Oil & Gas Geology ›› 2022, Vol. 43 ›› Issue (6): 1489-1496.doi: 10.11743/ogg20220617

• Methods and Technologies • Previous Articles     Next Articles

Valuation methods of mineral rights of blocks with diverse exploration maturity

Chaoying Liu1,2(), Jun Li2, Baohua Wang1, Linjie Zhao1   

  1. 1.Wuxi Branch, Petroleum Exploration and Production Research Institute, SINOPEC, Wuxi, Jiangsu 214126, China
    2.Petroleum Exploration and Production Research Institute, SINOPEC, Beijing 102206, China
  • Received:2022-05-25 Revised:2022-09-13 Online:2022-11-21 Published:2022-11-21

Abstract:

As the reform of China’s oil and gas management system and mechanism gets deepening, the competitive transfer of oil and gas mineral rights has been promoted in an all-round manner. The transfer of exploration blocks has changed from the original ‘application first followed by registration according to law’ to the open competitive transfer of ‘bidding, auction and listing’. The acquisition of mineral rights is facing challenges such as fierce competition and difficulty in block evaluation and selection. How to seize the opportunity to valuate oil and gas blocks in a quick and effective manner, has become a hot topic among major oil companies that want to take the initiative in the process of mineral rights bidding. The study systematically reviews the current estimation methods of block value both at home and abroad, analyzes the applicable conditions and advantages and disadvantages of different methods, and puts forward the valuation methods suitable for blocks with diverse exploration maturity. In application, the newly-proposed methods are comparatively proved with the original ones. The results are of technical support to oil and gas mineral rights bidding across the world.

Key words: expected monetary value method, reserve value analogy method, comparable transaction price method, block value, block assessment, mineral rights bidding

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