Scribd Logo
Upload

Welcome to Scribd!

  • Result Discussion Conclusion

    Uploaded by

    azym94
    8 views1 page
    The document analyzes and compares the returns from different fiscal regimes for oil and gas projects in Southeast Asia. It finds that the Thailand R/T Concession 1972 provides the highest returns, followed by the Indonesia FTP 1988 regime based on metrics like NPV, IRR, and PVI. However, it notes that these metrics don't fully capture a project's attractiveness when considering factors like operating costs. The document also discusses seven key factors that affect fiscal regimes and project returns, including royalties, bonuses, taxes, and production sharing. It concludes that while Thailand 1972 and Indonesia 1988 provided high returns, the later Indonesia PSC 2006 regime offers even higher project value and that the attractiveness of regimes in countries like Indonesia,

    Original Description:

    Original Title

    Result Discussion Conclusion.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document analyzes and compares the returns from different fiscal regimes for oil and gas projects in Southeast Asia. It finds that the Thailand R/T Concession 1972 provides the highest returns, followed by the Indonesia FTP 1988 regime based on metrics like NPV, IRR, and PVI. However, it notes that these metrics don't fully capture a project's attractiveness when considering factors like operating costs. The document also discusses seven key factors that affect fiscal regimes and project returns, including royalties, bonuses, taxes, and production sharing. It concludes that while Thailand 1972 and Indonesia 1988 provided high returns, the later Indonesia PSC 2006 regime offers even higher project value and that the attractiveness of regimes in countries like Indonesia,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    8 views1 page

    Result Discussion Conclusion

    Uploaded by

    azym94
    The document analyzes and compares the returns from different fiscal regimes for oil and gas projects in Southeast Asia. It finds that the Thailand R/T Concession 1972 provides the highest returns, followed by the Indonesia FTP 1988 regime based on metrics like NPV, IRR, and PVI. However, it notes that these metrics don't fully capture a project's attractiveness when considering factors like operating costs. The document also discusses seven key factors that affect fiscal regimes and project returns, including royalties, bonuses, taxes, and production sharing. It concludes that while Thailand 1972 and Indonesia 1988 provided high returns, the later Indonesia PSC 2006 regime offers even higher project value and that the attractiveness of regimes in countries like Indonesia,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Result, Discussion and Conclusion by Macai

    Mohd Muzaffar bin Azli

    2015249334

    RESULT & DISCUSSION


    The results from the table shows that Thailand R/T Concession 1972 gives the highest value of return to
    the investor, followed by Indonesia FTP 1988 fiscal regime. This is due to most high value of Net Present
    Value (NPV), Internal Rate of Return (IRR) and Present Value Index (PVI). However, high value of NPV,
    IRR and PVI do not present the level of a project’s attractiveness. As an example, very high IRR may only
    focus the importance of cash flows in early years and not towards the end and IRR do not take account
    the materiality of a project. Hence, NPV should be taken into account. Meanwhile, PVI value represent
    the value of profitability in terms of capital only; high operating cost projects will not promise the return as
    the stated value.
    In order to analyze the level of return of a project, there are 7 factors in total that should be considered.
    They are royalty, bonuses, cost recovery, profit split, income tax, specific fiscal arrangement and
    relinquishment scheme. Each government practices different fiscal regime and it will affect cash flows of a
    project. As an example, countries like Malaysia, Brunei and Indonesia have a similar royalty rate while
    countries such as Vietnam and Thailand implement a royalty based on production. The profit share in
    Vietnam and Brunei is determined by certain incremental production rate while in Indonesia, the
    production remaining after FTP and Cost Recovery is shared between the government and contractor.

    CONCLUSION
    The conclusion that can be made from the analysis is Thailand R/T Concession 1972 has the highest
    investment return value and is followed by Indonesia FTP 1988. However, by revising the fiscal term,
    Indonesia PSC 2006 provides a higher project value compared to others. It is known that the
    attractiveness of countries in SEA (Indonesia, Thailand, Brunei and Vietnam) are varies. Thus, it is crucial
    to come up with an ideal petroleum fiscal regime that will benefit both government and operators in the
    process of maximizing hydrocarbon recovery with minimum risk investment.

    You might also like