Government Take In addition to capital and operating costs, major items of cash flow for most petroleum projects are royalties profit sharing, and taxes etc, or, collectively, any kind of so-called "Government Take" (that is cash flow or other kinds of economic benefit received by Governments). In many petroleum projects worldwide, Government Take is over 50% of net pre-tax cash flow. There are many different forms of Government Take, but State royalties, State profit sharing, income taxes and secondary (or "surplus profits") taxes are common internationally. These different forms of Government Take are discussed in later chapters.

CASH FLOW ANALYSIS

Introduction
Forecasts of cash flow are the foundation of almost all economic analysis carried out for
investment decision making in the oil and gas industry. At one extreme, the forecasts may be
very simple involving merely estimating the future cost and timing of a well. At the other
extreme, the forecasts can be very complicated and may involve estimating the cash flows of a
complete oil or gas field development over a period of 20 years or more together with detailed
fiscal calculations for each year.
There are several basic principles of cash flow analysis which are vital to the correct analysis of
investment alternatives. These include basic definitions, the difference between cash flow and
profit, the treatment of depreciation, the way in which inflation can be incorporated, concepts
of nominal and real cash flow, the treatment of loans, interest on loans and loan repayments.
Each of these principles will be dealt with in this chapter.

Welcome to the world of Petroleum Economics Evaluation

Dear all

As a part of this blog I am going to discuss Petroleum economics and project evalution. I am going to talk about various phases of E&P project right from Exploration to appraisal to development to completion to abandonment.

I am also going to talk about the various fiscal regimes prevalent in various parts of the world. any feedback is most welcome.