UWA Handbook 2017

Unit details

GENG5803 Investment Management for Field Development

Credit 6 points
(see Timetable)
Non-standard teaching periodUWA (Perth)Face to face
Content This unit is a hands-on industry grade course. It makes use of extensive real industry cases to illustrate the concepts taught. It covers (1) the concepts of the discounted cash flow model—time value of money, discounting, inflation, escalation, discounting, real versus nominal, money of the day, net present value; (2) economic indicators—internal rate of return, payback period, return on investment; (3) economic modelling—input forecasting, production, prices, capital costs, operating costs, depreciation, cost recovery; (4) advanced analysis—incremental economics, consolidations, ring fences, full cycle versus point forward decisions; (5) petroleum taxation—modelling Australian petroleum resource rent tax and royalty-excise regimes, production sharing contracts and other agreements, concessionary versus other regimes, progressive versus regressive regimes, world ranking of fiscal terms; (6) sensitivity analysis—scenarios, tornado diagrams, spider diagrams, waterfall diagrams; (7) describes the use of risk assessing methodologies are employed in economics i.e. expected monetary value—decision trees, value of information evaluations, Monte Carlo analysis; (8) oil company financial evaluation—cash flow versus profit, accounting systems, ratio analysis; (9) portfolio management theories—capital planning/allocation methods, efficient frontier; and (10) upstream versus downstream economics—basics of gas projects evaluation, netback pricing, transfer pricing and regulatory aspects.
Outcomes Students are able to (1) understand the role of economic evaluation in upstream/downstream project generation and clearly identify the value proposition of different types of projects; (2) understand the different types of Australian and international fiscal systems encountered within the industry and their impact on project value with a focus on identifying the central issues in the resource rent tax system; and (3) demonstrate the ability to build economic evaluation models for upstream projects; and (4) perform basic economic evaluation of oil and gas opportunities in the workplace.
Assessment Typically this unit is assessed in the following ways: (1) small assignment(s); (2) a major assignment; and (3) a final examination. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s) Associate Professor Zachary Aman
Unit rules
Prerequisites: enrolment in the Master of Engineering in Oil and Gas (62520)
Unit Outlinehttp://www.unitoutlines.ecm.uwa.edu.au/Units/GENG5803/TS-U-7/2017

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