Journal of the Korean Society of Mineral and Energy Resources Engineers ISSN:2288-0291(Print) 2288-2790(Online) 한국자원공학회지

Economic evaluation of oil and gas assets and investment is very important for the decision of participating in overseas oil and gas development projects and for the increase in profits. In consideration of the characteristics of the petroleum upstream business, evaluations should be carried out on the basis of reserve estimation, risk analysis of each exploration and production stage of the project, and the understanding of petroleum fiscal systems of the target countries. In this paper, the characteristics of the three stages of exploration, development and production, and the differences of the investment with the technical risk aspects, and the process of evaluation of project in actual business are explained. The fiscal and contract systems of petroleum industry are also summarized with the economic indices and cash flow models.