Early Bird Registration Deadline:
26 April 2015
Society of Petroleum Engineers
26–27 May 2015 | The Address Dubai Marina Hotel | Dubai, UAE
WORKSHOP
SPE Petroleum Economics:
Improving the Bottom Line Value in
a Challenging Global Market
Supported by:
Who Should Attend
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Economists
Corporate Planners
Decision Makers
Regulators
Sub-Surface and Surface Engineers
Geoscientists
Portfolio Managers
Business Analysts
Negotiators
Project Managers
Committee Members
Co-Chairperson
Blaise Fremaux
Gaffney, Cline & Associates
Abdul Jalil Zainul
PETRONAS
Sameh S. Abdulla
ADCO
Badar Al-Abri
Petroleum Development Oman
Hayder Obead Al-Moallem
ADCO
Aidah Al-Zahrani
Saudi Aramco
Douglas Carsted
Sproule Associates
Salva Clave
3esi Middle East
Rabih El Chaar
OXY
Lyrna Esmeralda-Hewitt
LR Senergy
Kirk Hanes
Palantir Solutions
Ramin Lakani
Halliburton
Wil Mos
Shell
Anina Mendez
Schllumberger
Hesham Ahmad Mubarak
KGOC
Usman Sethi
Schlumberger
Workshop Description
The significance of petroleum economics is to ensure and maximise the “Bottom Line Value” creation
through the exploitation of petroleum resources.
Given the challenging global markets, together with the volatile business landscape of the oil and gas
industry under the current low oil price environment, economic analysis needs to evolve to support
quality business decisions. The economic parameters, tools, fiscal, and contractual arrangement used
in the economic evaluation need to improve to further unlock and create value from the petroleum
resources. In addition, innovative fiscal and commercial solutions are required to deal with the future
chain of higher risk technical potential such as EOR/IOR and unconventional petroleum resources.
The 4th Annual SPE Petroleum Economics Workshop will continue to deliberate on the best practices
and methods that are used to effectively assess the value derived from petroleum resources. The
workshop topics are focused specifically on improvement of bottom line value under the current
challenging global market, low oil price environment, and high risk petroleum resources. Delegates
will also have the opportunity to understand key drivers in portfolio optimisation and the effective
fiscal terms and petroleum arrangements that are continuously required to attract investment to
explore, develop, and monetise the petroleum resources. In addition, the event will also provide ample
opportunity to network with fellow peers and exchange ideas on recent industry trends.
Workshop Objectives
This workshop aims to become a platform of discussion to share ideas in the domain of petroleum
economics for a wide range of industry professionals including practitioners of economics, corporate
business planning, decision making, regulation, legal, geosciences, engineering, and external
consulting.
It will address the existing and emerging practices on the valuation techniques/approaches that are
used during the process of conducting a wide range of petroleum economic assessments and taking
related decisions.
Sarika Varma
Heriot-Watt University
Jasper Weener
Dubai Petroleum
Abdel M. Zellou
T.D. Williamson
www.spe.org/go/economics
WORKSHOP
SPE Petroleum Economics: Improving the Bottom Line Value in a Challenging
Global Market
Gold Sponsor
Sponsorship Support
Sponsorship support helps offset the
cost of producing workshops and allows
SPE to keep the attendance price within
reach of operations-level individuals,
those who benefit most from these
technical workshops.
Sponsors benefit both directly and
indirectly by having their names
associated with a specific workshop
While SPE prohibits any type of
commercialism within the conference
hall itself, the society recognises that
sponsoring companies offer valuable
information to attendees outside the
technical sessions.
