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Institute For Oil & Gas Training
OGI-1158 New

Financial Modelling for PSCs & JVs in Excel Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

Financial Modelling for PSCs & JVs is a specialist corporate training course from Institute For Oil & Gas Training designed for finance, commercial, economics, planning and asset professionals who need to build, review and use integrated Excel models for production sharing contracts and joint venture arrangements. The course develops practical capability in model architecture, contractual economics, fiscal calculations, cash flow forecasting and decision support for upstream oil and gas investments.

Oil and gas projects operating under PSC and JV structures require financial models that connect production profiles, capital expenditure, operating costs, fiscal terms, taxation, cost recovery, profit allocation, entitlement and investor returns. A model that separates these elements or applies contractual logic inconsistently creates weaknesses in economic evaluation, budgeting, partner reporting and investment decisions. Institute For Oil & Gas Training addresses this requirement through a structured approach to Financial Modelling for PSCs & JVs in Excel, using realistic upstream commercial scenarios and integrated model-building exercises.

The course focuses on the practical construction of financial models that reflect the economic mechanics of petroleum contracts. Participants work through model architecture from the initial input assumption sheets through calculation blocks, fiscal waterfalls and final reporting outputs. Particular attention is given to the cost oil calculation block, profit oil split logic, entitlement schedule, government take waterfall and contractor after-tax cash flow.

A well-designed petroleum financial model provides a controlled connection between commercial assumptions and management outputs. Participants learn how to structure production, price, cost, investment, depreciation, tax and fiscal assumptions so that changes to key drivers flow consistently through the model. This supports sensitivity analysis, scenario evaluation and transparent communication of project economics.

The course also addresses the challenges created by PSC and JV arrangements where contractual obligations, partner interests and government participation interact with project economics. Participants examine how ownership interests, participating interests, recoverable costs, non-recoverable expenditure, tax obligations, lifting arrangements and cash distributions affect financial outcomes.

Excel is used as the core modelling environment because it remains widely used across upstream finance, commercial analysis, planning, joint venture management and investment evaluation. The training therefore focuses not only on financial concepts but also on practical spreadsheet construction, formula discipline, linked schedules, checks, scenario controls and output presentation.

Institute For Oil & Gas Training places strong emphasis on model integrity. Participants learn to distinguish assumptions from calculations and outputs, establish clear calculation flows, apply validation checks and structure workbooks so that another professional can understand and review the model efficiently.

The course is particularly relevant when organisations need to evaluate development concepts, compare fiscal scenarios, assess contractual economics, support budgets, review partner submissions or understand the effect of changes in production, commodity prices, expenditure and government take. The resulting modelling capability supports better coordination between finance, commercial, economics, planning, tax and asset teams.

The programme also strengthens understanding of the relationship between upstream accounting and economic modelling. Participants examine how contractual and accounting considerations influence cash flow analysis without treating accounting presentation as a substitute for commercial modelling. This distinction is important when a model is used for investment decisions, partner discussions and economic evaluations.

By the end of the course, participants have a structured understanding of how to develop an integrated PSC and JV model in Excel, from assumptions through calculations to management outputs. The emphasis remains on practical application, transparent model design and commercially relevant analysis.

Objectives

  • Build a structured Excel model for PSC and JV economic analysis

  • Design effective model architecture that separates assumptions, calculations and outputs

  • Develop input assumption sheets for production, pricing, expenditure, ownership and fiscal variables

  • Construct a cost oil calculation block that reflects contractual recovery mechanisms

  • Apply profit oil split logic to determine contractor and government allocations

  • Build an entitlement schedule connecting production, lifting and economic interests

  • Develop a government take waterfall for integrated fiscal analysis

  • Calculate contractor after-tax cash flow from project and fiscal assumptions

  • Connect capital expenditure and operating expenditure schedules to project economics

  • Develop transparent Excel formulas and linked calculation schedules

  • Apply validation checks and controls to improve model integrity

  • Build an output dashboard that communicates key economic indicators clearly

  • Analyse changes in production, prices, costs and fiscal assumptions

  • Evaluate the effect of PSC and JV structures on project cash flows

  • Support investment, budgeting and commercial decisions with structured financial analysis

  • Improve communication between finance, commercial, tax, economics and asset teams

  • Review existing petroleum financial models for structural and calculation weaknesses

  • Apply recognised accounting and risk management principles relevant to petroleum modelling

  • Produce models that are easier to review, update and communicate across stakeholder groups

Training methodology

Institute For Oil & Gas Training delivers this course through an applied corporate methodology built around practical modelling, guided analysis and realistic upstream scenarios. The training combines structured presentations with Excel-based exercises so participants continuously connect petroleum economics concepts with model construction.

