These are the assumptions behind the Macquarie estimate.
For a theoretical 100 mbbl FPO oil project, this returns an NPV per bbl of US$3.40. Assumptions are as follows: ~ Oil price US$19/bbl real, Brent. ~ 100 mbbl oil project. ~ Peak flow rate 55,000 bopd. ~ 9 year production life. ~ Total OPEX and CAPEX US$710m. ~ Contractor share of oil for cost recovery: 60%. ~ Contractor share of profit oil up to 70% ~ Production bonus US$14m. ~ Corporate tax rate 25% ~ Real discount rate 10% after tax.
They assume long term oil price of $19 which seems overly conservative.
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