Oil Development Project Financial Evaluation Methods Discussed

As one branch of technology economy evaluations, financial affairs evaluation is the nucleus of the feasibility research of an item. By financial affairs evaluation, the profiting ability and the foreign exchange balance of an item can be investigated. As a result, whether an item is of feasibility can be judged.The exploration & development of petroleum resources is an item with high investment and high risk, which characteristic is that a decision of investment or not often needs to be made before clearly understanding the complicated circumstances.In order to avoid or reduce the probable huge error in making decision and to maximize the profit of stockholders, economic evaluation must be conducted firstly. And financial affairs evaluation in a project seems more important after china joining in WTO and CNPC going on the stock market. Based on this background, the method is discussed of financial affairs evaluation in petroleum development items.With GangDong oilfield as case, a set of economic evaluation method and its procedure is proposed, of which the major contents are technology economy demarcation line research and economic evaluation of adjusted plans. And some points of concerned financial affairs are put forward in the end of this paper.