SPE to hold Petroleum Economics and Fiscal System Analysis workshop in Lagos

The Society for Petroleum Engineers, Nigeria Council is set to organise Practical Petroleum Economics and Fiscal System Analysis Workshop which is Hybrid (Virtual and Physical) come July 30-31, in Eko Hotels & Suites, Lagos.

“Petroleum business decisions come with a strategic assessment of investment rewards alongside the fundamental determinants of investment outcomes, such as oil and gas reserves, production capacity, technical cost profiles, oil and gas price dynamics, insecurity, and fiscal regimes using spreadsheet DCF modeling techniques. This two-day course covers cash flow components and analytics, and the mechanics for projecting economic indicators for petroleum project screening and ranking using computer-based tools, which may affect investment.  Further, the course describes the key elements of the Petroleum industry Act, PIA 2022; and use a deterministic DCF spreadsheet modeling tool to evaluate the effects of PIA 2022 on E&P Economics, IRR or PI, and government access to revenue, GAR, in Nigeria”, SPE said.

The Organisers listed the seminar objectives to include facilitating good understanding of oil & gas economic evaluation components and mechanism, identify the main components and construct of cash flow projections for petroleum projects and build a deterministic spreadsheet discounted cash flow model and applying a deterministic spreadsheet model to evaluate PIA 2022 fiscal instruments and contract terms after a discourse on the key components of the PIA.

The PRELIMARY DAILY AGENDA are as follows:

Day 1–Morning:  Oil and Gas Industry in Nigeria and Upstream Project Economics & Evaluation

• Overview of the oil and gas industry in Nigeria and the economics of petroleum resources
• Tea Break
• Elements and determinants of petroleum E&P investment decisions—resources, reserves, and production forecasting

DAY 1–Afternoon: Deterministic Modeling & Economic Analysis of Petroleum Projects

• Capital budgeting techniques and incremental economics—deterministic model building and applications of profitability indicators for project screening and ranking
• Break
• Syndicated Exercise:  Petroleum production and revenue forecasting using spreadsheet applications and discounted cash flow modeling applications and incremental economic analysis.

 DAY 2–Morning:  International Petroleum Arrangement & Analysis of PIA 2022 Fiscal Framework

• Descriptions & classification of worldwide petroleum arrangements
• Break
• Descriptions and evaluation of PIA 2021 and its components.

 DAY 2–Afternoon:  Syndicate Exercises on PIA 2022 Fiscal Framework

• Modeling and analyzing of fiscal instruments and contract terms affecting E&P profitability: the case of PIA 2022 royalty and tax systems
• Lunch Break
• Modeling and analyzing fiscal instruments and contract terms affecting E&P profitability: the case of PIA 2022 contractual fiscal terms.