Sponsorship Categories
Sponsorships are offered on a first
come basis. Please contact SPE to
verify the availability of a particular
sponsorship. Existing sponsors have
the opportunity to renew the same level
of sponsorship for annual workshops
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Gold Sponsorship
Silver Sponsorship
Bronze Sponsorship
Welcome Reception and Dinner
Sponsorship
Speakers Gifts Sponsorship
Lanyards Sponsorship
Badge Sponsorship
Stationery Sponsorship
Luncheon Sponsorship—Per Day
Coffee Break Sponsorship—Per Day
Audio-Visual Equipment
Sponsorship
Sponsorship Benefits
In addition to onsite recognition; SPE
will recognise sponsors on the SPE
website and in all printed material
for the workshop. Based on the
sponsorship selected, sponsoring
companies also receive logo visibility
on promotional workshop items.
For More Information
For a detailed list of available
sponsorships, including benefits and
pricing, contact Regina Alphonso, event
manager, at [email protected].
SAVE USD 450 BY
REGISTERING BEFORE
26 APRIL 2015
26 May 2015
Coffee Break Sponsor
Monday, 25 May 2015
0800–1700 hours
One-Day Training Course:
Introduction to Decision Analysis: Using Decision Framing and Probabilistic
Analysis Techniques to Evaluate Complex Decision Problems
Course Instructor: Kent Burkholder, Decision Frameworks
Tuesday, 26 May 2015
0730–0800 hours
0830–0810 hours
0810–0830 hours
0830–0850 hours
0850–1010 hours
Welcome Coffee, Collection of Badges and Delegate Packs
Hotel Safety Briefing and Welcome by Co-Chairpersons
Opening Keynote Address
Distinguished Guest Speaker
Session 1: Macroeconomics and Global Geopolitical Outlook
Session Chairs: Blaise Fremaux, Gaffney, Cline & Associates; Omair Hameed, Schlumberger;
Hayder Obead Al-Moallem, ADCO
The global economy is going through a phase of uncertainty coupled with challenges related to political unrest, inflation,
unemployment, and social inequality. The oil and gas industry has to deal with these challenges along with recent fluctuations
in the oil price. Is the downward trend in commodity prices linked to over supply? What will be the future influence and role
of OPEC and the US? Will the shale development projects be put on hold in the short term? What will be the future strategy of
oil and gas companies and how will they efficiently balance their expansion plans, profitability indicators, and the competition
of resources? And what are the current challenges and priorities of companies operating in the Middle East?
This session will provide a forum for presentation and debate to answer the challenges mentioned above, including a
perspective of the different stakeholders including IOC’s, NOC’s, service companies, and financial institutions.
1010–1040 hours
1040–1110 hours
1110–1300 hours
Coffee Break/Group Photo
Open Discussion
Session 2: Decision Quality
Session Chairs: Badar Al Abri, Petroleum Development Oman; Wil Mos, Shell; Jasper Weener,
Dubai Petroleum
The oil and gas sector regularly faces complex decisions within complex organisational structures. This can result in
ineffective and inefficient decision making that risks leaving significant value untapped. “Decision Quality” is an approach
that aims to guide decision makers towards making the “right” decisions at the right time, without using more resources or
time than necessary. “Decision Quality” integrates the process of decision making across 6 elements: appropriate framing,
creative and doable alternatives, meaningful and reliable information, clear values and trade-offs, logically correct reasoning,
and commitment to action framed to reflect the audience (strategic, tactical, or operational). When implemented effectively
across an organisation, these steps can help decision makers to avoid falling into some of the common traps that often result
in eroding the value of decisions.
This session will focus on:
• The theoretical framework of “Decision Quality”
• Common traps and pitfalls in decision making
• The practical application of “Decision Quality” in the oil and gas sector
1300–1400 hours
1400–1550 hours
Luncheon and Prayers
Session 3: EOR
Session Chairs: Aidah Al-Zahrani, Saudi Aramco; Rabih El Chaar, OXY; Sameh S. Abdulla, ADCO
Oil companies have had a love/hate relationship with Enhanced Oil Recovery (EOR) techniques for the past few decades.
Many of these techniques are established and technically proven; however, most of them are costly to implement and operate.
