QUESTION 3 (25 Marks) CLO CLO3 (a) (b) Marks 5 10 (c) 10 An oil company operates in Malaysia is a contractor to PETRONAS for a shallow water oil field. Parts of the production profiles from the field are given in Table 1. + 22 Table 1: Production profiles for an oil field Year Parameters 1 2 3 5 6 Production, 22 28 28 KSTB/day Development 30 250 300 150 costs, USD Mil. Production operating costs, 50 50 50 50 USD Mil. Oil prices, 70 70 70 70 USD/bbl 70 Based on the Malaysia 1985 Production Sharing Contract (PSC), determine the yearly crude oil entitlements (in USD) for the (5 Marks) (a) Goverment 6) PETRONAS (10 Marks) Contractor (10 Marks)