scholarly journals Analysis on the Proportion of Oil and Gas Profit Sharing Under the Cost Recovery PSC and Gross Split PSC Schemes

2021 ◽  
Vol 11 (12) ◽  
pp. 514-531
Author(s):  
Naufal Fauzan Katiandago ◽  
Ning Rahayu
Keyword(s):  
Oil And Gas ◽  
Profit Sharing ◽  
Cost Recovery ◽  
The Cost

scholarly journals Evaluating the Petroleum Contracts of Kurdistan Region in the Surveying and Applying the Deloitte Data (A Comparative Review)

2021 ◽  
Vol 8 (7) ◽  
pp. 236
Author(s):  
Beston Muhammed Qadir ◽  
Hazhar Omer Mohammed ◽  
Hawre Latif Majeed
Keyword(s):  
Oil And Gas ◽  
Cost Recovery ◽  
Large Contribution ◽  
Regional Government ◽  
Kurdistan Region ◽  
Oil Companies ◽  
Production Sharing ◽  
Comparative Review ◽  
Oil And Gas Resources ◽  
The Cost

A production sharing contract has been chosen by the Kurdistan Regional Government as supposedly the most appropriate contract model for the oil and gas resources of the Kurdistan Region, among several other forms of contract. In general, in terms of royalty, cost recovery, and sharing the residual sales as negotiated, the Kurdish model is similar to its foreign model, although the proportions are most likely to differ. The model of the Region specified 10 percent for the Royalty: Up to 45 percent for cost recovery, often between 7-9 percent of the company's share of the profit in the agreement. Investigating Deloitte reports and then comparing the 2017 to 2019 data shows the unstable output with a fair boost and stability at the later date as for 2017. A large contribution from the Kirkuk oil fields to the production of the overall region is noted until 16 Oct 2017. Around one-third of the revenues of oil went to the production oil companies, although as agreed for cost recovery, it is still less than 40 percent. The payment of the companies of Oil production could be explained as a collective sum between 9% of the profit oil and 25-28% of the sales oil's gross values! The cost recovery payment could not have been funded in the contract, which explains the region's claim about the debts of the companies, in its agreed manner.

scholarly journals Cost recovery in production sharing contracts: a comparative review of Southeast Asian jurisdictions

2020 ◽  
Author(s):  
Nicholas Lingard ◽  
Philip Morgan ◽  
Kate Apostolova ◽  
Jeremy Tan
Keyword(s):  
Oil And Gas ◽  
Practical Importance ◽  
Oil And Gas Industry ◽  
Southeast Asian ◽  
Cost Recovery ◽  
Future Market ◽  
Gas Industry ◽  
Comparative Review ◽  
Recovery Mechanisms ◽  
The Cost

Abstract While the current macro factors (such as the COVID-19 pandemic’s impact on oil and gas demand and lower crude prices) suggest a challenging period lies ahead, the oil and gas industry remains important to a number of Southeast Asian countries, representing a focus area for foreign investment, a driver of domestic auxiliary industries and a source of government revenue. This article focuses on key oil and gas jurisdictions in the region—namely, Indonesia, Malaysia, Philippines, Thailand and Vietnam—and provides a comparative overview of the cost recovery mechanisms in each country. Despite the practical importance of understanding how the cost recovery regimes are intended to operate in each of the relevant jurisdictions, there remains a little detailed commentary on the relevant legislative and contractual frameworks. By tracking how each of the five jurisdictions has modified and adopted cost recovery provisions as it considers appropriate for its particular investment needs, and comparing the jurisdictions surveyed across a range of measures, as reflected in Table 8, this article aims to provide current and future market participants with insights on cost recovery, both to support investment decisions and provide context for disputes that may arise.

Main approaches to estimating the cost of shareholder equity of oil and gas producers

2020 ◽  
Vol 26 (3) ◽  
pp. 685-697
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Minimum Cost ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Comparative Approach ◽  
Economic Activities ◽  
Advantages And Disadvantages ◽  
Oil And Gas Producers ◽  
The Cost

Subject. The study analyzes generally accepted approaches to assessing the value of companies on the basis of financial statement data of ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, Gazprom, Rosneft, LUKOIL, and others, for 1999—2018. Objectives. The aim is to determine the specifics of using the methods of cost, DFC, and comparative approaches to assessing the value of share capital of oil and gas companies. Methods. The study employs methods of statistical analysis and generalization of materials of scientific articles and official annual reports on the results of financial and economic activities of the largest public oil and gas corporations. Results. Based on the results of a comprehensive analysis, I identified advantages and disadvantages of standard approaches to assessing the value of oil and gas producers. Conclusions. The paper describes pros and cons of the said approaches. For instance, the cost approach is acceptable for assessing the minimum cost of small companies in the industry. The DFC-based approach complicates the reliability of medium-term forecasts for oil prices due to fluctuations in oil prices inherent in the industry, on which the net profit and free cash flow of companies depend to a large extent. The comparative approach enables to quickly determine the range of possible value of the corporation based on transactions data and current market situation.

