An oil and gas production field in the Gulf of Thailand is open for international oil and gas companies to explore, develop and produce oil and gas resources through a long- term production sharing contract. A multinational oil major is keen to tender for the oil field and an investment team has been set up to evaluate the feasibility of making a long-term investment to acquire and develop the block. You are a member of the investment team and have been assigned to prepare the risk and financial analysis for the proposed investment.

 Required:

(a) Identify three major risks inherent in the oil and gas project which could impact the investment return.