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Institute For Oil & Gas Training
OGI-1091 New

Oilfield Economics & Project Evaluation for FDP Approval Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
18 Jan 2027
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Overview

Oilfield Economics & Project Evaluation is a strategic capability for organisations making capital decisions across exploration, field development, production, and asset lifecycle management. The Oilfield Economics & Project Evaluation for FDP Approval Training Course from Institute For Oil & Gas Training develops the commercial and economic judgement required to assess development options and support robust field development plan decisions.

Oil and gas development projects involve substantial capital commitments, long production horizons, technical uncertainty, operating expenditure, production forecasts, fiscal considerations, and changing commercial assumptions. A technically attractive development concept still requires a clear economic case before progressing through internal governance and investment approval. Decision makers therefore require a structured approach that connects subsurface expectations, development engineering, production profiles, capital expenditure, operating expenditure, project risks, and economic value.

This course focuses on the economic evaluation of field development options from concept selection through final investment decision and project sanction. It examines how economic assumptions influence development concept comparison and how project teams establish transparent project sanction criteria. Participants develop a practical understanding of how to compare alternative development concepts, evaluate phased development economics, assess tie-back versus standalone options, and communicate economic findings to management and investment committees.

The programme addresses the commercial interface between technical field development work and corporate investment governance. It demonstrates how economic models support field development plan approval by translating production and cost assumptions into cash flow, profitability, value, and decision-making measures. The approach also considers uncertainty, sensitivity analysis, scenario evaluation, cost escalation, production timing, project risks, and economic thresholds.

A structured stage gate process provides a framework for progressing opportunities from early concept definition towards investment approval. Each stage requires increasing confidence in technical scope, cost, schedule, production expectations, commercial assumptions, and economic value. Understanding this process enables professionals to identify the information required at each decision point and present an investment case that aligns with organisational governance requirements.

The course also addresses development choices that frequently arise in upstream projects. These include new standalone facilities, infrastructure-led developments, subsea tie-backs, phased developments, brownfield expansions, and alternative production concepts. Participants examine how different development configurations influence capital requirements, operating costs, production timing, infrastructure utilisation, risk exposure, and project economics.

Institute For Oil & Gas Training positions the course around practical corporate decision making rather than theoretical financial study. Participants work with realistic oil and gas scenarios that demonstrate the relationship between technical assumptions and financial outcomes. The programme supports professionals involved in asset planning, project development, economics, finance, commercial evaluation, investment assurance, and management approval processes.

The course is particularly relevant where an organisation needs stronger consistency in how development opportunities are screened, compared, challenged, and presented for approval. It establishes a common commercial language between technical teams, economists, finance professionals, commercial departments, and senior decision makers.

Objectives

  • Apply Oilfield Economics & Project Evaluation principles to upstream development decisions

  • Understand the economic role of a field development plan

  • Evaluate development concepts using consistent economic and commercial assumptions

  • Compare alternative field development strategies through structured economic analysis

  • Assess tie-back versus standalone development economics

  • Evaluate phased development economics and production sequencing

  • Understand the commercial implications of concept selection

  • Apply discounted cash flow principles to oil and gas development projects

  • Interpret project value, profitability, investment requirements, and economic indicators

  • Evaluate capital expenditure and operating expenditure assumptions within development economics

  • Assess the effect of production timing on project value

  • Conduct sensitivity and scenario analysis for key project assumptions

  • Understand the role of uncertainty in project evaluation

  • Apply structured project sanction criteria

  • Understand how economic analysis supports the final investment decision

  • Integrate technical, commercial, and financial information into investment evaluations

  • Strengthen economic challenge and review during the stage gate process

  • Communicate economic conclusions effectively to senior management

  • Identify assumptions requiring further validation before investment approval

  • Support consistent and transparent development investment decisions

Training methodology

Institute For Oil & Gas Training uses a practical, decision-focused methodology throughout the programme. The delivery connects oilfield economics with the actual project decisions encountered during field development planning and investment governance.

Case Studies

Participants examine realistic upstream development scenarios involving alternative development concepts, production profiles, capital requirements, operating expenditure, and economic assumptions. Each case study focuses on the decisions that influence project value and approval readiness.

Economic Evaluation Exercises

Practical exercises demonstrate how project assumptions translate into cash flow and economic indicators. Participants assess the influence of production timing, expenditure profiles, operating costs, commodity prices, and development sequencing on project value.

Development Concept Comparison

Participants compare alternative concepts using consistent technical and economic assumptions. Exercises address standalone development against infrastructure-led options, including tie-back versus standalone decisions and phased development strategies.

Stage Gate Simulations

The programme uses simulated investment reviews to demonstrate how development opportunities progress through a stage gate process. Participants assess the information required at different decision points and identify economic issues that require further analysis before approval.

Scenario Analysis

Real-world scenarios are used to assess how changes in key assumptions affect project economics. Participants examine production uncertainty, cost changes, schedule movements, commodity price assumptions, and development sequencing.

Group Decision Exercises

Cross-functional exercises replicate the interaction between engineering, subsurface, finance, commercial, and management stakeholders. Participants evaluate competing priorities and develop structured recommendations based on project economics.