In this session, we will investigate when is the right time for EOR application. Is EOR just a theme that comes up when oil
prices increase reflecting the aspirations of oil companies to increase recovery factors? Or is there a genuine case to prepare
an asset for EOR regardless of the short term oil price fluctuation?
This session will take a fresh look at EOR methods, focusing on the latest developments that might alter the economics of
these techniques. Some of these recent developments include:
• ClimatechangeandthemandatetocurbCO2 emissions—Will this provide a CO2 supply to enable the long list of CO2 EOR
potential projects worldwide to take off?
www.spe.org/events/15adu4
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Efficiency in harvesting solar energy—Can solar energy be used to supply steam for thermal EOR projects?
Shale oil boom—What are the possible commercial methods to improve the low recovery factor of shale plays?
Exotic EOR titles—Companies are branding chemical flooding techniques using attractive names such as designer water,
smart water, ultra-low IFT surfactants, and bright water to name a few. Are these techniques as economical and effective as
their marketing pitches claim, or is it all about the name?
EOR in giant oilfields—Are EOR techniques needed for giant oilfields at this time or more work such as infill drilling and
pattern water floods are required ahead of EOR applications? If they are necessary, how scalable are they? And how can
companies prepare to scale up in size and minimise costs?
1520–1550 hours Open Discussion
1550–1620 hours Day 1 Wrap-Up
1700–1800 hours Networking Hour
Wednesday, 27 May 2015
0800–0830 hours
Welcome Refreshments
0830–0920 hours
Session 4: Portfolio Management
Session Chairs: Salvador Clave, 3esi Middle East; Hesham Ahmad Mubarak, KGOC; Sarika Varma, Heriot-Watt University
This session will be interesting to all attendees, from economists and planners to asset managers, anticipating a wide spectrum of debate during the panel discussion from the
six papers presented. During the course of any petroleum economic evaluation, we consider the entire asset life cycle, the integrated value chain, the operational constraints,
the economic environment, etc. resulting in multiple operational and financial planning scenarios including sensitivity, risk, and uncertainty analysis. The results are delivered to
management for “Bottom Line Value” decision making. Best practices in this area include a “look-back” stage in order to scrutinise the overall post project economics in detail to
assist companies to continuously improve learning within their organisations.
0920–0950 hours Coffee Break
0950–1030 hours Session 4: Continued
1030–1100 hours Open Discussion
1100–1200 hours Session 5: Fiscal Regimes and Petroleum Contracts
Session Chairs: Kirk Hanes, Palantir Solutions; Usman Sethi, Schlumberger; Abdul Jalil Zainul, PETRONAS
The session will provide useful insights with regards to evolution of fiscal regimes and petroleum contracts, key roles of governing bodies, legal entities, and the industries to
cater to the current market outlook and challenging technical resources. The impact of reduced oil price to mobilise changes in fiscal terms as well as timeline for such changes
will be examined. The fiscal arrangement and petroleum contract is the host authority’s most important tool for managing petroleum resources in order to maximise its value.
The terms should provide flexibility, healthy competition, market efficiency, and fair return to the industry. It is mandatory for all managers and technical personnel in the
government and industry to understand the impact of the fiscal arrangement. The recent focus on how to achieve the balance between national interest and foreign investment
will be deliberated. Contractors must use accurate fiscal models to ensure they deliver to their shareholders. This session will also examine the key issues and current trends in
fiscal modelling in designing fiscal systems, it is important to create an alignment between the contractors and host government’s interests as well as make adjustments as the
field moves through the life cycle.
