PDP - ACCOUNTING, FINANCE AND COMMERCIAL

 

AFC-106 BUSINESS PLANNING AND FINANCIAL PROJECTION

This course is intended at helping engineerings and technical professionals plan and forecast the business through developing fact-based financial scenarios. The key is through proper understanding of the commercial/economic drivers and how the businesses decisions were implemented that lead to optimal resource allocation while still meeting the petroleum production, development or exploration goals.

 

Topics:

  1. Forecasting oil production

  2. Defining: reserves, operating expenses, capital expenditures, inflation, factors effecting oil and gas prices

  3. Cash flow techniques

  4. Economic criteria: interest, hurdle rate, time value of money, selection, ranking criteria

  5. Risk, uncertainty: types of risk, mathematical techniques, probabilistic models, uncertainty in economic analysis

  6. Financing, ownership in the oil and gas industry: business arrangements between operators, between mineral owners

  7. Accounting versus cash flow: accounting principles and definitions, differences between accounting cash numbers, depreciation, depletion, and amortization (DD&A)

  8. Budgeting and Forecasting: types, processes, selecting of projects for the budget

  9. Economic analysis of operations & maintenance (O&Ms)

  10. Business ethics in technology/economic analyses