Part of Field Development Planning and Production Performance Monitoring based on NPV and EUR.
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COGS = mF↑ · CF↑ + mF↓ · CF↓ + qO↑ · CO↑ + qG↑ · CG↑ + qW↑ · CW↑ + qW↓ · CW↓ | |||
Sales = q1 · Priceincome | Priceincome = Taxmining · Pricemarket |
where
FCF | Free Cash Flow for each year (with year index "" omitted) | qO↑ | |
Sales | qG↑ | ||
COGS | qW↑ | ||
OPEX | qW↓ | ||
CAPEX | CO↑ | ||
Interest | CG↑ | ||
IncomeTaxRate | CW↑ | ||
Taxmining | CW↓ | ||
Pricemarket | mF↑ | ||
Priceincome | mF↓ | ||
q1 | CF↑ | η↑ · g · H · CE | |
CF↓ | η↓ · g · H · CE | ||
H | TVD of the hydrocarbon pay | ||
CE | electricity cost per energy unit | ||
g | Standard gravity constant (= 9.80665 m/s2) | ||
η↑ | fluid production efficiency (frac) | ||
η↓ | fluid injection efficiency (frac) |
The link between the above FCF algorithm and the general principals of P&L is given below:
FCF = OCF + CAPEX |
OCF = Net Income = EBT · ( 1 − IncomeTaxRate) |
EBT = EBIT − Interest |
EBIT = Sales − COGS − OPEX |
Petroleum Industry / Upstream / Production / Field Development Plan
[ Petroleum Asset NPV ][ Petroleum Asset PI ]
[ Statement of Income ( P&L) ]
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