Annex - Modelling Assumptions
Changes to Field Profiles
We have made three key changes to our previously assumed field profiles:
- We have reduced the assumed exploration periods from 10 years to 6 years and 4 years for offshore and onshore, respectively.
- We have increased the required post-tax rate of return from 10 percent to 15 percent.
We have adjusted field sizes so that they are (still) marginal from the perspective of an "integrated" explorer - i.e., an explorer which is able to use tax deductions as they arise.
| Field Assumptions | Onshore | Offshore |
| Field life (years) | 10 | 15 |
| Field Size | | |
| Condensate / (000's) barrels | 479 | 1,544 |
| Gas / PJ | 110 | 448 |
| Output per year | | |
| Condensate / (000's) barrels | 47.9 | 102.9 |
| Gas / PJ | 11.0 | 29.9 |
| Revenue | | |
| Oil price (USD, real) | 25 | Constant |
| Gas price (NZD, real) | 4 | Constant |
| Costs | | |
| Initial development cost | | |
| Amount | 5 | 300 |
| Development year | 5 | 7 |
| Exploration Costs | | |
| Number of years of exploration | 4 | 6 |
| Exploratory costs per year | 20 | 25 |
| [totals] | 80 | 150 |
| Annual operating cost | 20 | 20 |
| Abandonment Cost | 5 | 20 |
| Number of years after last operating year | 1 | 1 |
| Abandonment year | 16 | 23 |
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