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economies, are described further. Cash flow models were developed on Microsoft
Excel software.

3.1.1 Assumptions and Input Variables

This research uses three hypothetical field data for field sizes of 475 MM bbl,
1500 MM bbl and 2250 MM bbl that are in the range of typical field sizes of
Kazakhstan and are most suitable to be used in this research. Input data used to
construct cash flow models consist of contract durations, yearly production, CAPEX
and OPEX, and oil price. It is assumed and varies for each field under consideration
in accordance to the field size, as it is the determinant factor in project planning,
investment decisions and production planning. All the assumptions are taken as
approximated values from the real oil and gas projects of Kazakhstan. List of major
oil and gas projects of Kazakhstan with short descriptions is attached in Appendix G.
Field data for each hypothetical field, including production profile, CAPEX and
OPEX, are attached in the respective Appendices. Input variables are listed and
described below:

1. Contract durations

Contract durations for the smallest field with size of 475 MM bbl
is assumed 25 years. For other fields contract duration is 40 years.

2. Yearly oil production

Yearly oil productions obtained from available information on

production histories and future production planning of
Kazakhstan operating oil field.