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↑ + qG↓ · CG↓ + qW↓ · CW↓ | |||
Sales = q1 · Priceincome | Priceincome = Taxmining · Pricemarket |
where
FCFi | Free Cash Flow for i-th year | qO↑ | surface oil volumetric production |
Sales | qG↑ | surface gas volumetric production | |
COGS | qW↑ | surface water volumetric production | |
qG↓ | surface gas volumetric injection | ||
OPEX | qW↓ | surface water volumetric injection | |
CAPEX | CO↑ | production oil processing/transportation cost | |
Interest | CG↑ | production gas processing/transportation cost | |
IncomeTaxRate | CW↑ | productio nwater processing/transportation cost | |
Taxmining | CG↓ | injection gas processing/transportation cost | |
Pricemarket | CW↓ | injection water processing/transportation cost | |
Priceincome | mF↑ | fluid production lift cost | |
q1 | mF↓ | fluid injection lift cost | |
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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