Abstract:

There are two basic principles of economic evaluation of medium-long term exploration & development plan.One is to obey relevant rules and policies and to be in accordance with national macro-economic polices,and another is to give priority to benefits and to be favorable for sustainable development of enterprises.Economic evaluation includes specifically collecting basic data correlated with the plan and estimating investment,calculating various economic indicators in the exploration and development,calculating various dynamic and static indicators and analyzing the profitability of the project,as well as making risk analysis aimed at the characteristics of petroleum industry.Special attentions should be given to selection and optimization of some key parameters such as planned reserves,planned production and costs of oil and gas.Static medium-long term plan should be changed into dynamic and progressive plan through combining with annual plan.In the economic evaluation,limits of various technical and economic indicators should be defined rationally and dimension of investment should be controlled appropriately according to the existing technical conditions.

Key words: petroleum exploration and production, medium-long term plan, economic evaluation, darameters, indicators