Valuation and Risk Analysis of Oil & Gas Assets

COURSE OUTLINE INTRO TO ASSET AND VALUATION Definition of Oil and Gas Assets Why is valuation important? Physical and Monetary Asset Accounts The Investment Decision and lifecycle of E&P activities Investors & Host Country Business Views Introduction to PSC and its Terms ASSET ECONOMIC VALUATION METHODOLOGY Present Value Net Present Value Payback Period Internal Rate of Return Investment Efficiency Project Life Cycle Cash Flow Capital and Operating Expenditures OIL AND GAS ACCOUNTING BACKGROUND AND METHODS Successful efforts and full cost accounting Interests Accounts (i.e. royalty, working interest, overriding royalty interest) Classification and Treatment of costs Acquisition and Retention Costs Exploration and Development Costs Amortization of Proved Property Costs Disposition of Oil & Gas Assets Impairment of Oil & Gas Assets Asset Retirement Obligations Revenues and Production Costs DD&A rules MINIMIZE RISK AND MONETIZE THE OPPORTUNITY IN STRATEGIC INVESTMENTS Options in Exploration & Production (E&P) Option to Delay (Timing Option) Abandonment Option Option to Expand the Production Types of Uncertainties in E&P Technical Uncertainty Economic/Market Uncertainty Strategic Uncertainty Revelation of the true value Valuation of Exploratory Prospect Prospect Valuation and Revelation Prospect Valuation under Uncertainty REAL OPTION MINDSET Valuation is as Real Options Mindset Real Options as a Series of Decisions Applications of Real Options Mindset Real Options: Change the perception of value Linking Value Assessment to Signposts/ Actions to Deliver the Value Metrics vs Decision Criteria UNDERSTANDING INDONESIA PSC ECONOMICS Interpret Indonesia PSC Project economics Optimize expenditures through economic advantages Value Risks Management along Project Life Cycle PSC Cash Flow mechanism PSC Term & Incentives: FTP;Cost recovery; DMO; Bonuses, Tax Workshop/Exercises Entitlement Calculation Incentives and how does it work (Investment credit, DMO Holiday, ICR) Incentives for Marginal and brown field, EOR / water flood, new field and green field) Valuation and Risk Analysis of Oil & Gas Assets

Instructor Ir. M. Tavip Sunandar, MM, PMP Schedule December 2-4, 2009 3 days Venue Holiday Inn Hotel Bandung Tuition Fee Rp. 5.550.000,-   per participant, excluding accommodation & tax. Registration Send by email -or- fax to: PT. FOCUS TRACO INDONESIA Wisma Pakuan, Jl. Pakuan 12 BOGOR - 16143 (0251) 2169150, 9399888   ( 021) 41002917 (0251) 7534984 training@focustraco.com