GENG5803 Investment Management for Field Development
- 6 points
|Semester 2||UWA (Perth)||Face to face|
- 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.
- 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.
Supplementary assessment is not available in this unit.
- Unit Coordinator(s)
- Professor Zach Aman
- Unit rules
- enrolment in the Master of Engineering in Oil and Gas
the Master of Business Administration (Oil and Gas)
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.
- Books and other material wherever listed may be subject to change. Book lists relating to 'Preliminary reading', 'Recommended reading' and 'Textbooks' are, in most cases, available via the Booktopia Textbook Finder, which has the functionality to search by course code, course, ISBN and title, and may also be posted or available at the appropriate school's administrative offices. Where texts are listed in the unit description above, an asterisk (*) indicates that the book is available in paperback.