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In an oilfield was installed a gas lift system to increase its oil production in 10,000 bopd (3,650,000 bbl/year) during ten years. The total cost
In an oilfield was installed a gas lift system to increase its oil production in 10,000 bopd (3,650,000 bbl/year) during ten years. The total cost of the gas lift system summed an amount of 20 million dollars. Assuming a net revenue of $ 10 per barrel, estimate the present value for a project life of 10 years. Use an interest rate of 9% per year. Do not consider production decline. Was the project economically attractive? What would be the project minimum net revenue per barrel value to be considered acceptable?
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