CBE4031 Oil and Gas Economics and Contracts-economic parameters


Literature review:

Risk management and Risk Mitigation in oil and gas field development

Discussion and Critical Analysis on cash flow model and sensitivity analysis:

Build a cash flow model (using Excel Microsoft office) from field production profile and justify the profitability of project for the following scenario. In 2004 Petro-Canada acquired 30% equity interest in the Russell field for US$ 840 million. Appraise the Russell field at 2004 and determine whether or not the price Petro-Canada paid for its 30% share of the project represents a real rate of return of more than 15%. 30 Marks Additionally perform a sensitivity analysis with respect to economic parameters such as inflation, oil and gas prices, and discount rate to capture risk of project for Petrol Canada. Support your discussion using Tornado chart extracted from @RISK software for the executed sensitivity analysis.  

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