COURSEWORK QUESTION Question 1: The following question concerns the roles of the various organisations involved in the oil & gas industry. Consider the roles and activities of a typical Operator/Duty holder, Investor and Equipment Vendor in the context of an offshore platform. a. Identify the areas where the parties’ objectives are aligned (15%) Words 600 b. Identify areas of potential conflicts and how they might be overcome. (15%) Words 600 The answer should for all Questions, but not be limited to the expert knowledge, explain the roles and functions of the Operator/Investor/Equipment Vendor, the relationships that exist between them (O/I, O/EV, I/EV) for mutual synergies, benefits and potential conflicts and how it may be alleviated for a better working commercial relationship. ____________________________________________ Question 2: The following questions concerns petroleum economics and taxation regimes, legal arrangements and contractual relationships. a. Many developing countries have adopted a PSA regime for the governance of oil & gas activities because they believe it delivers a larger share of economic rent to the government. State whether you agree or disagree with this and explain your conclusion by comparing this to the structure of other possible regimes (e.g. Concession, JV, Service Agreement). (30%) Words 1200 There should be some compare and contrast for all arrangements. b. Using the evaluation model provided, identify the impact on the investing company IRR and capital efficiency (NPV/NPC) of varying capital cost inflation over a range from 0% to 25% (adjust cell F68 to do this). Explain how and why different views on inflation might affect a decision to invest. (10%) Words 400 Work Sheet attached for this question. 0,2.5, 5.0, 7.5%... and so on for the varying CCI. _____________________________________________________ Question 3: The following question concerns the risks faced by the industry and means of identifying and managing them. Describe the various graphical and numerical simulation evaluation techniques used by oil and gas companies to help them understand the reservoir development risks that they face. Comment of the value and likely use of each technique (15%) Words 600 Should include major techniques like adjustment rate, capital, pay back, single variable analysis (oil price/NPV), multiple variable analysis, Monte Carlo simulation, ALARP, Heat diagrams, etc. The strengths and weaknesses should be identified for each technique…50% risk 50% mitigation. ______________________________________________ Question 4: The following question concerns future oil and gas sources, social responsibility and climate change issues. Identify and discuss the factors driving the continued annual growth in global energy consumption (15%) Words 600 A running Table of Contents for each answer to be included. _______________________________________________________________ Student Request: To be guided by the notes after each question above, notwithstanding the expert opinions. The answer should be a continuous document with each Question properly identified and started on a new page. _______________________________________________________________ Please note: ➢ All essays must be typewritten, fully referenced and include a bibliography and must follow the RGU academic guidelines i.e. adhere to the word limit, have a clear structure and should be professionally presented. ➢ Essays must be free of plagiarism or borrowing from other academic sources and be the student’s own work. “Plagiarism is the practice of presenting the thoughts, writings or other output of another or others as original, without acknowledgement of their source(s). All material used to support a piece of work, whether a printed publication or from electronic media, should be appropriately identified and referenced and should not normally be copied directly unless as an acknowledged quote. Text translated into the words of the individual student should in all cases acknowledge the source.” Before submitting assignments, you should check through it to ensure that: • all material identified as originally from a previously published source has been properly attributed by the inclusion of an appropriate reference in the text; • direct quotations are marked as such (using “quotation marks” at the beginning and end of the selected text), and • a citation has been included in the list of references at the end of the text. ➢ Although the word limit is 4,000 words. The word count, exclusive of cover page, abstract, bibliography (showing Primary and secondary sources), references, and appendices must appear on the title page. ➢ The referencing (footnotes and publications/bibliograph) should follow the OSCOLA 4th edition format, be consistent and neatly presented.