Valuation and Risk Analysis of Oil & Gas Assets

Tanggal
2-4 Desember 2009

Jam Pelaksanaan
09.00 – 16.30 WIB

Tempat
Holiday Inn Hotel
Bandung

Pembicara / Fasilitator
Ir. M. Tavip Sunandar, MM, PMP
Ir. M. Tavip Sunandar, MM, PMP graduated from Chemical Engineering Bandung Institute of Technology (1988). He then joined with ARCO Indonesia as a junior engineer. Graduated from Magister Management (MBA) of Prasetiya Mulya Bussiness School. More than seventeen years experience in the Project Management area. He is PMP (Project Management Proffesional) credential holder. Since 2000 his position is as a Senior Project Manager BP Indonesia. His experience includes managing multiple West Java and Pagerungan Projects 2000 – 2003. He was responsible in full project cycles: Appraise – Select- Define – Execute- and Operate. He managed four Project Management Teams , 12 to 20 engineers and multiple contractors. He was also the Project Leader for Pagerungan Inlet Compression Project Define – Execute- and Operate. Currently he is the Project Manager of BP Tangguh Platform Project. Very experienced instructor for various training & courses in Project Management.

Harga
Rp. 5.550.000,-
per participant, excluding accommodation & tax.

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)