1. Describe the business model of an oil and gas company.

2. Think about the best tool for cost (choose one paradigm)
3. Describe a simple models for plan and control for 20 years (*xls file). Base for control: year by year, mon

0,5 MM barells/year. (Benchmarking price= 0,8 Brent)

Charter: US$ 10 MM/month. - fixed cost
Operational Cost: US$ 3MM/month - fixed cost.
Chemical products US$ 8,00/barrel - variable cost
Interest and discount rates; manpower, setup and disposal costs (no relevance).

Brent 74.72 59.776

brent rate 80%
Growth 0.00%

Volume MM 0.500

Revenue 30
Variable Costs 8 per barrel - 4
Gross Margin 26

Fixed Costs (charter) 10 per month - 120

Operating Cost 3 per month - 36
Profit/Loss - 130

Volume 1
Revenue 30
Costs 160
Profit/Loss - 130

-
1 2 3 4 5 6 7
 1

-
1 2 3 4 5 6 7

Conclusion
It can be seen in the graph that the volume, revenue, costs and profits and losses remained stable with los
control: year by year, month by month.

2 3 4 5 6 7 8 9 10

0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500

30 30 30 30 30 30 30 30 30
- 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4
26 26 26 26 26 26 26 26 26

- 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36
- 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130

1 1 1 1 1 1 1 1 1
30 30 30 30 30 30 30 30 30
160 160 160 160 160 160 160 160 160
- 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130

Island Oil

5 6 7 8 9 10 11 12 13 14 15 16 17 18

Volume Revenue Costs Profit/Loss

 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Volume Revenue Costs Profit/Loss

es remained stable with losses.

 11 12 13 14 15 16 17 18 19

0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500

30 30 30 30 30 30 30 30 30
- 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4
26 26 26 26 26 26 26 26 26

- 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36
- 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130

1 1 1 1 1 1 1 1 1
30 30 30 30 30 30 30 30 30
160 160 160 160 160 160 160 160 160
- 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130 - 130

200
150
100
50
-
-50
-100
-150
16 17 18 19 20
 50
-
-50
-100
-150
16 17 18 19 20
 20

0.500

30
- 4
26

- 120
- 36
- 130

1
30
160
- 130
1. Describe the business model of an oil and gas company.
2. Think about the best tool for cost (choose one paradigm)
3. Describe a simple models for plan and control for 20 years (*xls file). Base for control: year by year, month

0,5 MM barells/month. (Benchmarking price= 0,8 Brent)

Charter: US$ 10 MM/month. - fixed cost
Operational Cost: US$ 3MM/month - fixed cost.
Chemical products US$ 8,00/barrel - variable cost
Interest and discount rates; manpower, setup and disposal costs (no relevance).

Brent 74.72 59.776

brent rate 80%
Growth

Volume MM 6.000

Revenue 359
Variable Costs 8 per barrel - 48
Gross Margin 311

Fixed Costs (charter) 10 per month - 120

Operating Cost 3 per month - 36
Profit/Loss 155

Volume 6
Revenue 359
Costs 204
Profit/Loss 155

-
1 2 3 4 5 6 7 8
 3

-
1 2 3 4 5 6 7 8

Conclusion
It can be seen in the graph that the volume, revenue, costs and profits and loss
control: year by year, month by month.

2 3 4 5 6 7 8 9 10

6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000

359 359 359 359 359 359 359 359 359

- 48 - 48 - 48 - 48 - 48 - 48 - 48 - 48 - 48
311 311 311 311 311 311 311 311 311

- 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36
155 155 155 155 155 155 155 155 155

6 6 6 6 6 6 6 6 6
359 359 359 359 359 359 359 359 359
204 204 204 204 204 204 204 204 204
155 155 155 155 155 155 155 155 155

Island Oil

6 7 8 9 10 11 12 13 14 15 16 17 18 19

Volume Revenue Costs Profit/Loss

 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Volume Revenue Costs Profit/Loss

ue, costs and profits and losses increased, however they remained stable with profit.
 11 12 13 14 15 16 17 18 19

