Global Learning for Operational Leaders
Classroom
14 sessions
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Online / Live
14 sessions
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Introduction
Course overview
Every investment decision in the oil and gas industry depends on economic analysis that combines technical forecasts, prices, costs and the fiscal terms imposed by host governments. Understanding how fiscal regimes affect project value is essential for companies, governments and investors alike.
This Aractech course provides a practical grounding in petroleum economics, covering cash flow modelling, discounting, investment criteria, risk and uncertainty analysis, and the main types of fiscal regimes including concessions, production sharing contracts and service contracts. Participants build and analyse economic models and compare how different fiscal terms change project returns for companies and governments.
The course balances concepts with hands-on spreadsheet work so that participants can apply the techniques in their own roles.
What you will achieve
Learning objectives
- Build cash flow models for oil and gas projects
- Apply NPV, IRR and other investment criteria
- Analyse risk using sensitivity, scenario and probabilistic methods
- Explain concession, production sharing and service contract regimes
- Calculate government take and company returns under different terms
- Support investment and negotiation decisions with economic analysis
Who should attend
Target audience
- Petroleum economists and financial analysts
- Engineers and geoscientists involved in project evaluation
- Commercial and business development professionals
- Government and regulatory officials
- Finance and planning managers in energy companies
- Investment and banking professionals
Methodology
Learning approach
- Concept sessions with worked examples
- Hands-on spreadsheet modelling
- Fiscal regime comparison exercises
- Case studies of real investment decisions
- Group presentations of economic evaluations
Complete course outline
Five focused days of learning and application
The timings provided are estimates and may vary depending on the number of participants and the discussions taking place during the sessions. They are indicative only and do not constitute a binding commitment.
Day 1
Foundations of Petroleum Economics
- Role of economics in the oil and gas business
- Time value of money and discounting
- Cash flow components: revenue, capex, opex and tax
- Price and cost forecasting
- Coffee break
- Price and cost forecasting (continued)
- Inflation and exchange rates
- Exercise: Building a simple project cash flow
Day 2
Investment Criteria and Decisions
- NPV, IRR and profitability index
- Payback and capital efficiency
- Ranking and selecting projects
- Portfolio considerations
- Coffee break
- Portfolio considerations (continued)
- Common pitfalls in evaluation
- Lab: Evaluating competing development options
Day 3
Risk and Uncertainty
- Sensitivity and break-even analysis
- Scenario analysis
- Probabilistic methods and expected value
- Decision trees for exploration
- Coffee break
- Decision trees for exploration (continued)
- Value of information
- Exercise: Risked economics of an exploration prospect
Day 4
Fiscal Regimes
- Concession and royalty-tax systems
- Production sharing contracts
- Service and risk service contracts
- Government take and fiscal progressivity
- Coffee break
- Government take and fiscal progressivity (continued)
- Stability and ring-fencing
- Workshop: Comparing fiscal regimes
Day 5
Applying Economic Analysis
- Economics in negotiations with governments
- Economics of mature fields and late-life assets
- Energy transition and carbon costs in economics
- Presenting results to decision-makers
- Coffee break
- Presenting results to decision-makers (continued)
- Best practice in model review
- Capstone: Full economic evaluation of a case project
FAQ
Frequently asked questions
What does Petroleum Economics and Fiscal Regimes (OG-029) cover?
This course covers Oil and Gas through a structured five-day outline focused on practical application, discussion, and implementation planning.
When is the next available session?
The next scheduled session starts on 2 - 6 November 2026. See the course schedules section for the available dates and delivery formats.
Who should attend this course?
Petroleum economists and financial analysts, Engineers and geoscientists involved in project evaluation, Commercial and business development professionals
Is bilingual course delivery available?
Yes. All course materials and presentations are provided in English, while bilingual explanation and discussion support may be available depending on the selected location and trainer availability. For example, when attending a course in Istanbul, you may request a Turkish-speaking trainer to explain the English course content in Turkish. Arabic explanation support may also be requested at this location. Other languages are available in selected cities. You can choose your preferred language support as an optional preference during registration.
How can I register for a session?
Use any Register button next to the available course dates to open the participant registration page and submit your booking request for the selected session.
Is this course available online as well as classroom-based?
Check the course schedules section for currently published classroom and Online / Live sessions.
Where are classroom sessions delivered?
Current classroom venues include Frankfurt, Barcelona, Rome, Kuala lumpur, London.
How long is the training programme?
The programme runs for five days from 09:00 to 14:00, which gives 25 contact hours, including a daily 30-minute break (22.5 hours of instruction).
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