Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)

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A Three-Phase Methodical Approach to Assessing the Effectiveness of Investment Projects In Oil and Gas Production

Authors
Uliana Vytvytska
Corresponding Author
Uliana Vytvytska
Available Online September 2019.
DOI
10.2991/smtesm-19.2019.35How to use a DOI?
Keywords
investment projects in oil and gas production, investment efficiency, cash flow formation, discount rates, time factor
Abstract

The article is devoted to the improvement of the methodological framework for evaluating the effectiveness of investments in oil and gas production. Particular attention is paid to the formation of cash flows, accounting for the time factor at various stages and stages of the life cycle of long-term investment projects in the oil and gas industry, which makes it possible to more reasonably evaluate their effectiveness under uncertainty and risk conditions. A new approach to the economic evaluation of investment efficiency has been developed, which combines the methods of differentiated accounting for the influence of the time factor at various stages of the life cycle of investment projects. It is proposed to carry out the division of the life cycle of investment projects for the development of oil and gas resources into three periods (phases): the period of investment expenditures (exploration, drilling), the payback period (rehabilitation) and the after payback (primary operational) period. For each period, it is envisaged to apply the relevant time factor accounting procedures and different discount rates, taking into account the risks of investing and cash flow generation.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
September 2019
ISBN
10.2991/smtesm-19.2019.35
ISSN
2352-5428
DOI
10.2991/smtesm-19.2019.35How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Uliana Vytvytska
PY  - 2019/09
DA  - 2019/09
TI  - A Three-Phase Methodical Approach to Assessing the Effectiveness of Investment Projects In Oil and Gas Production
BT  - Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)
PB  - Atlantis Press
SP  - 177
EP  - 180
SN  - 2352-5428
UR  - https://doi.org/10.2991/smtesm-19.2019.35
DO  - 10.2991/smtesm-19.2019.35
ID  - Vytvytska2019/09
ER  -