| Author | Pereira, Elga Anita Torrezao |
| Call Number | AIT Thesis no.OTM-13-02 |
| Subject(s) | Oil fields--Evaluation
|
| Note | A thesis submitted in partial fulfillment of the requirements 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-13-02 |
| Abstract | The aim of this thesis is to study the comparison of two economic evaluation method namely real option method and discounted cash flow method. The real options method consider flexibility and uncertainties in the evaluation while traditi on discounted cash flow not. The objective of this study is to find out th e application of real option and traditional discounted cash flow for an o il field development. The evalua tion process using traditional evaluation discounted cash flow is by finding the net present value, inte rnal rate of return and payback period for the project while real op tions is by creating binomial lattice to find the value of options therefore, after all the va lues are achieved then compare it in order to find the best way of investment whic h give high return to the project. The conclusion from the study indicate the best way to invest for th e project using real options which gives more value compare to the traditional discounted cash flow. The evaluation for expanding option gives the option values of 69.23 MMUS$ due to its flexibility and hence, to concl ude the real option valuation let decision makers have choice the strategy that maximize the pr ofitability to the project. |
| Year | 2013 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. OTM-13-02 |
| 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.;Thitisak Boonpramote |
| Examination Committee(s) | Boswell, Laurence F. |
| Scholarship Donor(s) | Secretary of State for Natural Resources, timor Leste |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2013 |