Technical Petroleum Training Institute
Basic Petroleum Economics and Project Management –
Course Outline
Outline-1
Worldwide Petroleum Economics
Outline-2
Law and Legislation that relate to the Economic Analysis
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Economics Terminology
Outline-4
Principle of Hydrocarbon Pricing
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Project hurdle, Screening Criteria
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Identify the State of each types of Money (RT, MOD, PV, and FV)
 Money Stages using in the Economic Calculation/Principle
Real Time Money (RT)
Money Of the Day (MOD)
Present Value (PV)
Future Value (FV)
Outline-7
Depreciation Principle, Accounting treatment of expenditure
 Straight Line Depreciation Method
 Declining Balance Depreciation Method
 Sum-of-the-years’-digits Method
Outline-8
Cash Flow Elements and how to calculate
Outline-9
Discounting Process & Profitability Indicator Calculation (NPV, IRR, payback
period, etc.)
Outline-10
Sensitivity Analysis & Project Ranking
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Decision Tree Analysis
 Decision models; low probability, high consequence events; valuing
additional information and control; project threats and opportunities
Outline-12
Monte Carlo Simulation
 Latin hypercube sampling; portfolio problems; optimization;
advantages and limitations
 Monte Carlo simulation methods are especially useful in studying
systems with a large number of coupled degrees of freedom, such as
fluids, disordered materials, strongly coupled solids, and cellular
structures. When Monte Carlo simulations have been applied in space
exploration and oil exploration, actual observations of failures, cost
overruns and schedule overruns are routinely better predicted by the
simulations than by human intuition or alternative "soft" methods.
Outline-13
Decision Criteria and Policy
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Course Outline
Technical Petroleum Training Institute
Basic Petroleum Economics and Project Management –
Course Outline

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Value measures; multiple objectives; HSE; capital constraint; risk
aversion
These decision criteria consist of (1) screening criteria, which are used
to identify whether new projects meet initial acceptance requirements
and ensure that the project is reviewed at the most appropriate
organizational level, and (2) criteria for assessing and ranking all
projects. These ranking criteria weigh and compare the relative costs,
risks, and benefits of each project against all other projects
Outline-14
Modeling the Investment
 Influence diagrams; sensitivity analysis
Outline-15
Basic Probability and Statistics
 Four fundamental rules, including Bayes’ theorem; choosing
distribution types; common misconceptions about probability; avoiding
biases in estimation
 Bayes’ theorem prescribes multiplying the prior distribution by the
likelihood function and then normalizing, to get the posterior
distribution. As a formal theorem, Bayes' theorem is valid in all
common interpretations of probability. In the Bayesian interpretation,
probabilities are rationally coherent degrees of belief, or a degree of
belief in a proposition given a body of well-specified information.
Bayes' theorem can then be understood as specifying how an ideally
rational person responds to evidence.
Outline-16
Expected Value Concept
 Foundation in decision policy, pitfalls to avoid
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Types of International Petroleum Contracts
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Petroleum laws and regulations
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Petroleum Sale Agreement (gas, crude oil)
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Other important international contracts
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Understand the principles of project management
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Differences between managing a single large project and multi-projects
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How to identify the project risks and prevention methodologies
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How to cope with unpredictable results
 How to minimize risks of the project management
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Course Outline
Technical Petroleum Training Institute
Basic Petroleum Economics and Project Management –
Course Outline

Outline-25
Required skills of project manager - thinking framework, decision
making process, implementing ideas, controlling team and making
responsible to the results
Practices through workshop
COURSE PROGRAM
Course Overview
This course provides basic knowledge of Petroleum Economics.
Participants will understand the project commercial viewpoint and
understand the ideas of how to change the principle in order to get
better financial results. Also, participants will be able to run the
cash flow analysis with the project sensitivity in order to
understand the project viability and profitability impact under the
change of those project’s critical elements. Participants will learn a
practical, systematic process for analyzing decisions under
conditions of risk and uncertainty. Participants will learn to design
and solve decision models. Participants will also learn about
International Petroleum Contracts and Petroleum Project
Management Principles and Practices
Duration
5
Days
Max. Class Size
35
Participants
Venue
TPTI Bangpu Training Center 919/9 Moo. 2, Tambon Taiban,
Bangpu Samut Prakarn Province 10280 Thailand
Timing
8.30 a.m. – 16.30 p.m.
Instructor
Dr.Thitisak Boonpramote, Department of Mining and Petroleum
Faculty of Engineer, Chulalongkorn University
Mr. Michael G.Sypsomos, President of the Mentor Group,
International Ltd.,
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Course Outline
Technical Petroleum Training Institute
Basic Petroleum Economics and Project Management –
Course Outline
T e c h n i c a l P e t r o l e u m T r a i n in g I n s t i t u t e
1.
REGISTRATION FEES :
฿ 21,900
Registration Form
This fee includes 2 breaks and a lunch during the session days, instruction, and instructional materials,
but does not include 7% VAT, accommodation and transportation.
Basic Petroleum Economic &Project
Management– English Version -
2.
16-20 Nov 2009
Venue
-TPTI BangpuTraining Center
Bangpu, Samutprakarn
Enrollment Information : (Please print clearly.)
Family Name :
First Name ( Mr / Ms / Mrs ) :
Position :
Approving Manager :
Position :
Company :
Address :
Nature of Business :
Tel :
Fax :
E-mail :
Signature:
3.
Date:
Payment Method :
By cross cheque or bank draft payable to Technical Petroleum Training Institute
Mail your payment with this registration form to TPTI. Enclosed is the cheque / draft for Baht
By Address :The Department of Mineral Fuel 24th Floor, Shinawatra Tower III, 1010 Viphavadi-Rangsit Road,
Chatuchak, Bangkok 10900 Thailand.
Wire transfer into the account ofTechnical Petroleum Training Institute
Bank Name : Siam Commercial Bank Ltd., Branch : Ramatibadee Account No: 026-4-01533-4 or Swift Code: SICOTHBK
4.
THREE EASY WAYS TO REGISTER :
1.
FAX: 66 2 949 2330
2.
E-MAIL: [email protected]
3.
POST: Complete and return your form to: Technical Petroleum Training Institute
6th Floor, Shinawatra Tower III, 1010 Viphavadi-Rangsit Road,
Chatuchak, Bangkok 10900 Thailand.
Tel: 66 2 949 2330-1
Technical Petroleum Training Institute : Training Center
Technical Petroleum Training Institute : Head Office
6th Floor, Shinawatra Tower III, 1010 Viphavadi-Rangsit Road, Chatuchak,
The Department of Mineral Fuel 24th Floor, Shinawatra Tower III,
Bangkok 10900 Thailand.
1010 Viphavadi-Rangsit Road, Chatuchak, Bangkok 10900
Tel: 66 2 949 2330-1 Fax: 66 2 949 2330 E-mail: [email protected]
Thailand. Tel: 66 2791 8372-4 Fax : 66 2791 1730
http://www.tpti.org
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Course Outline