6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000

359 359 359 359 359 359 359 359 359

- 48 - 48 - 48 - 48 - 48 - 48 - 48 - 48 - 48
311 311 311 311 311 311 311 311 311

- 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36 - 36
155 155 155 155 155 155 155 155 155

6 6 6 6 6 6 6 6 6
359 359 359 359 359 359 359 359 359
204 204 204 204 204 204 204 204 204
155 155 155 155 155 155 155 155 155

400
350
300
250
200
150
100
50
-
17 18 19 20
 200
150
100
50
-
17 18 19 20
 20

6.000

359
- 48
311

- 120
- 36
155

6
359
204
155
1. Describe the business model of an oil and gas company.
2. Think about the best tool for cost (choose one paradigm)
3. Describe a simple models for plan and control for 20 years (*xls file). Base for control: year by year, month b

Activity 3.2 (Team): Case of Meeting Isles - 0,5 MM barells/year, (Benchmarking price= 0,8 Brent), life cicle +0,
Charter: US$ 10 MM/month. - 2030 change order: 20%.
Operational Cost: US$ 3MM/month - 2025 change order 30%
Chemical products US$ 8,00/barrel; 2027 U$ 9,00/barrel.
Interest and discount rates; manpower, setup and disposal costs (no relevance).

Brent 74.72 59.776

brent rate 80%
Growth

initial change

MM Volume 0.5 y2 +0,5; y11 -0,2

Revenue
per barrel Variable Costs 8 9
Gross Margin

per month Fixed Costs (charter) 10 12

per month Operating Cost 3 4
Profit/Loss

Volume
Revenue
Costs
Profit/Loss

1
 4

-
1 2 3 4 5 6 7 8 9

Volume

Conclusion
It can be seen in the graph that with the increase in volume there was profit for a while, however when decre
rol: year by year, month by month.

e= 0,8 Brent), life cicle +0,5MM/year from 2022 until 2030; 2031 -0,2MM till 2040.

2021 2022 2023 2024 2025 2026 2027 2028 2029

1 2 3 4 5 6 7 8 9

0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

30 60 90 120 149 179 209 239 269

- 4 - 8 - 12 - 16 - 20 - 24 - 32 - 36 - 41
26 52 78 104 129 155 178 203 228

- 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 36 - 36 - 36 - 36 - 47 - 47 - 47 - 47 - 47
- 130 - 104 - 78 - 52 - 37 - 11 11 36 62

1 1 2 2 3 3 4 4 5
30 60 90 120 149 179 209 239 269
160 164 168 172 187 191 198 203 207
- 130 - 104 - 78 - 52 - 37 - 11 11 36 62

Island Oil
40

30

20

10

-10
 20

10

-10

-20
8 9 10 11 12 13 14 15 16 17 18 19 20

Volume Revenue Costs Profit/Loss

ile, however when decreasing the volume there is loss.

 2030 2031 2032 2033 2034 2035 2036 2037 2038
10 11 12 13 14 15 16 17 18

5.000 4.800 4.600 4.400 4.200 4.000 3.800 3.600 3.400

299 287 275 263 251 239 227 215 203

- 45 - 43 - 41 - 40 - 38 - 36 - 34 - 32 - 31
254 244 234 223 213 203 193 183 173

- 144 - 120 - 120 - 120 - 120 - 120 - 120 - 120 - 120

- 47 - 47 - 47 - 47 - 47 - 47 - 47 - 47 - 47
63 77 67 57 46 36 26 16 6

5 5 5 4 4 4 4 4 3
299 287 275 263 251 239 227 215 203
236 210 208 206 205 203 201 199 197
63 77 67 57 46 36 26 16 6

400

300

200

100

-100
 200

100

-100

-200
8 19 20
 2039 2040
19 20

3.200 3.000

191 179
- 29 - 27
162 152

- 120 - 120
- 47 - 47
- 4 - 14

3 3
191 179
196 194
- 4 - 14