1. Introduction to Project Economics in Oil & Gas

• Importance of economic evaluation in the energy industry

• Role of project economics in decision-making and investment planning

2. Key Economic Concepts and Terminology

• Capital expenditure (CAPEX) and operational expenditure (OPEX)

• Revenue, cash flow, and profitability

• Economic indicators: NPV, IRR, Payback Period

3. Phases of an Oil & Gas Project

• Exploration, appraisal, development, and production stages

• Economic decision gates at each project phase

4. Cost Estimation Fundamentals

• Definition and purpose of cost estimation

• Levels of cost estimates (Conceptual, Budgetary, Definitive)

• Factors influencing cost estimates

5. Components of Project Cost

• Drilling and completion costs

• Facilities, equipment, and infrastructure

• Labor, logistics, materials, and overheads

6. Estimation Techniques and Tools

• Analogous, parametric, and bottom-up estimating

• Software tools used in cost estimation (e.g., Aspen, Cleopatra, Excel models)

• Risk and uncertainty analysis in estimates

7. Economic Evaluation Methods

• Cash flow modeling and forecasting

• Discounted cash flow (DCF) techniques

• Sensitivity and scenario analysis

8. Cost Control and Budget Management

• Cost tracking and variance analysis

• Forecasting, reporting, and cost optimization

• Managing cost overruns and project changes

9. Fiscal Systems and Taxation in Oil & Gas Projects

• Production sharing contracts (PSC), royalties, and profit oil

• Government take, taxes, and incentives

• Impact on project economics and investment returns

10. Economic Risk and Decision Analysis

• Identifying economic risks and uncertainties

• Monte Carlo simulation and probabilistic modeling

• Decision trees and risk-adjusted returns

11. Case Studies and Practical Applications

• Example of economic evaluation for a drilling project

• Cost estimation of a small field development

• Lessons learned from past projects

12. Module Summary and Assessment

• Key takeaways and summary discussion

• Short quiz or group exercise on project cost estimation