Risk matrix for exploration portfolio analysis and management. This paper analyzed the existing economic efficiency indexes, added the social efficiency and environmental efficiency indexes. This chapter outlines the methods and processes used to evaluate the economic potential of an oil andor gas property. Project evaluation with democratic decision making. Modeling chinas offshore production sharing contracts. Current project stage the user should select the stage of the project. The most recent 2d seismic survey allowed the definition of several prospects. Study on economic evaluation index system of oilgas. Petroleum project economics and risk analysis workshop. These are by nature complex due to high uncertainty levels and capital intensity. This article presents basic aspects related to the economic evaluation process.
Although attaching great importance to the geological evaluation of the project, but few systematic economic evaluations. Palantircash is a traditional, clientserver application used for economic evaluation and the fiscal modelling of oil and gas assets. Economic evaluation of petroleum projects basic aspects. You will learn how to create financial models that are easy to maintain so you dont waste time figuring out. The subjects treated are petroleum economics, project evaluation and corporate finance. The training approach is based on principles of economic evaluation of petroleum related project with focusing on step by step developing economic models, determining economic indicators, evaluating and quantifying risks and uncertainties and making the right investment decision for the project. Has the project been appropriately responsive to political, legal, economic, institutional, etc. Economic analysis is now commonly applied in the evaluation of the cost efficiency of various types of projects, including highway and bridge projects. Orlandi encyclopedia of life support systems eolss these shows structural characteristics, relations of strength, economic and political. Robert clews project finance for the international petroleum industry fills a significant gap in project finance literature for both the academic and professional reader. Economic analysis assesses the net worth of a project for the economy. Evaluation of merger decisions held by the competition committee in june 2011. Petroleum economics free download as powerpoint presentation. Economic and financial determinants of oil and gas.
Guide on economic evaluation of transport projects evaluacion. Economics of offshore oil investment projects and production sharing contracts. For the draft project, in the design of which the fne participated, the. Get the corporate rigor and standards your company requires in order to manage the complexities in the economics. An introduction to petroleum refining and the production of ultra low sulfur gasoline and diesel fuel prepared for. Economists can perform reliable, repeatable analysis using the. Apart from the petroleum economics, risk analysis and project management programs, you can also choose to attend a training course, workshop or seminar in other categories of the oil and gas. Economics and risk assessment chapter fundamental economic equations for oil and gas property evaluation author peter r. What motivates merger and acquisition activities in the. A free and open source software to merge, split, rotate and extract pages from pdf files. Introduction to project economics in oil and gas upstream. Our pdf merger allows you to quickly combine multiple pdf files into one single pdf document, in just a few clicks.
Oil and gas property valuation and economics includes 30 papers on property and project valuation, risk analysis, international economics and fiscal regimes, and special focus topics. Organisation for economic cooperation and development. The portfolio management approach capitalizes on the fact that all projects interact, whether they involve exploration, development, production or. Wood and others published petroleum economics, risk and opportunity analysis. The economic appraisal of investment projects at the eib. Economics modeling for petroleum exploration and production projects considering risk and imprecise data thesis pdf available january 2016 with 11,365 reads how we measure reads. Economic analysis of liquefied natural gas floating. Pdf economics modeling for petroleum exploration and.
Revielv paper economic evaluation of oil exploration projects. This cd also includes selected papers from two out of print volumes spe reprint series no. Economic evaluation of prospects and producing properties. The economic and financial performance is evaluated on the basis of npv, irr and payback. Economics for oil and gas projects under conditions of certainty and uncertainty. Memorandum 082014, department of economics, oslo nyborg, karine.
