An interactive exploration and production business game and training workshop designed to improve commercial decision making skills and teamwork.

At the end of this training workshop, delegates will be able to: identify and quantify commercial criteria that influence major E&P industry investment decisions adopt a structured and integrated approach to commercial decision making in the workplace understand the impact of different assumptions on the commercial plans of an E&P company appreciate the impact of operational and technical decisions on asset and company profitability understand the impact of alternative methods of financing investment opportunities appreciate the role of multi-discipline teams in decision making

Participants are organised into small teams of 3-4 personnel. Each team will have exclusive use of a PC containing a realistic economic and financial model of an E&P company. This model will perform all the calculations necessary for teams to make decisions about their hypothetical company concerning exploration and development prospects. Teams play competitively against each other to determine which team has performed best at the end of the three day workshop.

This training workshop is aimed at personnel within E&P companies who are involved in, or new to, the commercial decision making process and who require a good grasp of the full commercial implications of the business opportunities and activities in which they are involved. This workshop will have particular appeal to explorationists, petroleum/reservoir engineers, negotiators, business development specialists, asset managers, project managers, petroleum economists, finance, planning and strategy professionals.

Delegates will benefit from having attended one or more of the following courses - Mastering Finance for Non-Financial Managers in the Petroleum Industry, Petroleum Project Economics and Decision Making and Field Development Economics and Risk Management.

Day 1
The objective on the first day of the workshop is to give delegates an adequate understanding of accounting and “bottom line” measures. Training is provided in:

• understanding profit/loss, earnings statements, the balance sheet, cash flow
  
• valuation of petroleum companies and reserves
  
• accounting and stock market indicators

The E&P Business Game simulation is used to play a scenario involving the acquisition of concessions.

Day 2
The objective of the second day of the workshop is to give delegates an adequate understanding of the economist’s investment appraisal tools and techniques. Training is provided in:

• the calculation of Net Present Value (NPV), Internal Rate of Return (IRR) and Profitability Index (PI)
  
• methods of dealing with risk and uncertainty and the calculation of Expected Monetary Value (EMV)
  
• the relationship between economic and accounting indicators

The E&P Business Game simulation is used to play a scenario involving a further appraisal decision.

Day 3
The objective of the third day is to consolidate the learning outcomes achieved during the first and second days by using The E&P Business Game simulation more extensively to make a number of reservoir development decisions.