1200–1300 hours Luncheon and Prayers
1300–1340 hours
Session 5: Continued
1340–1410 hours Open Discussion
1410–1510 hours Session 6: Challenges of Developing Unconventional Resources
Session Chairs: Lyrna Esmeralda-Hewitt, LR Senergy; Ramin Lakani, Halliburton; Abdel M. Zellou, T.D. Williamson
The success of the shale gas revolution in North America has created an incentive for the rest of the world to chase this challenging hydrocarbon resource. In this session,
experts will explain the pitfalls and challenges faced by North American projects, where a wealth of experience exists and can be used to understand how technology can be more
effectively applied in other parts of the world. However, there are differences in both operating environments and gas markets between North America and the rest of the world,
which can impact project economics. To highlight these issues, the activities in exploring and developing the unconventional resources in Eastern Hemisphere will be shared with
the audience. Furthermore, developing unconventional resources involves a relatively high unit cost, which becomes a real challenge in the current volatile oil price environment,
and hence we will discuss how operating and service companies as well as regulators could cooperate to ensure economic viability of these projects.
1510–1540 hours
1540–1620 hours
1620–1650 hours
1650–1720 hours
Coffee Break
Session 6: Continued
Open Discussion
Workshop Wrap-Up
General Information
www.spe.org/events/15adu4
Workshop Venue
The Address Dubai Marina Hotel
P.O. Box 32923, Dubai, United Arab Emirates
Tel: +971.4.436.7777 | Fax: +971.4.436.7788
Web: www.theaddress.com
Email: [email protected]
Workshop Guidelines
Format
Two (2) days of informal discussions prompted by selected keynote presentations and discussions. Workshops maximise the exchange
of ideas among attendees and presenters through brief technical presentations followed by extended Q&A periods. Focused topics attract
an informed audience eager to discuss issues critical to advancing both technology and best practices. The majority of the presentations
are in the form of case studies, highlighting engineering achievements and lessons learnt. In order to stimulate frank discussion, no
proceedings are published and the press is not invited to attend.
Documentation
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Proceedings will not be published; therefore, formal papers and handouts are not expected from speakers.
Work in progress, new ideas, and interesting projects are sought.
Professionally-prepared visual aids are not required; however, PowerPoint presentations are most commonly used.
Note-taking by participants is encouraged.
Poster Session
The Steering Committee encourages registrations from professionals who are able to prepare and present a poster on a relevant project. For
further details kindly contact Regina Alphonso, event manager, at [email protected].
Breakout Session
Attendees may be randomly assigned to discussion groups to maximise the opportunity to interact with other participants.
Attendance
Registrations will be accepted on a first-come, first-served basis. The Steering Committee encourages attendance from those who
can contribute to the workshop most effectively either in discussions or with posters. A mix of attendees in terms of geographic origin,
companies and disciplines will be encouraged.
Workshop Deliverables
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The Steering Committee will appoint a “scribe” to record the discussions and to produce the full workshop report for SPE.
This report will be circulated to all attendees as the workshop deliverable within 4–6 weeks following the workshop. The copyright of
the report is with SPE.
PowerPoint presentation materials will be posted on a specific SPE URL address after the workshop. Provision of the materials by the
speakers will signify their permission for SPE to do so.
Commercialism
In keeping with workshop objectives and the SPE mission, commercialism in posters or presentations will not be permitted. Company logos
must be limited to the title slide and used only to indicate the affiliation of the presenter and others involved in the work.
Attendance Certificate
All attendees will receive an attendance certificate attesting to their participation in the workshop. This certificate will be provided in exchange
for a completed Workshop Questionnaire.
Continuing Education Units
Attendees of this workshop qualify for SPE Continuing Education Units (CEU) at the rate of 0.1 CEU per hour of the workshop.
Registration Information
This is a nonresidential workshop and therefore hotel accommodation is not included in the registration fees. The registration fees include all
workshop sessions, coffee breaks, and luncheons. Please refer to the registration form for registration fees.
Cancellation and Refund Policy
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A processing fee of USD 100 will be charged for cancellations received before the registration deadline of 26 April 2015.
For cancellations received after the registration deadline, 26 April 2015, 25% of the fee will be refunded to the registrant.