Management Presentation Exercises

Participants practise communicating economic findings to senior stakeholders. The emphasis is on presenting assumptions, economic indicators, sensitivities, risks, and project sanction criteria in a clear and commercially relevant format.

Organisational impact

The course strengthens the organisation's ability to connect technical field development planning with disciplined economic decision making. A consistent approach to Oilfield Economics & Project Evaluation improves the quality of development option assessment and supports clearer investment governance.

Stronger Capital Allocation

Organisations gain a structured basis for assessing competing development opportunities. Economic evaluation helps management understand the relationship between investment requirements, production expectations, operating costs, project timing, and anticipated value.

Better Field Development Plan Decisions

A field development plan requires alignment between technical design and commercial value. Participants learn to challenge economic assumptions and identify the financial implications of alternative development configurations before major investment decisions are taken.

Improved Concept Selection

Structured development concept comparison provides management with clearer visibility of the economic trade-offs between competing options. This supports more transparent selection processes and reduces reliance on isolated technical or financial indicators.

More Consistent Investment Governance

The stage gate process benefits from consistent economic criteria at each decision point. Teams develop stronger discipline around assumptions, economic evaluation, risk analysis, and documentation supporting investment approval.

Improved Project Sanction Readiness

Clear project sanction criteria help organisations identify whether a development case contains the necessary economic evidence for progression. This supports better preparation for investment committees and senior management reviews.

Better Cost Discipline

Economic evaluation highlights the relationship between capital expenditure, operating expenditure, production timing, and project value. This supports more effective cost challenge during development planning and concept comparison.

More Effective Infrastructure Decisions

Comparing tie-back versus standalone options provides a structured basis for assessing infrastructure utilisation, development expenditure, operating requirements, and production timing. This supports better asset portfolio planning.

Stronger Cross-Functional Alignment

The course establishes a shared understanding between petroleum engineering, subsurface, finance, commercial, project management, and investment teams. This improves communication when technical assumptions have direct financial consequences.

Better Risk Visibility

Scenario and sensitivity analysis enables teams to identify assumptions that have a significant effect on project economics. Management gains clearer visibility of economic exposure before committing capital.

Improved Decision Documentation

A structured evaluation approach supports clearer documentation of assumptions, alternatives, economic indicators, risks, and approval criteria. This strengthens the quality of investment papers and management presentations.

Personal impact

Participants develop a broader commercial understanding of how technical field development decisions influence project value. The course strengthens the ability to interpret economic evaluations and contribute meaningfully to investment discussions.

Stronger Economic Analysis

Participants improve their ability to assess project cash flows, investment requirements, operating expenditure, production timing, and economic indicators within an upstream development context.

Improved Commercial Judgement

Professionals gain a clearer understanding of the commercial implications of development concepts and learn how economic considerations influence concept selection and final investment decision processes.

Better Cross-Functional Communication

Participants become better equipped to discuss economic assumptions with engineering, subsurface, finance, commercial, and project teams. This supports more effective contribution to integrated development decisions.

Greater Investment Review Capability

The programme strengthens the ability to challenge assumptions, interpret sensitivities, identify economic risks, and assess whether a development proposal satisfies defined project sanction criteria.

Stronger Management Communication

Participants develop the ability to present economic conclusions clearly and explain the factors influencing project value to decision makers.

Enhanced Strategic Perspective

The course helps professionals understand how individual development decisions fit within broader asset and portfolio considerations, particularly where infrastructure, development sequencing, and capital allocation compete for resources.

Who should attend

Asset Managers and Asset Team Leaders

Designed for professionals responsible for asset performance, development planning, investment decisions, and commercial value generation.

Petroleum Economists and Economic Analysts

Relevant for specialists responsible for economic modelling, project evaluation, sensitivities, investment analysis, and economic assurance.

Petroleum Engineers

Supports engineers involved in development planning who need to understand the economic consequences of technical and concept decisions.

Reservoir Engineers

Relevant for professionals translating production forecasts, reserves assumptions, and development strategies into economic evaluations.

Subsurface Managers

Provides commercial insight into how subsurface assumptions influence development economics, investment cases, and project approval.

Development Planning Professionals

Supports professionals responsible for field development plans, concept screening, development sequencing, and investment documentation.

Project Managers

Helps project leaders understand how scope, cost, schedule, production timing, and development configuration influence project economics.

Finance Professionals

Relevant for finance teams supporting capital investment evaluations and reviewing economic assumptions within upstream development proposals.

Commercial and Business Development Professionals

Strengthens the ability to assess development opportunities from economic, commercial, and investment perspectives.

Investment and Planning Professionals

Supports professionals involved in portfolio planning, capital allocation, investment screening, and project governance.

Senior Management and Decision Makers

Provides a structured understanding of the economic factors supporting concept selection, project sanction, and final investment decision processes.

Course outline

This module establishes the economic foundation required to evaluate upstream development opportunities. It examines the connection between field development planning, production forecasts, costs, investment requirements, economic indicators, and corporate decision making.

