CONFIDENTIAL September 2022/ BBA 6363

Assignment 2

Target Economic Region

Code: BBA 6363

Lecturer: Dr. Yasmin Jamadar

Submission date: 28/11/2022

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Answer all the questions below:

Question 1: Define ‘Petroleum Economics’.

Question 2: What is Cash Flow analysis?

Question 3: What is the WACC for Petronas with 50% debt and 50% equity that pays 12% on its
debt and 20% on its equity.

Question 4:

Teledyne Oil & Gas Malaysia Puncak Oil & Gas Sdn. Bhd.

Investment (CF0)= 165,000 Investment (CF0)= 166,000

NCF1= 63,120 NCF1= 45,190

NCF2= 70,800 NCF2= 50,500

NCF3= 91,080 NCF3= 97,000

Required return for assets of this risk level is Required return for assets of this risk level is
12%. 14%.

NPV= 12,627.41 NPV= 9,500.12

Required: Which you should invest and why?

Question 5: International oil and gas projects feature high capital-intensity, high risks and contract
diversity. Therefore, in order to help decision makers make more reasonable decisions under
uncertainty, it is necessary to measure the risks of international oil and gas projects.

What are the risks and uncertainties involved in a project and how you analyze these risks?

Requirement: Prepare a power point

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