Gas Exploration Development Economics
1 - Day Course
Gas Exploration
Development Economics
Maximum Potential: Gas Exploration Economics for Strategic Negotiations & Operations
4 March 2024 | Singapore
About the Course
Maximise Your Potential For Strategic Negotiations & Operations
Embarking on the gas exploration and development journey entails a thorough exploration of economic considerations. This comprehensive guide is tailored for anyone involved in negotiations or operations for gas exploration and development, including geo-technical personnel, engineers, negotiators and lawyers seeking essential knowledge and skills in the dynamic gas sector.
Course Objectives
Delegates will learn about:-
- Economic incentives for gas development and associated terminology
- Analysis of gas properties
- Production sharing contracts (PSCs) & fiscal terms
- Exploration risk analysis, discount rates, economic evaluations, and strategic decision-making
- Valuable insights into sample contract language for key gas provisions, along with an understanding of boundary conditions, concerns, and objectives specific to gas vs oil
What You Will Accomplish
- Informed Decision-Making - Understand the economic dynamics of gas vs oil and enable informed decision-making in resource exploration and development
- Optimized Contractual Agreements – Gain knowledge of PSC clauses and market dynamics allowing for optimized contractual agreements and ensuring favorable terms for gas projects
- Financial Efficiency - Expand your awareness of fiscal incentives for gas development, such as lower royalties, financial efficiency and project viability
- Effective Contract Negotiation - Understand how to facilitate effective negotiation of contracts tailored for gas exploration and minimize uncertainties
- Risk Mitigation - Identify and mitigate risks associated with gas exploration, enhancing project success rates
- Improved Financial Planning - Raise awareness for discount rate impact on financial models allowing for improved financial planning and risk-adjusted investment strategies in the gas sector
Course Director
Mr. Daniel Johnston
President & Founder
Daniel Johnston & Co.
Daniel Johnston, President & Founder of Daniel Johnston & Co., is an independent financial consultant to the international petroleum industry. For the past 25 years he has worked in 44 countries with both International Oil Companies (IOCs) and National Oil Companies (NOCs) on contract analysis and design, negotiations, disputes, and renegotiations. He has a Bachelor of Science Degree in Geology from Northern Arizona University and an M.B.A. (Finance) from the University of Texas at Austin. Daniel founded Daniel Johnston & Co., Inc. in 1985. He writes a column for the Petroleum Accounting and Financial Management Journal (Institute of Petroleum Accounting – University of North Texas) and is author of a number of books including International Petroleum Fiscal Systems and Production Sharing Contracts Pennwell Books (1994).
Who Should Attend
This course is a valuable resource for professionals across various disciplines within the gas exploration and development industry including:-
- C-Level Executives
- Strategic Decision Makers
- Corporate Strategic Planners
- Commercial/Business Dev/Marketing/New Business/Joint Venture Managers
- LNG/Gas Supply Managers
- Policy/Economic/Financial/Business & Accounting Analysts
- Production & Reservoir Managers
- Project Economic Managers
- Negotiators & Lawyers
- Government Officials & Policy Makers
- Geophysicists/Geologists
- Geotechnical Personnel
Programme at a Glance
• Physical Properties
• Thermal Parity
• Price Parity
• Production/Reserve Ratios
• Gas/oil ratios, liquid yield
• Tariff Determination (Netback)
• Development Options
• Coalbed Methane/Non-conventional (Horizontal drilling/Fracking)
• Development options/”Resource Plays”
• Market Development Phase
• Duration and Relinquishment
• Pipelines to Markets • LNG Ships
• LNG Bunkering Options
• Fiscal terms Specific to Gas (compared to Oil)
• Lower Royalty
• Lower Government Take (GT)
• 10% average GT differential
• Basics of LNG, methanol, Fertilizers, Gas-fired Power Glants etc
• Gas recycling projects (Flaring and gas liquids stripped)
• Cash flow analysis
• Cost per mcf calculations (can be very revealing)
• Decision Tree Analysis
• Break-even Analysis
• Threshold field size analysis for:
- Exploration
- Development
• CAPM (Capital Asset Pricing Model)
• WACC (Weighted Average Cost of Capital)
• ICAPM (international Asset Pricing Models
Fundamentals of Refining Economics
- Fundamentals of refinery economics and margin optimization overview
- Tactical planning applications for maximizing refinery financial performance
- Financial Metrics
- Capital costs
How Your Team Will Benefit
- For Business Executives and Decision-Makers - Receive a comprehensive overview of economic factors, fiscal incentives, and risk considerations to guide strategic decision-making at the executive level.
- For Energy Industry Analysts – Get a deep dive into economic and financial aspects, allowing analysts to assess and forecast trends in the gas exploration and development sector.
- For Negotiators and Lawyers – Get equipped with in-depth knowledge of PSC clauses, fiscal terms, and contractual structures to facilitate successful negotiations.
- For Geotechnical Personnel – Gain insights into the economic and geological aspects of gas exploration, enhancing decision-making in resource assessment and development.
- For Engineers - Understand the technical considerations and development options specific to gas, optimizing engineering strategies for efficient and effective project execution.
- For Government Officials and Policy Makers – Obtain insights into fiscal terms, market dynamics, and economic considerations to make policy decisions related to gas exploration and development
- For Investors and Financial Professionals – Learn about the discount rate impact and fiscal terms to make informed investment decisions in the gas sector
- Environmental and Regulatory Experts – Understand the economic and technical aspects of gas development to contribute to environmentally sustainable and compliant projects
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