Abstract

This model is a revised version of our model presented at the 7th Offshore South East Asia Conference, "An Oil and Gas Supply and Economics Model for Indonesia". The model's objective is to estimate how the level of efforts by the contractors in a basin will vary as physical properties, government policies and hydrocarbon prices vary.

The model consists of three submodels: discovery, development, and economics. The main program uses these three submodels iteratively to determine optimum investment, which gives maximum net present value for the contractors, as a function of contractor share and hydrocarbon prices for a basin.

This revised model was run with an actual traditional type production sharing contract on a personal computer spreadsheet. The former model assumed a simplified production sharing contract and was run using FORTRAN on a mainframe. Model results for both explored and unexplored basins are presented.