petroleum Industry who have the responsibility of planning and decision making in oil or gas field development. It includes fundamental principles of engineering economics used in petroleum industry. It also included the tables, data and general information which it will be value to everyone who responsible to make decision making in petroleum economics domain.

Much material of this course has been published previously and is reassembled in this course. However, there is also a considerable amount of new material included that will assist the participants. In this course, it has also included example problems to illustrate the use of various theoretical solutions. Wherever possible, it has not only discussed practical difficulties that one may encounter while using the theoretical solutions, but it has also listed some of the method that one can used to obtain the desired information.

This course is mainly directed to the practicing professionals who make engineering calculations and decision on oil and gas field development. For managers, the course helps to review the present state of the art of petroleum engineering economics used for decision-making according to field economics parameters.

Course Outline

Reserve and Hydrocarbon Reserve Exploitation

·         Basic Concept

·         History of Reserve Definition

·         Reserve Classification

·         Reserve Calculation

·         Proved Reserves Guidelines Improved Recovery

Time Value of Money Concepts

·         Hydraulic Fundamentals

·         Time Value of Money

·         Simple and Compound Interest

·         Present Value of Future Sum

·         Present Value of Annual Sums

·         Annual Equivalent of Future Sums

·         Annual Equivalent of Present Sums

·         Present Value of Deferred Annuity

·         Arithmetic gradient Series

·         Capitalized Cost Calculations

·         Continuous Compounding and Discounting

·         Determining Interest Rates

·         NPV, NAV, and NFV Computations

·         Rate of Return (ROR) Calculations

Comparison of Service Producing

Investment

·         PV, AV, and FV of cost analysis

·         Rate of return Analysis

·         Service Life Breakeven Analysis

·         Unequal Life Service Producing Alternatives

Analysis of Income Producing Investments

·         Single Independent Investment Analysis

·         Mutually Exclusive Investment Analysis

·         Non Mutually Exclusive Investment Analysis

Depreciation

·         Straight Line Depreciation

·         Declining Balance Depreciation

·         Sum of Years `Digits Depreciation

·         Accelerated Cost Recovery System (ACRS)

·         Modified Accelerated Cost recovery System (MACRS)

After-Tax Cash Flow Analysis

·         Amortization and Depletion

·         Investment Tax Credits (ITS)

·         Intangible Drilling Costs (IDC)

·         Minimum Tax and Tax Preference Items

·         After-Tax Cash Flow

Expected Value Concepts

·         Definition of Probability

·         Expected Net Present Value (ENPV)

·         Expected Present Value Ratio (EPVR)

·         Expected Net Present Value Profile

·         Decision Tree Analysis

Equations and Mathematical Techniques

·         Regression Analysis

·         Mean, Variance, and Standard Deviation

·         Normal Probability Distribution

·         Log-Normal Probability Distribution

·         Solving Problems Requiring Trial-and-Error Calculation

How to Choose the Alternatives

·         Investment Analysis

·         The Role Depreciation

·         Taxes

·         Project Financing

·         The Effect of Inflation

·         Decision Making

·         Monte Carlo Simulation

Course leader:

Arsegianto, He is a Doctor at Department of Petroleum Engineering of The Institute Teknologi Bandung, Indonesia. He earned his Master of Science from University of Wisconsin, Madison (USA) at Department of Urban and Regional Planning in Major Energy Analysis, Policy and Planning. He obtained his Doctor from Asian Institute of Technology, Division of Energy Technology in Bangkok, Thailand. He has been delivering training course in Economic, Finance, Marketing, Policy and Planning Analysis of Petroleum & Gas Industry since 1992. He also has expertise in technical petroleum engineering. His professional experiences include contributing author in many congresses, conventions, exhibitions, seminars, workshops, symposiums & conferences. His current membership of the International Association For Energy Economics (IAEE), Society of Petroleum Engineering (SPE), Society of Indonesian Petroleum Engineers, & Komite Nasional Indonesia – World Energy Council (KNI-WEC).

General Information

Facilities

ü  Quality training material (hardcopy and softcopy)

ü  Quality training kits

ü  Morning and afternoon coffee / tea breaks and lunch for along the training

ü  Certificate of Completion

Tuition Fee & Registration  Deadline

IDR 9.750.000,-/ Person, (exclude Ppn 10% & Acomodation)

Registration and payment deadline a weeks before training held.

For Further Information and Registration Please Contact
Anni Nuraini         +62 812 807 1412
Hilmi Atoillah       +62 856 467 179 04

Ika Ratnawati       +62 813 1996 6720