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Institute For Oil & Gas Training
OGI-1115 New

Oilfield Economics & Project Evaluation for LNG Investment Training Course

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

Oilfield Economics & Project Evaluation is a commercially focused training course from Institute For Oil & Gas Training designed for professionals responsible for evaluating upstream, midstream and LNG investment opportunities. The course develops practical capability in oilfield economics, LNG project economics, commercial evaluation and investment decision-making across the gas value chain.

Oil and gas organisations increasingly evaluate projects that extend beyond reservoir development into gas processing, transportation, liquefaction, storage, shipping and market access. Investment decisions therefore require an integrated understanding of technical assumptions, capital expenditure, operating expenditure, production profiles, infrastructure requirements, fiscal structures, commercial agreements and market pricing. A project that appears attractive at the field level requires further analysis of transportation costs, processing requirements, pipeline tariffs, LNG conversion economics and downstream market value before its overall commercial position is established.

This course addresses the gap between technical project estimates and commercially robust investment evaluation. It enables participants to connect field development assumptions with gas commercialisation strategies and assess how each stage of the value chain affects project economics. The approach covers production and throughput assumptions, development expenditure, operating costs, revenue structures, transportation economics, infrastructure sharing, contractual commitments and market-linked pricing.

LNG investment decisions require particular attention to the relationship between upstream gas supply and downstream market requirements. Participants examine how feedgas availability, production decline, processing capacity, pipeline access, liquefaction utilisation and LNG sales arrangements interact within an integrated investment case. The course also explores netback pricing as a mechanism for assessing the value of gas at different points in the value chain.

Pipeline tariff modelling forms an important part of the commercial evaluation process. Participants assess how transportation charges influence field economics, project cash flow and delivered gas value. The course examines throughput assumptions, capacity utilisation, tariff structures and cost allocation principles that influence the economics of shared and dedicated infrastructure.

Take or pay contracts also receive detailed attention because contractual volume commitments directly affect commercial exposure. Participants explore how contractual structures interact with supply forecasts, utilisation levels, pricing mechanisms and project financing assumptions. This provides a practical foundation for assessing the commercial implications of long-term gas and LNG arrangements.

The programme also addresses infrastructure sharing, which is increasingly relevant where multiple fields, producers or projects use common pipelines, processing facilities, terminals or other infrastructure. Participants learn how shared infrastructure costs and tariffs affect project economics and how allocation assumptions influence investment cases.

Gas value chain economics provides the broader commercial framework for the course. Participants assess how value moves from exploration and production through gathering, processing, transportation, liquefaction and LNG sales. This integrated perspective supports more consistent investment analysis and improves the quality of commercial discussions between technical, financial, commercial and management teams.

The course uses practical economic evaluation techniques rather than theoretical financial instruction. Participants work with project assumptions, commercial scenarios and investment cases that reflect the decisions encountered within operating companies, joint ventures, project development teams and investment functions. The emphasis remains on interpreting commercial drivers, challenging assumptions, identifying value leakage and presenting decision-relevant conclusions.

Institute For Oil & Gas Training positions the course for professionals who need to evaluate projects from an organisational and investment perspective. It supports stronger communication between engineering, finance, commercial, planning, economics, contracts and management functions by establishing a common understanding of the financial and commercial drivers behind oil and gas projects.

Objectives

  • Develop a practical understanding of Oilfield Economics & Project Evaluation across upstream, midstream and LNG investments

  • Evaluate field development assumptions and their impact on project economics

  • Apply structured approaches to capital expenditure and operating expenditure assessment

  • Analyse production profiles and throughput assumptions within integrated project models

  • Assess gas commercialisation strategies across the wider gas value chain

  • Understand the principal economic drivers of LNG projects from feedgas supply through LNG sales

  • Apply pipeline tariff modelling concepts to transportation and infrastructure evaluation

  • Assess the commercial impact of take or pay contracts on project economics

  • Use netback pricing to evaluate gas value at different points in the value chain

  • Evaluate infrastructure sharing arrangements and their effect on project costs and returns

  • Identify key assumptions that influence project cash flow and investment outcomes

  • Analyse the commercial relationship between upstream assets and downstream LNG infrastructure

  • Conduct sensitivity analysis around pricing, volumes, costs and infrastructure charges

  • Interpret project economic indicators for investment review and management decision-making

  • Challenge economic assumptions through structured commercial analysis

  • Improve communication of project economics to finance, technical, commercial and executive stakeholders

  • Integrate contractual, operational and financial considerations into investment evaluation

  • Support more consistent commercial assessment of oil and gas capital projects

Training methodology

The training methodology combines commercial analysis, practical exercises, project scenarios and structured evaluation techniques. The delivery is designed around the way investment decisions are made within oil and gas organisations, where project economics depend on the interaction of technical, financial and contractual variables.

