02-17-2014, 07:41 PM
I wonder how people arrive at the value of US $ 750 M. I did as well but was not convinced of my maths.
Assumptions:
1. IPI share after deduction state and landowner part: 17%
2. Price per 1% if IOC opts to reduce: US $ 50 M
3. Estimated sunk cost of drilling: US $ 600 M
Calculation
Buy out license: 17*50= 850
Costsharing sunk cost 17*600 -102
----
748
It can be argued that IOC not really opts to reduce the interest. In the case of Tricerops IOC was able to sell 10% to a Columbian company. So, IOC could choose to buy out Civelli in 2030 when they really need the gas because the field is almost depleted.
Assumptions:
1. IPI share after deduction state and landowner part: 17%
2. Price per 1% if IOC opts to reduce: US $ 50 M
3. Estimated sunk cost of drilling: US $ 600 M
Calculation
Buy out license: 17*50= 850
Costsharing sunk cost 17*600 -102
----
748
It can be argued that IOC not really opts to reduce the interest. In the case of Tricerops IOC was able to sell 10% to a Columbian company. So, IOC could choose to buy out Civelli in 2030 when they really need the gas because the field is almost depleted.