ABOUT NECESSITY OF MATHEMATICAL MODELING OF THE BUSINESS PROCESS OF COST ESTIMATE CALCULATIONS IN THE CONSTRUCTION OF OIL AND GAS FACILITIES

2017 ◽  
pp. 139-145
Author(s):  
R. I. Hamidullin ◽  
L. B. Senkevich
Keyword(s):  
Mathematical Modeling ◽  
Quality Assessment ◽  
Business Process ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Construction Organizations ◽  
The Cost ◽  
Cost Of Construction

A study of the quality of the development of estimate documentation on the cost of construction at all stages of the implementation of large projects in the oil and gas industry is conducted. The main problems that arise in construction organizations are indicated. The analysis of the choice of the perfect methodology of mathematical modeling of the investigated business process for improving the activity of budget calculations, conducting quality assessment of estimates and criteria for automation of design estimates is performed.

Water Pricing and Cost Recovery in Water Services in Portugal

2013 ◽  
Vol 10 (4) ◽  
pp. 333-354 ◽  
Author(s):  
Alexandra Aragão
Keyword(s):  
Water Pricing ◽  
Cost Recovery ◽  
Water Services ◽  
Member States ◽  
Economic Agents ◽  
European Water ◽  
Polluter Pays Principle ◽  
Resource Costs ◽  
The Cost

The European water directive forced the Member States to rethink the regulation of water services. Water pricing is now guided by the cost recovery principle. The costs to take into account are manly the environmental and resource costs, but also the financial ones. Portugal was no exception. The evolution from a heavily subsidized activity to a business bound by the polluter pays principle required fast changes and a somewhat difficult adaptation both of economic agents and households.

Penetapan Tarif Ambulans Untuk Evakuasi Medis Berbasis Unit Cost

2021 ◽  
Vol 7 (1) ◽  
pp. 167-173
Author(s):  
Kelvin Riupassa ◽  
Narizma Nova ◽  
Endah Lestari ◽  
Sri Juniarti Azis ◽  
Wahyu Sulistiadi
Keyword(s):  
Recovery Rate ◽  
Unit Cost ◽  
Cost Recovery ◽  
Maintenance Costs ◽  
Total Cost ◽  
Medical Evacuation ◽  
Operational Costs ◽  
Emergency Ambulance ◽  
The Cost ◽  
Cost Components

Background: An ambulance is a vehicle designed to be able to handle emergency patients, provide first aid and carry out intensive care while on the way to a referral hospital. Ambulance operations require a large amount of funds obtained from APBD funds through tariffs that were passed through the DKI Jakarta Governor Regulation five years ago. For this reason, a new tariff is required to adjust to current conditions. Objectives: The purpose of this study is to calculate the unit cost of ambulance services in DKI Jakarta to be a consideration in the tariff setting policy in DKI Jakarta province. Research Metodes: This study uses a quantitative descriptive approach to obtain information about the unit cost of the Jakarta ambulance production unit. The method used is the calculation of real cost using the basis of the causes of costs. This research was conducted at the DKI Jakarta Emergency Ambulance using secondary data on investment costs, operational costs and maintenance costs in 2018. Results: The total cost of emergency ambulance in 2018 is known that the proportion of three cost components, namely operational costs, is 76%, followed by investment costs of 20% and maintenance costs of 3%. The calculation of the total cost of medical evacuation using the double distribution method is Rp. 98,915,016,805.00 divided by the number of medical evacuations in 2018 of 37,564 activities, the unit cost of medical evacuation for the AGD of DKI Jakarta Health Office is Rp. 2,633,215.00 without subsidies. APBD costs, while if the subsidy component is included in the calculation, the unit cost for one trip to the AGD of the Health Office is Rp. 604,071.00. This is still far above the current tariff of Rp. 450.00, so the cost recovery rate (CRR) is still below. 100%. Conclusion: From the three cost components consisting of investment, operational and maintenance costs,the largest proportion was operational costs at 76%. The Cost Recovery Rate has not reached 100% so that the existing rates have not covered the costs incurred.   Keywords: ambulance; price fixing; unit cost

Agile framework for capital projects

2021 ◽  
Vol 61 (2) ◽  
pp. 422
Author(s):  
Polly Mahapatra ◽  
Paris Shahriari
Keyword(s):  
Oil And Gas ◽  
Hybrid Approach ◽  
Oil And Gas Industry ◽  
Quick Response ◽  
Capital Projects ◽  
Gas Industry ◽  
Response To Change ◽  
The Cost ◽  
Early Phases ◽  
The Ideal

