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.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.