hosein veisi; Hamed Sahebhonar; Freydon Asadi; Mostafa Pourkaveh Dehkordi; Ali Taherifard
Abstract
The contract for the development of phase 11 of South Pars has been signed by a consortium of Total in France with a share of (51%), CNPC in China (30%), and Petropars Iran (19.9%) in July 2017. By using a comprehensive and accurate model designed in this research, all the aspects of the mentioned project, ...
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The contract for the development of phase 11 of South Pars has been signed by a consortium of Total in France with a share of (51%), CNPC in China (30%), and Petropars Iran (19.9%) in July 2017. By using a comprehensive and accurate model designed in this research, all the aspects of the mentioned project, including technical issues, production profile, gas price, project costs, and project revenues were evaluated financially and economically with the consideration of the fiscal and economic components of the development contract in the dynamic manner. Finally, regarding the results, executive suggestions were stated in order to improve the fiscal regime of the contract. According to the findings, the fiscal regime of the contract is so-called regressive and the revenue increase or decrease has no effect on the contractor’s profitability. The most significant drawback of the contract is the pricing mechanism of the produced gas, causing a false price followed by an overestimate of the project’s profit and underestimate of the contractor's take and creating an implicit obligation for repaying the contractor’s dues from their revenues of other hydrocarbon fields of the country in the case of petroleum and gas condensate price drop. The results show that during rich gas pricing, in the case of realistic pricing of the produced gas, the foreign contractor's discounted take would increase from 6% to 27%, and on the opposite side, the government's take would decrease from 92% to 67%.
Ali Taherifard; Roholla Mahdavi; Hamed sahebhonar; Mohamad Ali Khakpour; Java keypour
Abstract
The survey of Associated Petroleum Gas (APG) flaring illustrate that about 40 million cubic meter of APG have flared in oil operating regions at 1395 year. High volume of Associated Petroleum Gas (APG) flaring and problem of Notional Iranian Oil Company (NIOC) for execution of APG gathering plans has ...
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The survey of Associated Petroleum Gas (APG) flaring illustrate that about 40 million cubic meter of APG have flared in oil operating regions at 1395 year. High volume of Associated Petroleum Gas (APG) flaring and problem of Notional Iranian Oil Company (NIOC) for execution of APG gathering plans has led to do policies such as auction of APG and transfer of NGL units to private sector by this company. Requisite for implementation of this policies that means present private sector in APG gathering plans is creation of given set up and framework in relations between NIOC and private sector. One of the cases that has important role in APG plans, is determined APG Pricing Model. So in this paper, meanwhile explained gas pricing models, a model was suggested for APG pricing. The main results of this study is pricing model for APG assuming sale to NGL unit such as NGL-3200 in which this model is based on fundamental principles such as type of use APG, gas quality, environmental issues, thermal value of gas and liquid content. Moreover, employing this model for feed pricing of NGL-3200 unit shows that minimum and maximum of APG price for this unit 5 and 8.2 cent per cubic meters Respectively. Also, sensitivity analysis presents that change of utilization rate, price of product from APG processing and capital cost can be effective on APG price