Case studies are used to demonstrate how PSC and JV terms translate into financial model calculations. Participants examine production assumptions, capital expenditure, operating expenditure, pricing, cost recovery, profit allocation, taxation and contractor economics before integrating the individual components into a coherent model.

Practical Excel exercises form a central part of the methodology. Participants work through model architecture, input assumption sheets, calculation blocks, linked schedules and output dashboards. The exercises demonstrate how a change in a commercial assumption affects project economics throughout the model.

Scenario-based modelling is used to strengthen commercial judgement. Participants assess different production, cost, price, recovery and fiscal scenarios and examine the resulting impact on government and contractor cash flows. This approach develops the ability to interpret model outputs rather than simply produce spreadsheet calculations.

Group exercises focus on model review and quality control. Participants identify inconsistent assumptions, broken links, inappropriate formulas and calculation weaknesses. This reinforces the importance of model transparency and reviewability in corporate environments.

Real-world oil and gas scenarios provide the commercial context for the exercises. The methodology reflects the interaction between petroleum contracts, project economics, partner interests and government revenue rather than treating financial modelling as an isolated Excel exercise.

Participants also review common modelling errors and discuss methods for preventing them. These include hard-coded calculations, inconsistent assumptions, unclear formula structures, duplicated inputs and inadequate validation checks.

The methodology is designed for professionals who need to apply the capability immediately within their organisations. The course therefore emphasises practical model construction, interpretation, review and communication rather than theoretical spreadsheet instruction.

Organisational impact

A structured approach to Financial Modelling for PSCs & JVs improves the quality and consistency of financial analysis across upstream assets. Organisations gain personnel who understand how contractual terms translate into financial calculations and how those calculations affect project economics.

Improved model architecture reduces the risk of disconnected assumptions and duplicated calculations. Separating input assumption sheets from calculation schedules and outputs establishes a clearer model structure that supports review, maintenance and controlled updates.

The course strengthens project economic evaluation by connecting production forecasts, commodity prices, capital expenditure, operating expenditure, cost recovery and taxation within one integrated model. Finance and commercial teams gain a stronger basis for analysing project economics and explaining movements in forecast cash flows.

PSC modelling capability also improves understanding of government and contractor economics. The cost oil calculation block, profit oil split logic and government take waterfall provide a structured way to analyse how contractual mechanisms distribute economic value.

For JV organisations, improved modelling supports clearer analysis of participating interests and contractor cash flows. A consistent entitlement schedule helps connect production and contractual interests with expected economic outcomes.

Better model controls support internal review and governance. Clear assumptions, linked schedules, validation checks and documented calculations make models easier for finance, commercial and management teams to challenge and approve.

The course also supports more efficient scenario analysis. Teams can assess changes to production, prices, costs, capital expenditure and fiscal terms without rebuilding the model from the beginning. This supports faster commercial analysis during budgeting, planning and investment evaluation.

An integrated output dashboard improves management communication by presenting key economic indicators in a structured format. Decision-makers can review project cash flow, government take, contractor economics and other relevant outputs without navigating every calculation sheet.

The training also strengthens cross-functional alignment. Finance professionals gain greater understanding of commercial and fiscal drivers, while commercial and asset professionals develop stronger awareness of how contractual assumptions affect financial outputs.

For organisations managing multiple assets or contracts, consistent modelling practices provide a more repeatable approach to economic evaluation. This supports internal benchmarking, scenario comparison and review of assumptions across projects.

Personal impact

Participants develop practical skills that directly support responsibilities in upstream finance, commercial management, petroleum economics, planning and joint venture operations.

The course strengthens Excel modelling capability beyond basic spreadsheet use. Participants learn to structure complex financial models with clearly defined assumptions, calculations, schedules and outputs.

Professionals gain a stronger understanding of PSC and JV economics and how contractual terms influence project cash flow. This helps them engage more effectively with commercial, tax, finance and asset teams.

Participants also improve their ability to interpret model results. Rather than focusing only on formula construction, they learn how production, prices, expenditure and fiscal terms influence contractor and government economics.

The ability to build an entitlement schedule and government take waterfall supports stronger commercial analysis and partner discussions. Participants can trace how contractual mechanisms influence financial outcomes.

The course also improves model review skills. Professionals learn how to examine workbook structures, identify calculation inconsistencies and assess whether assumptions are flowing correctly through the model.

Building an output dashboard strengthens management reporting capability. Participants learn to transform detailed calculations into clear outputs that support corporate decision-making.

The capability gained is relevant to professionals progressing into senior finance, commercial, planning, petroleum economics and asset management responsibilities. It also supports professionals who increasingly work across functional boundaries.

Who should attend

Upstream Finance Professionals

Finance managers, financial analysts and petroleum accountants who need to understand and model PSC and JV economics.