No refund on cancellations received within seven (7) days prior to the workshop date, i.e. on or after 19 May 2015.
No refund will be issued if a registrant fails to attend the workshop.
Registration Policy
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Registration fee MUST be paid in advance to attend the workshop.
Full fixed fee is charged regardless of the length of time that the registrant attends the workshop.
Fixed fee cannot be prorated or reduced for anyone (workshop co-chairpersons, committee members, speakers, discussion
leaders,students, and registrants).
Attendees are expected to attend all workshop sessions and are not permitted to attend on a partial basis.
Delegates with no proof of advance payment are required to pay onsite by cash or cheque, present a copy of the wire transfer, or submit
a letter from their company guaranteeing payment of the workshop fees.
SPE Training Course
Monday, 25 May 2015, Dubai, UAE
In conjunction with the
SPE Petroleum Economics: Improving the Bottom Line Value in a Challenging Global Market
Training Course Title
Introduction to Decision Analysis: Using Decision Framing and Probabilistic Analysis Techniques to
Evaluate Complex Decision Problems
Course Description
“I think of decision analysis as a formalisation of common sense for decision problems which are too complex for informal
use of common sense.” Ralph L. Keeney.
The oil industry is mired in complex decision problems, made even more challenging when we consider the diverse
opinions and objectives of all the stakeholders, both internal and external. This one-day course shows how using the
structured decision analysis workflow can help navigate the development and analysis of different go-forward strategies, to
enhance decision quality.
Define–Frame–Analyse–Decide
Individually, the four main steps that comprise “Decision Analysis” are relatively simple and straight forward. The power
comes from the structure. Attendees will be introduced to a step-wise approach to:
1. Define the decision problem, to ensure that the team and decision-makers have agreed the problem that
needs to be solved,
2. Frame the problem, to ensure that a wide variety of potential solutions has been considered upfront,
3. Analyse these solutions under uncertainty, to ensure the range and chance of possible events and
outcomes is included in the evaluation, and
4. Decide the optimal course of action, by considering the trade-offs involved between the possible solutions, to ensure that all the stakeholders are aligned.
Decision analysis is both a decision quality and efficiency tool. Decision quality is driven by improving the number and
diversity of possible solutions to any problem, by improving our analysis of those solutions to better understand the drivers
and trade-offs, and by improving the alignment of all the stakeholders through a decision-focused dialogue. Decision
efficiency is driven through the structure of the process by significantly reducing the number of times the teams get caught
in recycle and/or in analysis paralysis.
Topics Include:
• Defining the decision problem
• Using decision framing techniques to brainstorm possible go-forward strategies
• Using expert interviewing techniques to assess probability ranges and chance factors
• Using probabilistic analysis techniques to evaluate those strategies
• Using analysis insights to develop even better, hybrid strategies
Course Duration
0800–1700 hours
Course Instructor
Kent Burkholder is an advisor and consultant with extensive experience in strategy development, decision framing and
facilitation, and petroleum economics and risk analysis. For over twenty-five years, Burkholder has assisted oil and
gas companies around the globe in developing E&P strategies, from exploration, to production development, through
downstream, and into new technology. Burkholder is a professional engineer and member of the Society of Petroleum
Engineers.
REGISTRATION FORM
SPE Petroleum Economics: Improving the Bottom Line Value in a Challenging Global Market
26–27 May 2015 | The Address Dubai Marina Hotel | Dubai, UAE
Important: Attendance is limited and is not guaranteed. Early registration is recommended. Please print or type in black ink.
Registration Fee MUST be paid in advance to attend the workshop.
First Name/Forename _____________________________________________ Last/Family Name __________________________________________________
SPE Member?
❒ Yes ❒ No
Member No. __________________________________ Job Title __________________________________________________
Company/Organisation ________________________________Street or P.O. Box Number __________________________ City __________________________
State/Province __________________________________ Zip/Postal Code __________________________ Country __________________________________
Telephone ____________________ Facsimile ____________________ Email (required) _________________________________________________________
How did you first become aware of this event?
