| Author | Nuttapon Attakornwattana |
| Note | This internship report in partial fulfillment of the requirements for the
degree of Master of Engineering (Professional) in
Offshore Technology and Management |
| Publisher | Asian Institute of Technology |
| Abstract | Successful investing in oil and gas offshore projects is highly dependent on technology and
market conditions. An objective of an investor is to allocate resources to financially rewarding
projects. Traditional valuation tools do not consider change and risks during project life cycle.
Therefore, it is not enough to evaluate the project value. The real option approach can solve these
problems by managing the value of the flexibility to revise future management decisions with the
benefit of better information. This concept can be used to communicate management decisions to
capital markets, align value and strategy, and managerial flexibility. The objective of this report
is to provide a background to the concept and method of real options in oil and gas project
development. The suitability of real option valuation for investment decision making is also
discussed. |
| Year | 2011 |
| 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) | Sarunphong Articharte;Boswell, Laurence; |
| Scholarship Donor(s) | PTTEP ; |