a. To make a good economic evaluation of a given investment project in the upstream oil and gas sector, certain basic data are required. State 5 appropriate data and their significance for a petroleum project evaluation.

b. Under commodity price forecasting, the oil price is one of the single most powerful parameter in an oil field valuation model in terms of its effect on NPV, and yet notoriously hard to forecast. Explain the origin and factors for this behaviour.

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ANSWER a 11 Objectives Making the decision to invest in petroleum exploration and production projects is always a very complicated endeavorThese projects are impacted by many high risk factors associa... View the full answer