By the end of this program, participants will be able to:

Industry & Value Chain Understanding

• Understand the end‑to‑end oil & gas value chain and how value is generated in each segment.
• Identify major cost drivers, revenue streams, and commercial structures across the chain.

Economic Evaluation

• Build and interpret discounted cash‑flow (DCF) models.
• Apply NPV, IRR, Payback, and Economic Limit calculations.
• Understand capital allocation, screening criteria, and project ranking.

Cost & Revenue Analysis

• Break down CAPEX, OPEX, variable costs, fixed costs, and lifecycle economics.
• Understand refinery margins, gas pricing, transportation tariffs, and product netbacks.

Risk & Uncertainty

• Conduct sensitivity testing for key uncertainties.
• Recognize market, operational, and financial risks affecting project value.

Strategic Perspective

• Understand how economics influence portfolio decisions, contracting, negotiations, and long‑term strategy.

This course is designed for:

• Engineers (reservoir, process, production, drilling, facilities)
• Economists & planners
• Finance, accounting, and budgeting professionals
• Business development & strategy teams
• Contracts & commercial specialists
• Government & regulatory staff
• Investors, analysts, and consultants working in the energy sector

No advanced mathematical background is needed; concepts are taught clearly and practically.

• Instructor‑led presentations with real industry examples
• Interactive discussions and problem‑solving sessions
• Group exercises simulating real project decisions
• Hands‑on financial modelling using basic Excel
• Case studies from upstream, LNG, pipelines, refining, and petrochemicals
• Daily short quizzes to reinforce learning
• Downloadable templates: DCF model, NPV/IRR calculator, cost breakdown sheets

DAY 1 – Foundations of the Oil & Gas Industry & Value Creation

Morning

• Overview of the global energy landscape
• The Oil & Gas value chain: upstream, midstream, downstream
• Where and how value is created along the chain
• Cost structure overview: capital intensity and lifecycle economics

Afternoon

• Types of costs: exploration, development, production, refining, transportation
• Revenue formation: oil pricing, gas pricing, product pricing
• Introduction to project economics: cash‑flow concepts
• Group Exercise: Build a simple value chain map for an oil field

DAY 2 – Upstream Economics, Costs & Revenues

Morning

• Exploration economics & risked vs. unrisked value
• Upstream cost structure (CAPEX, OPEX, abandonment, tariffs)
• Production profiles and their economic impact
• Fiscal systems (royalty/tax, PSC, service contracts)

Afternoon

• Building an upstream cash‑flow model
• Calculating unit technical cost, netbacks, and economic limit
• Exercise: Estimate the breakeven price for a sample field
• Case Study: Comparing two fiscal regimes

DAY 3 – Midstream & Downstream Economics

Morning – Midstream

• Pipelines, storage, LNG, and gas processing economics
• Tariffs, tolling fees, capacity utilization
• Gas market principles: contracts, indexation, netbacks
  
  

Afternoon – Downstream

• Refining economics: crude slate, yields, and margin drivers
• Petrochemical chains and integration value
• Transportation & marketing economics
• Exercise: Estimate refinery margin under different price scenarios
  
  

DAY 4 – Economic Evaluation Tools: NPV, IRR & Risk Analysis

Morning

• Time value of money
• Discount factors and cash‑flow discounting
• Calculating NPV and IRR (hands‑on practice)
• Interpretation and pitfalls of IRR

Afternoon

• Sensitivity analysis: price, cost, production, delays
• Scenario analysis: optimistic, base, pessimistic
• Introduction to risk and uncertainty in project evaluation
• Exercise: Assess uncertainty impacts on IRR
  
  

DAY 5 – Integrating Economics into Real Business Decisions

Morning

• Capital budgeting & portfolio management
• Screening criteria for oil & gas projects
• Commercial negotiations and value drivers
• Financing options and their impact on project economics

Afternoon

• Capstone Project: Evaluate a full oil & gas opportunity
• Build a DCF model
• Calculate NPV, IRR
• Conduct sensitivity analysis
• Present findings to an investment committee
• Course Review & Q\&A

Certification & Closing Remarks

CDGA attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration.