PETROLEUM INDUSTRY REFORM IN NIGERIA: SIMULATION ...

Modeling Reform Legislation Impact
on Deepwater Economics—DCF Approach
Where:
‣NCF t = After‐tax net cash flow in year t,
‣GRR t = Gross revenue in year t,
‣ROY t = Total royalty paid in year t,
‣CPX t = Total capital expenditures in year t,
‣OPX t = Total operating expenditures in year t,
‣BNS t = Bonus paid in year t,
‣PO/G t = Government profit oil in year t,
‣TAX t = Total taxes paid in year t,
‣OTH t = Other costs or taxes paid in year t.
OOILEDARE
USAEE 2010, Calgary, Canada
12