Under the increased pressure of rapidly changing market conditions and disrupting technologies, continuous improvements in efficiency become indispensable for all oil and gas operators. Traditional project management principles in the oil and gas industry employ rigid methods of planning and execution that can sometimes hinder adaptability and a quick response to change. Considering the potential that Agile principles can offer as a solution, the challenge, therefore, is to identify the ideal, hybrid, approach that leverages Agile while incorporating the traditional linear workflow necessitated by the oil and gas industry. This paper seeks to assess pre-existing literature in the application of the Agile principles in the oil and gas industry with a focus on Major Capital Projects (MCPs), backed by the successes experienced as a result of specific pilot projects completed at Chevron’s Australian Business Unit. In particular, this paper will focus on how agility has resulted in improvements to the cost, schedule, teaming and cohesion of MCPs in the early phases as well as key learnings form the pilot agility projects.

A Hybrid Petroleum Fiscal System for Investment in the Exploration and Production E&P of Hydrocarbon

2021 ◽  
Author(s):  
Oghenerume Ogolo ◽  
Petrus Nzerem ◽  
Ikechukwu Okafor ◽  
Raji Abubakar ◽  
Mohamed Mahmoud ◽  
...  
Keyword(s):  
Oil Field ◽  
Cost Recovery ◽  
Oil Price ◽  
Government Revenue ◽  
Profitability Analysis ◽  
Fiscal System ◽  
Exploration And Production ◽  
Host Government ◽  
The Cost ◽  
Spreadsheet Modelling

Abstract Globally, there are two types of petroleum fiscal system; the concessionary and the contractual petroleum fiscal system. The main differences between the two types of petroleum fiscal system is the ownership of the resources and some distinct fiscal terms. The contractual petroleum fiscal system specifies a cost recovery option and profit oil split unlike the concessionary petroleum fiscal system that allows the contractor to recoup his capital before payment of tax. This tends to increase the risk associated with the host government revenue as investment in the production of hydrocarbon is filled with uncertainties. There is a need to redesign the concessionary petroleum fiscal to enable it reduce the risk associated with the host government revenue by making the host government to earn revenue early from petroleum investment. This research therefore evaluated a hybrid petroleum fiscal system for investment in the exploration and production of hydrocarbon. The concessionary petroleum fiscal system was adjusted to include a cost recovery option. Petroleum economic model for investment in a typical onshore oil field was built using spreadsheet modelling technique with the fiscal terms in the hybrid petroleum fiscal system embedded in it. The cost recovery option and oil price in the model were varied between 0-100% and $20-$100 per barrel. The NCF, IRR and payout period of the investment were determined. It was observed that the lower the cost recovery option, the higher the host government revenue. From the profitability analysis of the investment in the hybrid petroleum fiscal system, it was observed that when the price of oil was $100/bbl, the NCF of the host government was $9146 and $8426.3 for 0% and 80% cost recovery option. The lower the cost recovery option, the higher the payout period and the lower the internal rate of return. Though lower cost recovery increased the host government revenue more but it may make the hybrid petroleum fiscal system unattractive for investment in periods of low oil price. Hence a higher cost recovery option was recommended for the use of this type of petroleum fiscal system.

scholarly journals Investing in community: community land trusts and affordable housing in Calgary

2021 ◽  
Author(s):  
Leah Dow
Keyword(s):  
Affordable Housing ◽  
Oil And Gas ◽  
The United States ◽  
Trust Model ◽  
Small Scale ◽  
Land Trusts ◽  
Land Trust ◽  
Viable Solution ◽  
Community Land Trust ◽  
The Cost

The cost of affordable rental units in Calgary is amongst the highest in Canada, despite a rental vacancy rate that is 3 percent higher than the national average (Canada Mortgage and Housing Corporation, 2017). Nearly 1 in 5 Calgary households are struggling to pay for shelter costs and as of 2016, more than 42,000 households were spending more than 50 percent of their incomes on shelter, putting this population at a greater risk of becoming homeless due to job loss or from some other unexpected financial hardship (City of Calgary, 2017). Counter to popular belief, economically depressed communities with weak rental and housing markets such as Calgary following the 2015 collapse of the oil and gas sector can be subject to a critical lack of affordable housing. A soft housing market cannot make up for an insufficient range of affordable and non-market housing options. In other cities facing similar challenges, especially those in the United States, the formation of Community Land Trusts has proven to be a viable solution for providing both affordable rental and affordable ownership opportunities for residents who are struggling to afford the cost of housing in their area. This paper explores whether the Community Land Trust model is an appropriate tool to augment Calgary’s limited supply of affordable housing and will end with five recommendations to encourage the adoption of the Community Land Trust model in Calgary. Key Words: affordable housing, affordable ownership, Calgary, community land trust, small-scale affordable development.

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