TY  - JOUR
TT  - Economic Evaluation of Nigerian Marginal Oil and Gas Field using Financial Simulation Analysis
AU  - Akinwale, Yusuf Opeyemi
AU  - Akinbami, John-felix Kayode
PY  - 2016
DA  - September
JF  - International Journal of Energy Economics and Policy
JO  - IJEEP
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4553
SP  - 563
EP  - 574
VL  - 6
IS  - 3
KW  - indigenous
KW  - marginal oil and gas field
KW  - Financial Simulation
KW  - government
N2  - Marginal oil and gas field could contribute immensely to wealth creation, employment generation and confidence in local oil firms if properly exploited by the indigenous firms. Despite the laudable marginal field initiative by the Government, indigenous players still face challenges in exploiting these fields in Nigeria. This study evaluates the fiscal regime and the economic factors that could be hindering oil field development among the indigenous oil firms. The result of the financial cash flow modelling found that the marginal oil field’s project is viable with post-tax Net Present Value (NPV) and Expected Monetary Value (EMV) above $29 million. The petroleum profit tax, royalty and crude oil price have more impacts on the field’s NPV. The study suggests a periodic assessment of the fiscal regime and appropriate policy by the government to encourage the local players in developing the marginal oil field.
UR  - https://dergipark.org.tr/tr/pub/ijeeep/issue//351114
L1  - https://dergipark.org.tr/tr/download/article-file/361655
ER  -