Participants work through representative upstream and LNG investment cases covering production forecasts, capital expenditure, operating expenditure, transportation requirements, processing costs, pricing assumptions and revenue structures. Exercises require participants to assess how changes in individual assumptions influence project economics and overall investment conclusions.

Case studies focus on gas commercialisation decisions and LNG project economics. Participants examine the commercial pathway from field production to LNG delivery and identify the assumptions that determine value at each stage. This reinforces the importance of evaluating projects across the complete gas value chain rather than analysing individual assets in isolation.

Simulation exercises introduce changes in throughput assumptions, gas prices, capital expenditure, operating costs and infrastructure charges. Participants assess the effect of these changes on project cash flow and investment indicators. This develops practical sensitivity analysis and supports more disciplined challenge of project assumptions.

Group exercises examine pipeline tariff modelling and infrastructure sharing arrangements. Participants consider the allocation of infrastructure costs, expected utilisation, transportation charges and available capacity. The exercises demonstrate how tariff assumptions affect field economics and the commercial attractiveness of connected projects.

Contract-based scenarios examine take or pay contracts, pricing structures and volume commitments. Participants assess the relationship between contracted quantities and expected production or throughput. This develops stronger understanding of contractual exposure and its influence on investment evaluation.

Netback pricing exercises connect market prices with upstream gas value. Participants work backwards from downstream market value to understand how transportation, processing, liquefaction and other value chain costs affect the price available to the upstream producer.

The methodology also incorporates facilitated discussions around investment decision criteria. Participants compare alternative development concepts, identify critical economic assumptions and assess the commercial consequences of different project structures. This encourages cross-functional thinking and improves the ability to communicate investment findings to senior decision-makers.

Organisational impact

The course strengthens the quality and consistency of investment evaluation within oil and gas organisations. Sponsoring companies benefit from professionals who understand how technical assumptions translate into commercial value and how decisions at one point in the gas value chain affect economics elsewhere.

Improved project screening supports more disciplined allocation of capital. Participants gain a clearer understanding of the assumptions that drive project value, allowing organisations to establish stronger evaluation processes before committing resources to detailed development studies.

The course also improves alignment between technical and financial teams. Engineering teams typically focus on production capability, facilities and technical performance, while finance and commercial teams focus on costs, revenues, contracts and returns. An integrated understanding of Oilfield Economics & Project Evaluation helps these functions evaluate the same project using a common commercial framework.

Better analysis of throughput assumptions improves infrastructure planning. Organisations can assess whether expected production and transportation volumes support proposed pipeline or processing investments and identify the commercial implications of underutilised capacity.

Pipeline tariff modelling capability supports more transparent transportation economics. Organisations can evaluate the effect of tariff structures on connected fields, shared infrastructure and delivered gas value. This assists commercial teams when reviewing transportation arrangements and infrastructure access.

Understanding take or pay contracts helps organisations identify volume-related commercial exposure. Participants assess how contractual commitments interact with production forecasts and infrastructure utilisation, supporting stronger commercial review of long-term agreements.

The course also supports improved gas commercialisation planning. Organisations can evaluate alternative routes to market and examine how processing, transportation, liquefaction and downstream pricing influence upstream value.

Netback pricing analysis provides a stronger basis for assessing market-linked gas value. This helps organisations distinguish between headline market prices and the actual value available after accounting for relevant value chain costs.

Infrastructure sharing analysis supports more effective evaluation of joint facilities and multi-user developments. Organisations can examine cost allocation and utilisation assumptions while identifying the economic consequences of different infrastructure arrangements.

The programme further strengthens investment governance by encouraging consistent documentation of assumptions, sensitivities and commercial drivers. This supports clearer internal reviews and more effective communication with management, partners and investment committees.

