Petroleum Economics B.E Question Paper : unipune.ac.in

Name of the University : Savitribai Phule Pune University
Department : Petroleum Engineering
Degree : B.E
Subject Name : Petroleum Economics
Website : unipune.ac.in
Document Type : Question Paper

Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/unipune.ac.in/6802-BE-2003-Petroleum%20Engg.pdf

Pune Petroleum Economics Model Paper

University Of Pune :
B. E. (Petrolem Engineerng) Examination – 2013 :
(2003 and 2008 Course)
Time: 3 Hours
Max. Marks: 100

Related : Savitribai Phule Pune University Formation Evaluation B.E Question Paper : www.pdfquestion.in/6800.html

Instructions

1 Answers to the two sections should be written in separate answer-books.
2 Black figures to the right indicate full marks.
3 Use of semi log graph paper is allowed
4 Assume suitable data, if necessary.
5 Answer any three questions from Section I and any three questions from Section II

Model Questions

SECTION I :
Q.1 A) Following are the details of oil production form a well. Plot the information on suitable graph extrapolate time required to decline to economic limit of 500 BOPD
Describe the pattern of declining in production. What is the OOIP, if original recovery of oil was 22% If production reaches to 500 BOPD then what is the total production of oil with recovery percent? [15]
B) Write a detailed note on guidelines given by SPE and UN for the evaluation of petroleum reserves and resources [10]
OR
Q.2 A) An oil field is estimated to have total reserves amounting to be 800,000 bbl. The performance prediction trend has shown a graph of an initial rate of 400 BOPD to an economic limit of 30 BOPD. Calculate the total time on production assuming. successively the following values of parameter b: (a) b= 0 (b) b= 0.5 and (c) b = 1.0
B) Write in brief about following
1) Reserves Auditing
2) Oil differential [10]
Q. 3 A) The company management has opportunity of investing $50 million in an oil field with low risk, which has economically producing capacity of 12 years. The project would require an investment of $ 5 million at year 5 and again at year 10 of $ 5 million. Annual maintenance cost would be $ 1 million throughout the tenure of the project. The interest rate for the first eight years is 10%, and for the last four years will be 12%. What is the present worth of this cash flow? Draw a cash flow diagram for the above data [15]
B) Write notes on any two of the following
a) Investment Yardsticks,
b) Sensitivity Analysis,
c) Reserves to Production ratio (R/P)
d) Key international benchmark grade of oil
[10]
OR
Q. 4 A) The project under consideration requires an investment of $ 120,000 which will result in the cash flow generation for next five year as $ 40,000, $ 50,000, $ 30,000. $ 30,000 and $ 20,000 respectively. Calculate the NPV at 10% and also the DCFROR for the project. [15]
B) Write a note on Production and Demand of hydrocarbons in India
SECTION II :
Q. 5 A) Write notes on any two of the following :
1) Profitability in projects and equivalence of field size in different countries within the framework of Production Fiscal System
2) Expected Monetary Value , EMV
3) Depreciation and depletion
4) Production sharing contract [10]
B) A drilling company is considering bidding on a $ 150 million turnkey drilling contract for offshore oil wells. The company estimate that it has a 65% chance of winning the contract. It has three alternatives available
1) use the existing rig to drill the wells
2) by a new rig
3) subcontract the drilling to another drilling company Subcontracting is allowed in the fiscal documents. Probabilities and payoffs of each operations is given in following table Probability NPV (million dollars)
Using existing facility
High profit 0.35 60
Medium profit 0.45 30
Low profit 0.20 -20
Buying new rig
High profit 0.55 35
Medium profit 0.35 25
Low profit 0.10 -10
Subcontract
Medium profit 1.0 30
The cost of preparing the contract proposal is $ 1 million. If the company does not bid on this tender, it has an opportunity to make a guaranteed profit $ 10 million elsewhere. Construct a decision tree for this situation and advice the contractor about decision with proper justification and all calculations.
OR
Q. 6 A) An asset was purchased for $ 96,000 with an estimated service life of 10 year and has a salvage value of $ 12,000. Calculate its depreciation using straight line (SLD) and double declining (DDB) method. Prepare a plot of value against number of years and compare the result obtained by different results. [15]
B) A company is planning to drill a well. The company professionals estimate that there is a 65% chance that the well will be a producer and 35% change that it will be a dry well. If the well is successful, it is estimated that there is 60% chance that the well will have reserves of 30,000 barrels, 30% chance of 60,000 barrels and 10% chance of
90,000 barrels and NPV corresponding to each reserves value will be $
60,000 $120,000 and $ 150,000 respectively. The dry well cost is $
65,000. Draw a decision tree and give decision with proper justification. Preserve all calculations. [10]