Real options analysis as an investment decision tool in oil and gas field development in Thailand | |
| Author | Chittree Rungcharoen |
| Call Number | AIT Thesis no.OTM-09-10 |
| Subject(s) | Oil fields--Decision making--Thailand Real options (Finance)--Thailand |
| Note | A thesis proposal submitted in partial fulfilment of the requirement for the degree of Master of Engineering in Offshore Technology and Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. OTM-09-10 |
| Abstract | This thesis presents the new approach of making investment decisions in the oil field development in Thailand, Real Options Analysis (ROA), and illustrates that what it is and how it can be utilized in the North and South onshore oil field development case study, which is located in the northern Thailand. It focuses on how the capacity of flexibility can maximize the expect project value and minimize the losses. There are two applications of solving the Real Options problems: the first method is the decision tree analysis plus real options and the second one is the Binomial lattice approach with a risk-neutral probability, based on Copeland and Antikarov (200 I). The results show that it can be beneficial to the project by obtaining the options, as it can add more value to the project, since the flexibilities have been taken into account. Moreover, it provides the fact that the Real Options Analysis achieves a higher expected value, compares to the traditional investment assessment (NPV) alone. It means that the higher flexibilities are added into the project, the better the decisions would be made, given the greater the expected value. |
| Year | 2009 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. OTM-09-10 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Offshore Technology and Management (OTM) |
| Chairperson(s) | Chiu, Gregory L.F. |
| Examination Committee(s) | Thitisak Boonpramote;Widjaja, Joko Harsono |
| Scholarship Donor(s) | RTG Fellowship |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2009 |