Personal impact

Participants develop stronger commercial capability for evaluating oil and gas projects across the complete investment lifecycle. They gain practical skills for connecting technical project information with financial and commercial outcomes.

The course improves the ability to interpret project economics rather than relying solely on financial outputs. Participants learn to identify the assumptions behind project value and assess how production, pricing, costs, infrastructure and contractual conditions influence the investment case.

Professionals involved in gas and LNG projects develop a broader understanding of gas commercialisation. They gain insight into the relationship between upstream production, transportation, processing, liquefaction and LNG markets.

Participants strengthen their ability to analyse pipeline economics and infrastructure sharing. This provides useful commercial capability for professionals involved in transportation agreements, field development planning, infrastructure projects and joint ventures.

The course also develops stronger understanding of netback pricing and its role in gas valuation. Participants become better equipped to discuss market value, transportation costs and downstream deductions when assessing commercial opportunities.

Contract professionals gain greater insight into the economic consequences of take or pay commitments. Finance professionals gain stronger understanding of operational and commercial assumptions behind project cash flows. Technical professionals gain a clearer view of how development choices affect project value.

The practical methodology strengthens analytical judgement, commercial communication and cross-functional collaboration. Participants return to their organisations with a structured approach for reviewing investment assumptions and explaining project economics to stakeholders at different levels.

Who should attend

Petroleum Economists and Commercial Analysts

Built for professionals responsible for evaluating project economics, commercial assumptions, investment cases and value creation opportunities.

Finance and Investment Professionals

Relevant for finance managers, analysts and investment professionals assessing capital allocation, project cash flow and economic performance.

Business Development Professionals

Designed for professionals evaluating gas commercialisation opportunities, partnerships, infrastructure options and LNG investment strategies.

LNG and Gas Commercial Teams

Supports professionals responsible for gas supply, LNG projects, market evaluation, commercial structures and value chain analysis.

Project Managers

Useful for project leaders who need to understand the financial and commercial consequences of technical and development decisions.

Reservoir and Production Professionals

Provides commercial context for production forecasts, field development assumptions and the relationship between technical performance and project economics.

Planning and Strategy Professionals

Supports professionals involved in portfolio planning, investment prioritisation, scenario analysis and long-term development strategies.

Contracts and Commercial Professionals

Relevant for professionals assessing take or pay contracts, transportation arrangements, pricing structures and infrastructure agreements.

Pipeline and Infrastructure Professionals

Provides economic insight into tariff modelling, throughput assumptions, capacity utilisation and shared infrastructure arrangements.

Senior Management and Decision-Makers

Designed for managers and executives who review investment proposals and require a clear understanding of the commercial drivers behind project value.

Course outline

This module establishes the commercial framework for Oilfield Economics & Project Evaluation. It examines how technical, operational and financial assumptions combine to determine the economic value of an oil and gas development.

  1. SPE Petroleum Resources Management System

    • Provides a recognised framework for classifying petroleum resources and reserves

    • Supports consistent consideration of commerciality within resource evaluation

    • Connects technical resource estimates with development and economic conditions

    • Provides terminology relevant to petroleum project evaluation

    • Supports structured communication between technical and commercial disciplines

    Learning Outcomes

    • Explain the principal components of an oilfield economic evaluation

    • Distinguish technical assumptions from commercial and financial assumptions

    • Construct a structured project cash flow framework

    • Interpret core investment evaluation measures

    • Identify assumptions with material influence on project economics

    • Apply sensitivity and scenario analysis to investment cases

    • Assess the commercial implications of field development decisions

This module examines the commercial pathway from upstream gas production to LNG markets. It focuses on gas commercialisation, LNG project economics and the integration of upstream supply with processing, transportation and liquefaction requirements.

  1. IFRS 15 Revenue from Contracts with Customers

    • Establishes principles for recognising revenue from customer contracts

    • Provides a recognised accounting framework relevant to revenue assessment

    • Supports analysis of contractual revenue arrangements

    • Provides useful context for evaluating long-term commercial structures

    • Helps participants distinguish contractual considerations from broader project valuation assumptions

    Learning Outcomes

    • Assess the main economic drivers of LNG investments

    • Evaluate the relationship between upstream gas supply and LNG capacity

    • Analyse gas commercialisation routes

    • Identify key assumptions within LNG project economics

    • Examine the economic effect of utilisation and feedgas availability

    • Connect upstream gas value with downstream LNG market value

    • Assess commercial interfaces across the gas value chain

This module focuses on the transportation economics that connect gas production with processing, LNG facilities and downstream markets. It develops practical understanding of pipeline tariff modelling, throughput assumptions and infrastructure sharing.

