Impacts of Economic Factors on SEC Net Reserves Under PSC Contract: A Case Study of an Overseas Gas Field A

Oil and gas reserves is the material basis for the sustainable development of oil companies. It is a core chain that goes through the complete business courses including oil and gas resources discovery, exploration evaluation, development and production, sale, and transaction. In that way, it becomes the key assets of oil companies and serves as a wind vane for oil companies. The reserves required by SEC to disclose is net reserves, which not only relates to technical factors such as oil and gas reservoir conditions and engineering levels but also depends on economic factors such as fiscal taxation provisions in the contract, oil and gas price, investment costs etc. This article studies economic factors influencing SEC net reserves of an overseas Gas Field A in the context of production sharing contract (PSC), in order to help oil companies efficiently manage oil and gas assets and reach KPI, so that management decisions will always keep on the best way to increase reserve assets and enhance companies’ development. In the meantime, this study may serve as a reference for the management group and engineers to make decisions.