Economics of Unconventional Resources and LNG Projects

In collaboration with

ECONOMICS OF UNCONVENTIONAL RESOURCES & LNG PROJECTS

22 – 24 July 2015 | Brisbane | Australia

Your Expert Course Director:

TIM JAMES Principal Economist Robertson CGG Company – Beardall-Parry Department

Learn what others have commented about Tim James’s previous courses: Comprehensive, analytical & resourceful, Murphy Oil Corporation Ltd The presenter is knowledgeable and effective, PETRONAS Carigali Good and very clear, PTTEP Knowledgeable & enriching info to broaden our horizon, FPSO Ventures Comprehensive understanding of economics fundamentals, Murphy Oil Corporation Ltd Tim is a very accommodative coach. Thanks!, Salamander Energy Tim is the best trainer for this subject. Excellent!, Deloitte

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Conduct this training course in-house for more effective savings! Call us at +65 6741 9927 or email to [email protected]. For more information, visit us at

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ECONOMICS OF UNCONVENTIONAL RESOURCES & LNG PROJECTS 22 – 24 July 2015 | Brisbane | Australia

Course Overview

This 3 day course focuses on three main areas: A. The fundamentals of petroleum project economics, fiscal systems and valuation B. The economics of unconventional projects C. The economics of LNG projects

The first part of the course provides delegates with a thorough understanding of petroleum economics, fiscal systems and valuation techniques. We draw on Robertson’s extensive global database of fiscal systems in order to provide delegates with case studies. Techniques learnt are then applied over the next two days when the specifics of unconventional and LNG projects are discussed.

The unconventional part of the course discusses all the types of unconventional projects that are currently in operation around the world before moving on to the specifics of Shale Gas/Oil and Coal Seam Gas (CSG). We consider the characteristics of the reservoirs which in turn determine the development plan, facilities requirements and project economics.

LNG is a method of developing large gas structures providing flexibility of supply. It comes with its own unique characteristics around contracts, pricing and fiscal terms. Overall project economics can only be determined by considering project returns across the whole value chain. Delegates will partake in a modelling workshop to consolidate their understanding of this subject.

Delegates will be provided with electronic copies of all workshop solutions and examples. They will all have a comprehensive hard copy course manual. Who should attend? This three day practical course introduces delegates to petroleum economics and its application in both an unconventionals and LNG project setting.

It is suitable for delegates of all technical and commercial disciplines from oil and gas companies, governments, banks, legal and accounting organisations.

Notes for participants:

Delegates will be expected to have a working knowledge of Microsoft Excel and should bring a laptop to the course with

Microsoft Office or similar software.

Your Expert Faculty:

TIM JAMES Principal Economist Robertson CGG Company – Beardall-Parry Department

Tim has extensive oil and gas industry knowledge having worked in various economic, finance and commercial roles for 20 years.

Tim, a qualified Chartered Management Accountant, is currently Principal Economist in Robertson’s Petroleum and Reservoir Engineering Group based in Wallingford, Oxfordshire, UK. He has experience of fiscal jurisdictions and the commercial environment globally having undertaken numerous economic assignments ranging from the evaluation of farm in opportunities, licence round fiscal bidding advice and Competent Persons Reporting through to full corporate acquisition valuations.

Tim is an experienced economics trainer to the oil industry, national oil companies and governments directing regular petroleum economics, fiscal and risk courses globally.

Prior to joining CGG, Tim was Director of Economics for Beardall Parry & Associates economics consultancy, and before that was with Premier Oil for nine years, first in their Pakistan office and then as Commercial and Finance Manager for the NW Europe region. Experience at Premier Oil included a variety of project, commercial, asset management and finance roles covering areas such as field valuations for development, acquisitions and disposals, building economic models in both Microsoft® Excel and Merak PEEP®, management of gas contracts, management of budgets, statutory financial reporting and crude sales and marketing.

mailto:[email protected]




3-DAY COURSE OUTLINE

THE FUNDAMENTALS OF CASHFLOW ANALYSIS & VALUATION

INTRODUCTION Objectives of undertaking an economic analysis

What makes the oil and gas industry different?

Cashflow equations

DISCOUNTED CASH FLOW The time value of money, compounding & discounting

The cost of capital and the hurdle discount rate

Real vs Nominal Cashflows

Delegates Q & A CAPITAL BUDGETING TECHNIQUES Discounted and Undiscounted methods (PIR, Payback,

Exposure, NPV, IRR. DPIR)

When to use discounted / undiscounted techniques / what they mean

Valuing an asset, making development & investment decisions

Delegates Q & A GLOBAL FISCAL STRUCTURES The Tax & Royalty Fiscal Syste,

Production Sharing Contracts

The concepts of Government take

Service Contracts

Global case studies

Delegate Modelling Exercise

THE ECONOMICS OF UNCONVENTIONAL PROJECTS

INTRODUCTION TO UNCONVENTIONALS What is Unconventional Resource?

Unconventional Resources: Heavy Oil, Bitumen, Tight Gas, Coalbed Methane (CBM), Shale Gas, Shale Oil, Hydrates

The Economics of Unconventional vs Conventional Development / Production

Unconventionals Environmental considerations

UNCONVENTIONALS: SURFACE AND SUBSURFACE CONSIDERATIONS OF SHALE GAS / OIL The nature of Shale Gas reservoirs and how this

influences the economics of development

Shale Gas development planning & facilities requirements

Shale Gas Development Case Study FISCAL SYSTEMS IN AN UNCONVENTIONAL SETTING The unconventionals fiscal environment

Appropriate fiscal incentives to encourage development

Case Studies: US, Canada, Australia, UK

THE ECONOMICS OF LNG PROJECTS

The LNG process and costs

LNG pricing around the world

Calculation of the LNG netback price

Construction of the LNG economic model

Determination of transfer price between the Upstream project and LNG plant

Consideration of the returns to the LNG project versus the returns to the Upstream project

LNG WORKSHOP This workshop will be the consideration of an LNG project. Both upstream and midstream models will be constructed (in Excel ™). The total project economics will need to be calculated along with the fiscal take for each stage of the value chain. The splitting of the value chain in two or three parts will be considered in line with the calculation of the fiscal take for each stage and comparing this with total project returns. Summary & Closing Remarks

Registration & Entrance to training room will be open at 08:30hr with training session commencing at 0900hr daily. Lunch with 2 refreshment breaks will be provided daily for all delegates.

After the course delegates will be sent fully functioning electronic copies of the fiscal model solutions as well as all excel based examples studied during the course





EARLY BIRD NORMAL petroEDGE recognises the value of learning in teams. Group bookings at the same time from the same company receive the following: 3 or more at 5% off 5 or more at 7% off 8 of more at 10% All other promotions including early bird are exclusive of the group discount.

BRISBANE | AUSTRALIA 22 – 24 JULY 2015

AUD3,699

AUD3,899

In-House Training Yes, I would like to organise this training on-site and save on total course fees! For further information about On-site Solutions, please +65 67419927 or email [email protected]

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ECONOMICS OF UNCONVENTIONAL RESOURCES AND LNG PROJECTS

R E G I S T R A T I O N F O R M