  1. EU Network Code Tariffs

    • Establishes harmonised principles for transmission tariff structures within the European gas market

    • Addresses transmission service revenue and tariff methodologies

    • Provides a recognised regulatory reference for gas transmission tariff structures

    • Supports understanding of capacity and tariff design principles

    • Offers useful context for analysing regulated gas transportation economics

    Learning Outcomes

    • Explain the commercial drivers of pipeline transportation costs

    • Develop structured pipeline tariff modelling assumptions

    • Assess the effect of throughput on transportation economics

    • Evaluate infrastructure sharing arrangements

    • Analyse cost allocation considerations for shared facilities

    • Assess the influence of tariffs on upstream project economics

    • Identify infrastructure assumptions that require sensitivity analysis

This module examines how gas prices and contractual structures influence project value. It focuses on netback pricing, take or pay contracts and the commercial relationship between contracted volumes, market value and project economics.

  1. IFRS 9 Financial Instruments

    • Provides recognised accounting principles for financial instruments

    • Includes requirements relevant to certain contractual and financial exposures

    • Provides context for understanding financial risk considerations

    • Supports structured consideration of contractual financial characteristics

    • Helps distinguish accounting treatment from underlying commercial economics

    Learning Outcomes

    • Apply netback pricing concepts to gas value analysis

    • Explain how transportation and processing costs affect upstream value

    • Assess the commercial implications of take or pay contracts

    • Evaluate contracted volumes against production and throughput assumptions

    • Identify pricing and volume risks within project evaluations

    • Incorporate relevant commercial contract assumptions into economic analysis

    • Explain the relationship between market pricing and project cash flow

This module brings together the technical, financial and commercial elements covered throughout the course. Participants evaluate an integrated LNG investment case covering upstream supply, transportation, infrastructure, pricing, contractual commitments and downstream value.

  1. IFRS 13 Fair Value Measurement

    • Establishes a recognised framework for fair value measurement

    • Provides principles for considering market-based valuation inputs

    • Supports understanding of valuation assumptions and market participant perspectives

    • Provides relevant context for valuation analysis within investment review

    • Helps distinguish fair value concepts from project-specific investment valuation

    Learning Outcomes

    • Integrate upstream, midstream and LNG economic assumptions

    • Evaluate complete gas value chain economics

    • Assess the combined effect of pricing, volumes, tariffs and contracts

    • Conduct structured scenario and sensitivity analysis

    • Identify the principal value drivers within an LNG investment case

    • Evaluate infrastructure and commercial assumptions within an integrated model

    • Present clear commercial conclusions from project evaluation

    • Support management review of LNG investment proposals

    • Apply a structured framework for comparing project development scenarios

    • Strengthen investment decision-making through integrated economic analysis

Certificate

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

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,400

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,400

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,400

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,400

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

Frequently asked questions

What does this Oilfield Economics & Project Evaluation course cover?

The course covers oilfield economics, gas commercialisation, LNG project economics, pipeline tariff modelling, netback pricing, infrastructure sharing, throughput assumptions and take or pay contracts. It provides an integrated approach to evaluating investment opportunities across the gas value chain.

Who is this course designed for?

The course is designed for petroleum economists, finance professionals, commercial teams, business development specialists, project managers, planning professionals, contracts specialists, pipeline professionals, technical personnel and senior managers involved in oil and gas investment decisions.

How is the course delivered?

Institute For Oil & Gas Training uses practical case studies, economic evaluation exercises, commercial scenarios, simulations and group analysis. Participants work through project assumptions and commercial situations that reflect investment evaluation activities within the oil and gas sector.

How does the course support LNG investment decisions?

The course connects upstream gas supply with transportation, processing, liquefaction and downstream market value. Participants assess pricing, throughput, infrastructure, contractual and cost assumptions to understand their influence on integrated LNG project economics.

What certificate is provided after completion?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course, subject to fulfilling the required attendance and participation requirements.

Next: 20 Jan 2027

4 dates available

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