Energy project economics and measures of performance project cash flow analysis, discounting cash flow to obtain present value and internal rate of return, the cost of capital and the effect of debt financing, other measures of project performance. Project finance for the international petroleum industry. Economics and risk analysis is critical for investment decisions, budgeting, planning, reserves, and other business processes. Explore top 10 project economics list, economics project topics, economics project topics list or ideas, economics based research projects, latest synopsis examples, abstract, strucutres, base papers, proposal thesis ideas, corporate phd dissertation for economics management students, essay reports in pdf, doc and ppt for final year mba, bba diploma, bsc, msc, btech and mtech students for the. Economic evaluation, reserve size, montecarlo simulation. Chapter 8 petroleum for the foreseeable future, oil will remain a critical fuel for the united states and all other industrialized nations. Estimating the price effects of mergers and concentration. In contrast, in a production sharing system pscpsa the state grants the investor a. The evaluation model is central to understanding a project and valuing each partys interest. Also, to avoid repetition of the phrase oil andor gas, the term oil is used as a reference to both oil. A guide to the strategies and techniques for building project evaluation models paperback april 20, 2006 by amr rezk author. How does project evaluation link to strategic plans and the budget process. Production sharing contracts have been used in the development of chinas offshore petroleum resources since 1982, but the mechanism in which the fiscal terms impact project economics.
The model is the basis for communicating among project team members, managers, and partners. This pdf is a selection from an outofprint volume from the national bureau of economic research volume title. Please visit the course list builder to get started. This article presents the risk analysis and economic evaluation of the potential development of three prospects offshore. Flow chart for analysing the oil and gas projects economics economic and commercial aspects of indonesian psc cost recovery, ftp, dmo, incentives packages, ring fences, block basis vs. Risk analysis and economic evaluation of oil and gas.
Economic evaluation of petroleum projects basic aspects dr. Changing variables economic evaluations are made based on assumed parameters these parameters are likely to change over life of field such changes would affect the feasibility of the project. Petroleum project economics 06 sensitivity analysis. In this discussion, the terms property and project are used interchangeably as the objects of evaluation. Environmental valuation versus physical unit indicators. Economic evaluation is an essential step for assessing and studying and selecting new petroleum projects which involve different activities. Accept all projects with npv 0 drop all projects with npv project economic decision criteria net present value mai 2004 ppm 2nd workshop of the china case study 30 project cashflow present value a 200, 120,140 25 b 390, 270, 220 37 c 600, 300, 350 38 discount. This book provides a practical guide to project finance for the international petroleum industry, covering financial markets, sources and providers of finance, financial structures, and capital raising processesand including case studies that highlight industry players, risks, economics. Combine analyses, rank and select preferred option. Hence, this 3day program is designed to equip you with an indepth knowledge of the economics and challenges in oil and gas projects to aid you in achieving the highest investment evaluation. Economic evaluation of oil exploration projects arso putnikovic and hrvoje lipov ac key words. Introduction the financial year 200708 witnessed a slew of acquisitions across diverse sectors of the economy in india.
Estimating the price effects of mergers and concentration in the petroleum industry. Textbooks can only be purchased by selecting courses. Also, maintenance costs are incurred repeatedly during a project. Pdf petroleum economics, risk and opportunity analysis. This model is designed to provide screening economics for the evaluation of oil and gas exploration prospects and discoveries on the nova scotian shelf, either as tie. The existing economic evaluation index system of oilgas exploration project lacks environmental efficiency index and social efficiency index, and has no definite risk index.
Project evaluation and programming i mit opencourseware. Economics econ210d presentation 6 sensitivity analysis for changing variables week 6. Study on economic evaluation of oil and gas exploration. An economic analysis methodology for project evaluation. Petroleum economics net present value internal rate of. Also, to avoid repetition of the phrase oil andor gas, the term oil is used as a reference to both oil and gas unless specific reference to one or the other is necessary.
Department of economics, university of ibadan, nigeria 2 adrian j f. Economic evaluation, as a tool or process, is used by many parties. Panel data combine the advantages of both types of information. There is a lot of money invested in exploration each year in china. Asymmetric information, corporate finance, and investment. Product economics crack spread estimates the value added by refining as an industry 4 standard spreads 5. Economic evaluation consists of two major objectives.