Optimal Production of Crude Oil Based on Buy Back Contract: Case Study of Foroozan Oil Field
In this paper, the optimal production of oil from Forzooan field is extracted Based on Buy Back contract governing it. With regard to the role of the National Iranian Oil Company in managing operating process of the field, this optimal production is estimated in according to maximization net present value of NIOC from oil production of the field. Thus, in this paper in according to mechanism and information of fiscal regime of Buy Back contract, revenue and cost functions of NIOC for period of the contract is estimated and then based on target function of this study and using optimal control method Generalize Reduced Gradient (GRG) is estimated optimal production in the framework three scenario and three expected price conditions. Finally, from this study concluded that optimal production level has direct relation with expectations of price and depletion rate of the field and it has reserve relation with discount factor. Also because of obligation of protective production principal, optimal production level is lower than contractual production level.
Volume (Year): 3 (2016)
Issue (Month): 2 (July)
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