GENG5803 Investment Management for Field Development

Credit
6 points
Offering

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Not available in 2021UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
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
Indicative assessments in this unit are as follows: (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)
Professor Zach Aman
Unit rules
Prerequisites:
enrolment in the Master of Engineering in Oil and Gas or the Master of Business Administration (Oil and Gas) or the Master of Renewable and Future Energy
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit, one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus.