Studying online

There are now 2 possible online modes for units:

Units with modes Online timetabled and Online flexible are available for any student to self-enrol and study online.

Click on an offering mode for more details.

Unit Overview


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.

6 points
Not available in 2024UWA (Perth)Face to face

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.


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.

Student may be offered supplementary assessment in this unit if they meet the eligibility criteria.

Unit Coordinator(s)
Professor Zach Aman
Unit rules
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.
  • Contact hours provide an indication of the type and extent of in-class activities this unit may contain. The total amount of student work (including contact hours, assessment time, and self-study) will approximate 150 hours per 6 credit points.