Date: 18–20 May 2026
Venue: Royale Chulan Kuala Lumpur
Participating organisations: Mubadala Energy, Carimin Sdn. Bhd. and Idemitsu Gas Production (Vietnam) Co., Ltd.
SEMARAK Training successfully conducted the Application of Petroleum Economics programme from 18 to 20 May 2026 at Royale Chulan Kuala Lumpur.
The three-day programme welcomed professionals from Mubadala Energy, Carimin Sdn. Bhd. and Idemitsu Gas Production (Vietnam) Co., Ltd.
Throughout the programme, participants strengthened their understanding of petroleum project evaluation. They also explored how economic analysis supports investment decisions in the upstream oil and gas industry.
Applying Economics to Upstream Project Decisions
Petroleum economics plays an important role in upstream project evaluation. It helps organisations determine whether a project is commercially attractive and aligned with their investment objectives.
The programme focused on petroleum economics within Malaysia’s Production Sharing Contract (PSC) framework. It was designed for participants with intermediate-to-advanced knowledge.
During the sessions, participants worked through real-life examples and spreadsheet-based exercises. These activities showed how National Oil Companies and International Oil Companies evaluate projects and development opportunities.
One of the main topics was the difference between standalone analysis and incremental analysis.
Standalone analysis evaluates a project on its own. In contrast, incremental analysis measures the additional value created when the project is added to an existing contract area.
As a result, participants gained a clearer understanding of why incremental analysis is important for project evaluation.
Key Areas Covered
The programme covered several important areas of petroleum economics, including:
- Incremental evaluation under Revenue-over-Cost and sliding-scale PSCs
- Project-basis and consolidated contract-area analysis
- Buy-versus-lease evaluations
- Value drivers within petroleum contracts
- Interpretation of unexpected economic outcomes
- Portfolio analysis and optimisation
- The efficient frontier
- Challenges and limitations in portfolio decision-making
A Practical and Interactive Learning Experience
The programme combined technical presentations, discussions, practical exercises and spreadsheet-based evaluations.
This approach allowed participants to apply economic principles to realistic upstream scenarios. It also helped them understand how changes in commercial assumptions can affect project outcomes.
Although prior knowledge of petroleum economics was useful, the programme was structured as a standalone course. Therefore, participants from different professional backgrounds could follow the content and develop practical evaluation skills.
Supporting Better Investment Decisions
By the end of the programme, participants had gained a stronger understanding of how petroleum projects are evaluated, compared and prioritised.
The concepts and tools introduced during the sessions can support better decisions in:
- Project development
- Commercial evaluation
- Investment planning
- Portfolio management
SEMARAK Training extends its appreciation to all participants from Mubadala Energy, Carimin Sdn. Bhd. and Idemitsu Gas Production (Vietnam) Co., Ltd.
Thank you for your active participation, valuable discussions and contributions throughout the programme.
We remain committed to delivering practical and industry-relevant training that strengthens professional capabilities and supports organisational performance.