❒ Colleague (word of mouth) ❒ Section or Student Chapter ❒ JPT Ad ❒ Industry Publication
❒ Email from SPE ❒ SPE Website ❒ Other Industry Website ❒ Brochure Received by Mail ❒ I am a Committee Member/Presenter
❒ Employer ❒ An Exhibitor ❒ Others (please specify) ______________________________________________________________________________
Before 26 April 2015
After 26 April 2015
WORKSHOP
Registration Fees
❑ Workshop Only
SPE Member
Nonmember
SPE Member
Nonmember
❑ USD 1,150
❑ USD 1,350
❑ USD 1,600
❑ USD 1,800
❑ Training Course Only (25 May) - Introduction to Decision Analysis: Using Decision
Framing and Probabilistic Analysis Techniques to Evaluate Complex Decision Problems
❑ Training Course with Workshop
❑ USD 750
❑ USD 1,400
❑ USD900
❑ USD 1,600
❑ USD 2,100
❑ USD 2,300
Workshop Fee includes: Technical sessions, daily coffee breaks and luncheons, certificate of Continuing Education Credits (CEU), welcome reception and dinner
(if applicable). Accommodation is NOT included in the workshop registration fee.
IMPORTANT: All SPE Middle East rates are net of taxes. The fees in this form do not include any local or withholding taxes. All such taxes will be added to the
invoice.
Do you wish to present a poster? (subject to selection)
Do you wish to be considered a Discussion Leader? (subject to selection)
❒ Yes
❒ Yes
❒ No
❒ No
If yes, please indicate which subject you would like to present on: _______________________________________________________________________
Credit Card (Check One):
❒ American Express ❒ MasterCard ❒ Visa
NO REFUNDS will be granted on cancellations on or after 19 May 2015.
Card Number (will be billed through Society of Petroleum Engineers)
Expiration Date (mm/yy)
Security Code
Name of Credit Card Holder (printed) ________________________________________________________________________________________________
Signature (required) __________________________________________________________________________ Date ______________________________
Please inform us of mobility or special dietary needs ____________________________________________________________________________________
Payment by Bank Transfer: IMPORTANT—For reference: Please quote “15ADU4” and name of delegate
Make Payment to: HSBC Bank Middle East Ltd, Jebel Ali Branch, P.O. Box 66, Dubai, UAE
Account Name: SPE Middle East DMCC Account Number: 036-217131-100 Swift Code: BBMEAEAD
IBAN Code: AE180200000036217131100
Cancellation and Refund Policy:
•AprocessingfeeofUSD100willbechargedforcancellationsreceivedbeforetheregistrationdeadline26April2015.
•Forcancellationsreceivedaftertheregistrationdeadline,26April2015,25%refundwillbemadetotheregistrant.
•Norefundoncancellationsreceivedwithinseven(7)dayspriortotheworkshopdate,i.e.onorafter19May2015.
•Norefundwillbeissuedifaregistrantfailstoattendtheworkshop.
Not an SPE Member?
Join SPE when you register and
save money by paying the lower
member registration fee.
A portion of your dues is
allocated to a JPT subscription
and is not deductible or refundable.
Visa:
SPE Middle East, North Africa, and South Asia will assist in providing a visa invitation letter, upon request in writing, to confirmed registrants after receiving full payment of registration
fees. Visa invitation letters take five days to issue from the date of request and it is the course attendee’s responsibility to obtain their own visa. SPE cannot issue the visa nor can we
guarantee it will be obtained.
For questions or additional information contact: Regina Alphonso, event manager, at [email protected].
15ADU4
To submit your registration online, please visit the event website at: www.spe.org/events/15adu4
Alternatively, you can email this form to: [email protected], or fax it to: +971.4.457.3164.