Article Sidebar
Published:
Jan 29, 2012Keywords:
Article Details
Copyright belongs to the Faculty of Engineering, University of Nigeria, Nsukka, Nigeria
The contents of the articles are the sole opinion of the author(s) and not of NIJOTECH.
NIJOTECH allows open access for distribution of the published articles in any media so long as whole (not part) of articles are distributed.
A copyright and statement of originality documents will need to be filled out clearly and signed prior to publication of an accepted article. The Copyright form can be downloaded from https://www.nijotech.com/downloads/COPYRIGHT%20FORM.pdf while the Statement of Originality is in Statement of Originality.pdf (nijotech.com)
For articles that were developed from funded research, a clear acknowledgement of such support should be mentioned in the article with relevant references. Authors are expected to provide complete information on the sponsorship and intellectual property rights of the article together with all exceptions.
It is forbidden to publish the same research report in more than one journal.
Main Article Content
Risk Analysis Applied in Oil Exploration and Production
Abstract
This research investigated the application of risk analysis to Oil exploration and production. Essentially, different organizations approach risk analysis from various perspectives depending on the company’s policies. Some problems were identified as the causes of poor risk analysis procedures such as wrong concepts and miscommunication by the risk analysis staff. The risk associated with investments in oil exploration and production among others include: risk of storm damage to offshore installations; risk relating to future oil and gas prices; risk of exploration or development of dry hole and environmental risk. The analysis in this work is based on the actual field data obtained from Devon Exploration and Production Inc. The Net Present Value (NPV) and the Expected Monetary Value (EMV) were computed using Excel and Visual Basic to determine the viability of these projects. Although the use of risk management techniques does not reduce the uncertainty in Oil field projects; it reduces the impact of the losses should an unfavourable event occur.