Petroleum Economists

Economists responsible for project evaluation, fiscal analysis, economic modelling and investment scenarios.

Commercial Professionals

Commercial managers and analysts who assess contractual economics, partner interests and project returns.

Joint Venture Professionals

JV managers, partner representatives and asset finance professionals who need stronger modelling capability for participating interests and cash flow analysis.

Planning and Budgeting Teams

Planning, budgeting and forecasting professionals who build or review upstream project financial assumptions.

Tax and Fiscal Professionals

Tax managers and fiscal specialists who need to understand how taxation and government take affect project economics.

Asset Managers

Asset managers and upstream leaders who use financial models to support development, investment and portfolio decisions.

Business Development Professionals

Business development teams involved in acquisition screening, project evaluation, commercial negotiations and investment analysis.

Senior Management

Directors and senior managers who review PSC and JV economic models and need to understand the assumptions and outputs behind financial recommendations.

Course outline

This module establishes the foundation for building a robust petroleum financial model in Excel. It focuses on the relationship between contractual assumptions, production forecasts, costs, fiscal calculations and financial outputs. Participants develop a clear model architecture that separates inputs, calculations, schedules, checks and reporting.

  1. IFRS 11 Joint Arrangements

    • Provides accounting principles for arrangements where parties share control.

    • Supports consideration of joint arrangement structures relevant to JV modelling.

    • Helps participants distinguish contractual participation structures from financial model calculations.

    Learning Outcomes

    • Structure a scalable PSC and JV financial model

    • Separate assumptions, calculations and outputs

    • Design effective input assumption sheets

    • Establish logical links between operational and financial schedules

    • Apply basic model control and validation techniques

This module focuses on converting production and expenditure assumptions into contractual economic calculations. Participants develop the core mechanisms required to calculate recoverable costs, cost oil, profit oil and contractual allocations.

  1. IFRS 6 Exploration Evaluation

    • Provides accounting guidance for exploration and evaluation expenditure.

    • Establishes a relevant financial reporting context for upstream exploration activities.

    • Helps participants understand the distinction between accounting treatment and contractual economic modelling.

    Learning Outcomes

    • Calculate petroleum revenue from production and price assumptions

    • Build a structured cost recovery calculation

    • Develop the cost oil calculation block

    • Apply profit oil split logic

    • Connect production and expenditure assumptions to contractual economics

This module develops the integrated fiscal and cash flow calculations that determine economic outcomes for government and contractors. Participants connect entitlement, fiscal obligations and contractor cash flow within a single modelling structure.

  1. IAS 12 Income Taxes

    • Establishes principles for accounting for income taxes.

    • Provides a recognised framework for understanding tax-related financial reporting considerations.

    • Supports discussion of tax effects within integrated project financial analysis.

    Learning Outcomes

    • Build an entitlement schedule

    • Connect contractual allocations with project cash flow

    • Construct a government take waterfall

    • Calculate contractor after-tax cash flow

    • Understand how fiscal mechanisms affect project economics

This module applies the model to joint venture economics and commercial decision-making. Participants examine how participating interests, investment assumptions and operating scenarios influence financial outcomes.

  1. IFRS 10 Consolidated Statements

    • Establishes principles relating to control and consolidation.

    • Provides useful financial reporting context when analysing interests in controlled entities and arrangements.

    • Helps participants understand the distinction between ownership, control and economic participation.

    Learning Outcomes

    • Model participating interest economics

    • Allocate project expenditure across JV interests

    • Analyse partner-level cash flows

    • Build practical scenario and sensitivity analysis

    • Assess the effect of key commercial assumptions on project economics

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. The certificate is issued to participants who meet the course attendance requirement and complete the scheduled training programme.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,700

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

Frequently asked questions

What is Financial Modelling for PSCs & JVs?

Financial Modelling for PSCs & JVs is the structured process of building Excel-based models that connect petroleum production, costs, fiscal terms, contractual allocations and contractor cash flow.

Who is this course designed for?

The course is designed for finance, commercial, petroleum economics, tax, planning, budgeting, JV, asset management and business development professionals working with upstream oil and gas projects.

What Excel modelling skills are covered?

Participants learn model architecture, input assumption sheets, linked calculation schedules, cost recovery calculations, profit oil split logic, entitlement schedules, fiscal waterfalls, after-tax cash flow and output dashboard design.

How is the course delivered?

Institute For Oil & Gas Training uses practical Excel exercises, case studies, group exercises, scenario analysis and realistic upstream oil and gas situations to connect financial modelling techniques with commercial applications.

What will participants be able to do after the course?

Participants will be able to structure and review PSC and JV financial models, analyse contractual economics, calculate contractor and government cash flows, perform scenario analysis and communicate model outputs through structured reporting.

Next: 05 Oct 2026

4 dates available

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