Reference no: EM131016521 , Length:

Please advise if you would be able to help with the attached coursework.

Assignment Questions:

Question 1: The following question concerns the roles of the various organisations involved in the oil & gas industry.

You are a small company making speciality oil field chemicals and services selling directly to both Oil majors (like Shell, BP, Exxon, etc) and their major contractors (like KCA Deutag, Halliburton, etc ). Your product is seen as ‘routine' and you have many competitors. At the moment all your contracts are lump sum. You want to expand your business (volume, stability and geography) and think that introducing other contractual arrangements and relationships with your customers might help achieve this.

a. What type of contractual arrangements would you ideally prefer and why?
b. How might you achieve this transition?

Question 2: The following questions concerns petroleum economics and taxation regimes, legal arrangements and contractual relationships.
a. Prepare an analysis for the investment manager of a major oil & gas company outlining the differences between the mechanisms which govern Concession, PSA andJoint Venture regimes (in which a company or consortium of companies enters into a JV with the government)and which you would recommend as best suited to investment in a country with no previous oil and gas industry presence.

b. Using the evaluation model provided, identify the range of outcomes (measured in terms of NPV and IRR) for oil production rate changes of +/- 20%, gas production rate changes of +/- 30% and an increase to 15% or decrease to 5% in the oil production decline rate. (Vary each of these individually, not all at once.)Indicate why you think the results follow the observed patterns and suggest what actions the company and the government might consider taking based on these observations.

Question 3: The following question concerns the risks faced by the industry and means of identifying and managing them.

An oil & gas company signs a reimbursable contract with an EPC contractor, requiring the contractor to engineer, procure, install and commission an oil production platform. The oil & gas company has a target price for the project of $250 million. What risks might cause the final cost to be more or less than this target price?

Question 4: The following question concerns future oil and gas sources, social responsibility and climate change issues.

The BP Statistical Review shows that, despite growing annual consumption of oil and gas, the remaining recoverable reserves have consistently grown each year. Explain the concept of the widely used terms of "carbon budget" and "un-burnable carbon", and discuss the effect that these concepts will have on the remaining recoverable reserves.

Assignment Requirements

4000 word total.

• Includes your answer, tables, figures, graphs and any reference identification within the body of the text.
• Excludes reference list, references in footnotes, index,references and appendices.

Please note that appendices may only be used to support report conclusions, and must not to include new material or arguments not made in the report itself.

Excessive use of appendices or the inclusion of .pdf or .jpg picture images of tables or text to avoid the 4000 word limit will be regarded as a deliberate attempt to avoid the word count limit and will be penalised, at the markers discretion, by having up to 10 marks deducted from the final score.

Your work should be supported with examples from relevant texts (e.g. textbooks, web sites), papers and current journal articles.
Please ensure that:

- All material that is quoted is properly attributed by the inclusion of an appropriate reference in the text.
- Direct quotations are marked as such (using "quotation marks" at the beginning and end of the selected text)
- Your submission must include responses to all of the questions set out in the 4 Coursework Questions above.
- No executive summary, conclusion or introduction required.

Attachment:- OilGas Management - Petroleum Economics - Workshop worksheet.rar