Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
The petroleum industry is one of the fastest growing sectors in the world in terms of private participation and financing. The risk and uncertainty associated with the crude oil supply and product demand influence the overall economic viability of petroleum refinery projects. Issues associated with the security of a project’s cash flow are of primary concern to investors using project finance in the procurement of petroleum refineries. This article reviews the characteristics of petroleum refinery projects, the concept of project finance, and issues associated with its application, with emphasis on the investigation and appraisal of the arrangement of supply and off-take contracts in relation to risks and economic returns. A mechanism is developed to aid contractual arrangements of supply and off-take strategies in support of project finance transactions in the procurement of petroleum refineries. The mechanism is tested in a case study through computer simulation.
TOPICS: Statistical methods, simulations
- © 2011 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600