Fiscal and tax terms and economic evaluation methods for oil and gas projects in Abu Dhabi

Abstract

The Middle East is the region with the lowest oil and gas production cost in the world and has always been the key area for investment by oil companies. With the large-scale bidding after the Iraq War, the number of bidding blocks provided annually in the Middle East has been greatly reduced, and the number of bidding blocks provided by the UAE government is relatively large. After the expiration of the existing contracts in 2014, the UAE government started block bidding and auction on a large scale, and offered favorable contract terms. The assets with great investment values attracted international oil giants. In this paper, based on the survey of bidding contracts of Abu Dhabi in recent years, fiscal and tax terms, demand markets, prices and costs to be focused on have been sorted out, an economic evaluation model for bidding blocks in Abu Dhabi has been established, and evaluation conclusions have been drawn through financial analysis and uncertainty analysis. Finally, the applicability of the economic evaluation analysis method and evaluation procedure has been verified through examples, so as to provide reference and enlightenment for international oil companies to participate in the new round of bidding of the UAE in the future.