IHRDC
Petroleum Project Economics
and Risk Analysis
O V E R VI EW
During this five-day program
participants will learn, in a practical
and realistic manner, how to analyze
the financial performance of oil and gas
investments from both the project and
corporate reporting perspectives. They
will be asked to build financial models
for typical oil and gas projects and
then identify and incorporate all major
risks into the analysis. A major part of
the learning is achieved through team
participation in a challenging business
game where they must present their
team’s recommendations to the Board.
WHO SHOULD ATTEN D
This program is designed specifically for
energy managers, supervisors, and key
employees from broad functional areas,
such as finance, technology, and project
development who wish to expand
their knowledge of investment and risk
analysis in managing, developing, and
reporting on energy projects, financial
modeling, and petroleum project
economics.
INS T R UCTI ON AL FORM AT
The instructional format consists of
lectures by a respected specialist and
team participation in a classic IHRDC
business game. The business game
typically takes almost one half of the
instruction time and is highly rated for
its effectiveness in internalizing learning
and generating discussion among team
participants. In addition to the lectures
and business game, this course will
utilize additional exercises and case
studies to further enrich the classroom
experience. This method of blended
learning has proven to be an ideal
way for participants to learn the
practical needs of today‘s international
energy markets.
JULY 9–13, 2018
BALI, INDONESIA
L E C TU R E CO N T EN T:
Introduction to Petroleum Economics and Energy Business Environment
Introduction to Financial Statements and Measures of Performance
Project Management Fundamentals
Energy Project Economics and Measures of Performance
Project Financing: Commercial Debt Finance
Energy Project Risk and Uncertainty
Probability Theory and Quantitative Analysis
Decision Tree Analysis
Monte Carlo Simulation
Portfolio Theory and Real Options
Stakeholder Impact Assessment and Analysis
Managing Price Risk Using Financial Derivatives
W OR KSH O P:
Oceana: Asia Onshore Business Game
This business game is an integral part of the learning
process. Participants, working in teams, will evaluate
an oil and gas business opportunity in the Republic of
Oceana, near Indonesia. They build a financial model that
will integrate various risks associated with the investment.
This model will utilize a proposed Production Sharing
Agreement and incorporate revenue, capital and operating
costs, financing costs, and tax projections for the life of the
project. Throughout the program teams will add layers of complexity to the model by incorporating
different risk analysis tools presented in the lectures. The teams will present their project analysis to
a decision review board by outlining the risk profile and expected performance measures of the
project. They then learn the outcome of those decisions. Emphasis will be placed on the practical
implementation of the tools presented and on developing practical financial modeling skills.
The workshop sessions include:
• Modeling the production sharing agreement
• Building the base case pro forma financial statements
• Calculating standard measures of performance
• Sensitivity and scenario analysis
• Decision trees and expected monetary value; Monte Carlo simulation
• Project selections, stakeholder and financial analysis
• Simulation of team investments in the economic environment
• Evaluation of performance and presentation of results
 2

INSTRUCTORS
For this program there will be a senior lecturer. He will be assisted by a Workshop Facilitator who will direct the business simulation sessions.
Their backgrounds are as follows:

Rick Squires, an IHRDC Senior Lecturer, is the founder of PiEnergy, which provides consulting services to the energy industry.
He has extensive experience in the international energy sector at the senior management level across a wide range of activities
and fuels. Mr. Squires currently holds four non-executive directorships related to the energy business, including the $1.5 Bn fund
managed by the U.K. Green Investment Bank. He was Non-Executive Chairman of a U.K.-based offshore hybrid gas and wind
power company (250 MW), which was sold to a major European power utility. For four years, until early 2003, Mr. Squires was
based in Boston, U.S., as Senior Vice President of InterGen, an international power company with 16 GW of power plants in ten countries. Prior
to joining InterGen, Mr. Squires headed the Power Business within Shell Gas and Power, London. His career in Shell spanned over 25 years
and included senior management positions in International Oil Trading, Shipping, Coal Business Development, and Marketing. While principally
based in London, he also had assignments with Shell companies in South Africa and Japan. Before joining Shell, he worked for the South
Western Electricity Board in the U.K. Mr. Squires holds a First Class Honours Degree in Electrical Engineering and a Masters Degree in Business
Studies. He is a member of the Institute of Engineering and Technology, the Institute of Directors, and the Energy Institute.

Dr. Erhan Aslan is a Learning Simulator Specialist and Program Facilitator at IHRDC. Dr. Aslan began his career in Abu Dhabi as
a reservoir engineer at Kelkar and Associates and was involved in multiple projects on reservoir development and characterization
for fields in the Middle East and Russia. In 2006, he relocated to Tulsa, Oklahoma for his M.S. in Upscaling of Tight Gas
Reservoirs within the Petroleum and Natural Gas Engineering department at the University of Tulsa. He then attended Pennsylvania
State University, graduating in August 2013 with a Ph.D. in Petroleum and Natural Gas Engineering. His thesis was entitled
Development of an Advanced Coalbed Methane (CBM) Numerical Reservoir Simulator. During his studies at Penn State and the
University of Tulsa, he taught classes on Drilling Fluids, Production Engineering, Well Testing and Evaluation, Numerical Reservoir Simulations, and
Rock and Fluid Properties for graduate and undergraduate students. He received the Outstanding Graduate Assistant Award from Penn State in
April 2013. His areas of interest include reservoir characterization, development of numerical reservoir simulators, unconventional gas reservoirs,
parallel programming, and static and dynamic reservoir simulation modeling.

PROG R A M L O CAT I O N AN D S C H E D UL E
The program will begin on the first day with registration at 7:30 am and end at 5:00 pm on the last day. Participants may be asked to
stay later on some of the first few evenings to complete workshop sessions. Hotel details will be provided upon registration.

Enrollment Fees: BALI, INDONESIA US$3,500 + VAT charges will be added where applicable.

Enrollment Code: WEB18

PLEASE ENROLL ME IN: PETROLEUM PROJECT ECONOMICS AND RISK ANALYSIS
Please use the Enrollment Code above

q Bali, Indonesia (July 9–13 2018) when enrolling to this workshop.

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TO REGISTER PLEASE CONTACT:

LOCAL INDONESIA CONTACT:
Debbie Taylor, Program Operations/Registrar D avid Koes, IHRDC Representative
Email: registrar @ ihrdc . com Phone: +1.617.447.2258 Email: dkoes @ ihrdc . com Phone: +62.811.806809

IHRDC/CORPORATE HEADQUARTERS
535 Boylston Street, 12th Floor Boston, MA 02116 USA Tel: 1.617.536.0202 Fax: 1.617.536.4396 Email: workshops@ihrdc.com