These are the assumptions behind the Macquarie estimate.For a...

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.