Petroleum Economics and Contracts
About this course

Overview

Contract terms decide who captures the value long before the first barrel. This covers production sharing contracts and fiscal regimes across African basins, and the economic evaluation that turns those terms into an investment case.

What you will be able to do

Learning outcomes

  • Compare concession and PSC fiscal structures
  • Understand cost recovery and profit sharing
  • Evaluate a project using NPV and IRR
  • Analyse fiscal sensitivity and government take
  • Support upstream investment decisions commercially
What the course sets out to do

Course objectives

  • Explain common petroleum fiscal regimes
  • Interpret production sharing contract terms
  • Build and read a project cash flow model
  • Apply economic indicators to investment decisions
  • Assess how fiscal terms shape project value
Course content

Modules

01

Fiscal regimes overview

Concessions, PSCs, and service contracts and how each shares value.

02

Production sharing contracts

Cost recovery, profit oil, and key PSC mechanics.

03

Petroleum economics basics

Cash flow, discounting, and the economic life of an asset.

04

Investment evaluation

NPV, IRR, and payback for upstream projects.

05

Government take and sensitivity

Addresses how fiscal terms affect returns under different scenarios.

06

African basin context

Applies the concepts to the fiscal realities of African upstream projects.

Who it is for

Target audience

Commercial, strategy, and technical staff involved in upstream investment, negotiation, and economic evaluation.

Before you start

Prerequisites

A commercial, technical or government role in the petroleum sector.

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