Calculate net present value, IRR, and payback period for oil and gas field development. Interactive cashflow visualization with instant economic metrics.
Net Present Value (NPV) is the cornerstone of field development economics, representing the present value of all future cashflows discounted at the project's cost of capital. This calculator uses industry-standard exponential decline curves and discounted cashflow analysis to evaluate project viability.
Production Decline:
Q(t) = Q0 × (1 - D)t
Where:
Q(t) = Production rate in year t
Q0 = Initial production rate
D = Annual decline rate (fraction)
t = Time in years
Net Present Value:
NPV = Σ [CFt / (1 + r)t]
Where:
CFt = Net cashflow in year t
r = Discount rate (fraction)
t = Year number (0 to N)
NPV positive indicates viable project
Revenue Calculation:
Rt = Q(t) × Pt × 365 × (1 - Royalty)
Where:
Rt = Revenue in year t
Pt = Oil price in year t
Royalty = Government royalty rate
Internal Rate of Return:
NPV = 0 when r = IRR
IRR is the discount rate at which NPV equals zero.
Calculated numerically using bisection method.
IRR > discount rate indicates viable project.
Our field development analysis includes reservoir simulation integration, probabilistic economics, multi-phase development planning, and automated BSEE data integration.
Discuss Your Project View BSEE Economics Case Study