Economy, information technology, resource management
Section editor – PhD in economics Krasnov O.S.
Article # 8_2012
12 p.
pdf  Analysis of the cash flow behavior of investment projects in the area of oil fields exploration and development depending on the discount rate
The issues of the Net Present Value behavior of the investment projects in the area of oil fields exploration and development depending on discount rate have been investigated. Two types of projects have been distinguished. The dependence diagram of the Net Present Value and discount rate has shown that lines of the first type projects have salient form, while the second type projects have concave one. The projects with negative and some positive cash flow are occurred among the first type projects; while among projects of second type both negative and positive cash flow appears.
Regularities of the Net Present Value different behavior are exposed. The results are useful for analysis and strategic planning of investment projects.
Key words: investment project, exploration, development, oil field, cash flow, net present value, discount rate.
article citation Kozlova M.A. Analiz povedeniya denezhnykh potokov investitsionnykh proektov razvedki i razrabotki neftyanykh mestorozhdeniy pri izmenenii stavki diskontirovaniya [Analysis of the cash flow behavior of investment projects in the area of oil fields exploration and development depending on the discount rate]. Neftegazovaya Geologiya. Teoriya I Praktika, 2012, vol. 7, no. 1, available at: http://www.ngtp.ru/rub/3/8_2012.pdf
References

   Ampilov Yu.P., Gert. A.A. Ekonomicheskaya geologiya [Economical geology]. Moscow: Geoinformmark, 2006, 329 p.
   Esipov V.E., Makhovikova G.A., Buzova I.A., Terekhova V.V. Ekonomicheskaya otsenka investitsiy [Economical evaluation of investments]. Saint Petersburg: Vektor, 2006, 288 p.
   Galasyuk V.V., Galasyuk V.V., Vishnevskaya A. Metod NPV: Fundamental'nye nedostatki [The method of NPV: Fundamental flaws]. Finansovyy Direktor, 2005, no. 1.
   Galasyuk V.V., Galasyuk V.V., Vishnevskaya A. SSF – Luchshaya al'ternativa NPV: Fundamental'nye nedostatki [ССF as the best alternative to NPV: Fundamental flaws]. Finansovyy Direktor, 2005, no. 3.
   Gert A.A., Suprunchik N.A., Nemova O.G., Kuz'mina K.N. Stoimostnaya otsenka neftegazovykh mestorozhdeniy i uchastkov nedr [The valuation of oil and gas fields and subsoil blocks]. Moscow: Geoinformmark, 2010, 195 p.
   Mackevicius J., Tomasevic V. (2010) Evaluation of investment project in case of conflict between the internal rate of return and the net present value methods. Ekonomika. Vol.89(4), pp. 116-130.
   Makarov A.V. Ekonomicheskie voprosy proektirovaniya i razrabotki neftyanykh mestorozhdeniy [Economical issues of projecting and development of oil fields].Saint Petersburg: Nedra, 2009, 196 p.
   Peter R. Rose (2003) Risk Analysis and Management of Petroleum Exploration Ventures – AAPG Methods in Exploration Series, No. 12. Published by American Association of Petroleum Geologists, Tulsa, Oklahoma, U.S.A. – 164 p.
   Staroverova G.S., Medvedev A.Yu., Sorokina I.V. Ekonomicheskaya otsenka investitsiy [Economical evaluation of investments]. - Moscow: KNORUS, 2006, 312 p.
   Vilenskiy P.L., Livshits V.N., Smolyak S.A. Otsenka effektivnosti investitsionnykh proektov. Teoriya i praktika [Evaluating the effectiveness of investment projects. Theory and Practice]. Moscow: Delo, 2002, 888 p.