A well-developed feasibility study is an essential foundation to allow project analysis and design activities to begin in a focused manner. It either refines a business case by examining a range of possible options and potential issues or forms a basis for developing one. Feasibility studies address issues that could affect the success of a potential project and evaluate the advantages and disadvantages of each option so that they can be classified. The final output of the study is a clear summary report that presents the proposed project. Capital and analysis of financial indicators associated with those operations.
Develop their abilities and applied skills to prepare feasibility studies for investment projects, replacement, renovation and expansion of existing projects.
Prepare a form for the financial feasibility study using the Excel program.
Apply various methodologies in promoting and increasing investment opportunities and analyzing their financial indicators.
Distinguish the financial rules and policies that must be mastered in order to tighten these studies, which ultimately leads to the establishment of successful investment projects.
Prepare economic and technical studies related to new projects or expanding existing ones.
Determine recent information related to the investment atmosphere.
Define the general framework, concepts and experiences learned from feasibility studies.
Managers and professionals responsible for preparing, writing and analyzing feasibility studies.
Feasibility study definitions
The objectives of the feasibility study
Feasibility study vs business plan
Feasibility study course
Steps for preparing a feasibility study
Elements of a feasibility study report
Executive summary
Feasibility study content
Market feasibility:
Marketing analysis and research
Types of marketing research data
Sales forecast analysis
Technical feasibility:
Necessary technical questions
Resource feasibility
Operational feasibility
Financial feasibility:
Project costs
Indirect costs
Ongoing costs
Preparing the financial model for the feasibility study
Average cost of capital (WACC)
Calculating shareholder cost of capital (CAPM)
Free cash flow (UFCF)
The final value of the project
Prepare sensitivity tables
Create an analysis of different scenarios
Financial Analysis Indicators:
Liquidity rates
Operations rates
Leverage rates
Insurance rates
Profitability rates
Investment Appraisal Analysis:
Break-even points for sales and quantity
Payback period (PP)
Net present value (NPV)
Internal rate of return (IRR)
Profitability Index (PI)
Summary and internal recommendations
Evaluating feasibility studies
Common mistakes in using the results of the feasibility study
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Large capital-intensive projects in the oil and gas industries require substantial - and mostly risky - investments in the acquisition, exploration, and subsequent operation and maintenance of new organizational assets.
The decision of whether or not to invest in new capital projects in the oil and gas industry starts with critical decisions during the exploration phase of new development or the expansion of an existing field. The decision-making tools used to analyze project risk under conditions of uncertainty will help companies to determine the probability of success or loss and will drive the decision to develop or abandon the well.
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