The Royalty & Tax Contract is one of the most common cooperation modes in the international petroleum industry. Under this mode, contractors take the share of net oil and gas reserves in kind, and pay royalties, income taxes and other taxes/fees to the landowner. The net reserves owned by a contractor refer to the remaining economical recoverable reserves that the contractor can obtain during the remaining contract period, and represent the contractor’s actual revenue. Taking the XX project in Kazakhstan as an example, this paper presented the method for estimating net oil and gas reserves under the Royalty & Tax Contract, discussed how the production, decline rate, development plan, oil prices, costs and taxes affect net reserves from the technical, economic, commercial and engineering perspective, and made sensitivity analysis of the most critical influence factors like oil production, oil prices, operation expenditure and investment. Finally, some development optimization and evaluation strategies were proposed to maximize the contractors’ economic benefits.
Africa is a key area for overseas oil and gas investment cooperation due to the low degree of oil and gas exploration and great resource potential. All oil and gas resource countries have certain common characteristics in contract modes, fiscal and tax terms, economic conditions, infrastructure and bidding methods. A theoretical system of rapid economic evaluation technology suitable for the characteristics of Africa can be established to provide the methods and basis for investment decisions of oil and gas development projects in Africa. In this paper, on the basis of a systematic study on oil contract modes in Africa and the legal terms, sales market, actual operations and evaluation and prediction parameters to be focused on, an economic evaluation index system has been established, including analysis framework establishment, financial benefit analysis and uncertainty analysis; finally, an oil and gas development project in Africa is taken as an example to verify the above-mentioned rapid economic evaluation technology. This technology system is applicable to economic evaluation of most oil and gas development projects in Africa, covering the possible factors, scenarios and problems in the process of project evaluation, facilitating the realization of a rapid and effective economic evaluation process and the achievement of scientific and reasonable results.
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