  1. PRMS

    • Petroleum Resources Management System provides a recognised framework for petroleum resource classification and evaluation.

    • It supports consistent consideration of recoverable petroleum quantities and project maturity.

    • Resource classification provides an important foundation for economic assessment of development opportunities.

    • Economic evaluation connects resource assumptions with commercial development scenarios.

    Learning Outcomes

    Participants will be able to:

    • Explain the role of economics in field development planning

    • Identify key drivers of upstream project value

    • Interpret core economic indicators

    • Connect production and cost assumptions with project cash flow

    • Establish a structured foundation for development economic evaluation

This module focuses on comparing alternative development concepts before a preferred solution is taken forward. It examines how technical configuration, infrastructure requirements, investment levels, operating costs, production timing, and project risks influence economic outcomes.

  1. ISO 15663

    • ISO 15663 provides guidance for life cycle cost analysis in the petroleum, petrochemical, and natural gas industries.

    • It supports consideration of costs across the asset life cycle.

    • Life cycle cost thinking strengthens comparison between alternative development concepts.

    • The standard provides a recognised basis for considering cost consequences beyond initial capital expenditure.

    Learning Outcomes

    Participants will be able to:

    • Structure development concept comparisons

    • Evaluate economic differences between alternative configurations

    • Assess tie-back versus standalone options

    • Identify life cycle cost considerations

    • Link concept selection with project value and development objectives

This module examines how development sequencing and uncertainty affect project economics. Participants assess phased development economics and investigate the sensitivity of project value to changes in key technical, commercial, and financial assumptions.

  1. ISO 31000

    • ISO 31000 provides principles and guidelines for risk management.

    • It supports structured identification, assessment, treatment, and monitoring of risks.

    • Risk management principles provide a useful framework for considering uncertainty within project evaluation.

    • Applying structured risk thinking improves transparency around assumptions affecting project economics.

    Learning Outcomes

    Participants will be able to:

    • Evaluate phased development strategies

    • Assess the economic effects of development sequencing

    • Identify major economic sensitivities

    • Apply scenario-based evaluation to development decisions

    • Distinguish key assumptions from less material variables

    • Integrate structured risk considerations into economic reviews

This module examines how economic evaluation supports governance from concept maturation through project approval. It focuses on the stage gate process, investment assurance, economic challenge, project sanction criteria, and the information required to support progression between decision stages.

  1. ISO 31000

    • ISO 31000 provides recognised principles for systematic risk management.

    • It supports consistent identification and evaluation of risks within organisational decision processes.

    • Risk considerations form an important part of investment assurance and project sanction reviews.

    • Applying structured risk management principles supports clearer communication of uncertainty to decision makers.

    Learning Outcomes

    Participants will be able to:

    • Explain the economic role of the stage gate process

    • Identify information required for investment progression

    • Establish structured project sanction criteria

    • Assess economic readiness for project approval

    • Present key risks and sensitivities within investment reviews

    • Support final investment decision preparation

The final module integrates the economic, technical, commercial, and governance principles covered throughout the programme. Participants consolidate their ability to evaluate a development opportunity and construct an investment case suitable for field development plan approval and senior management review.

  1. IFRS 6

    • IFRS 6 addresses exploration for and evaluation of mineral resources, including accounting considerations relevant to exploration and evaluation expenditure.

    • It provides an established financial reporting framework for relevant exploration and evaluation activities.

    • Understanding the accounting context supports stronger communication between project economics and finance functions.

    • The standard helps professionals distinguish exploration and evaluation expenditure considerations within financial reporting processes.

    Learning Outcomes

    Participants will be able to:

    • Integrate technical and economic information into a development evaluation

    • Assess the economic case supporting FDP approval

    • Compare development alternatives using consistent criteria

    • Consolidate sensitivities, risks, costs, and production assumptions

    • Structure an investment case for senior management review

    • Apply project sanction criteria to development decisions

    • Support final investment decision discussions with clear economic evidence

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. Certificate eligibility requires attendance and participation throughout the full course programme.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,900

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the Oilfield Economics & Project Evaluation for FDP Approval Training Course cover?

The course covers development economics, field development plan evaluation, concept selection, development concept comparison, phased development economics, project sanction criteria, stage gate processes, and final investment decision preparation.

Who is the course designed for?

The programme is designed for asset managers, petroleum economists, engineers, development planning professionals, project managers, finance professionals, commercial teams, investment specialists, and senior decision makers involved in oil and gas development projects.

How is the course delivered?

Institute For Oil & Gas Training uses case studies, economic evaluation exercises, development concept comparisons, scenario analysis, group exercises, stage gate simulations, and management presentation activities to connect the subject with real-world project decisions.

Does the course address tie-back versus standalone development?

Yes. The programme examines tie-back versus standalone development economics, including capital expenditure, operating requirements, infrastructure utilisation, production timing, development sequencing, and their influence on project value.

What capability does the course develop?

The course develops practical capability in Oilfield Economics & Project Evaluation, economic analysis, development option comparison, sensitivity assessment, project sanction criteria, investment case preparation, and economic support for field development plan approval and final investment decision processes.

Next: 18 Jan 2027

4 dates available

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