Risk Analysis of Offshore Oil Development Projects: A Case Study
Author(s) -
Bruno Nogueira Silva,
Leonardo Lima Gomes,
Rodrigo Loureiro Medeiros
Publication year - 2006
Publication title -
brazilian business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.176
H-Index - 4
ISSN - 1808-2386
DOI - 10.15728/bbr.2006.3.2.6
Subject(s) - risk analysis (engineering) , submarine pipeline , work (physics) , business , quantitative analysis (chemistry) , capital (architecture) , carry (investment) , offshore oil and gas , computer science , environmental planning , environmental resource management , environmental science , engineering , finance , mechanical engineering , chemistry , geotechnical engineering , archaeology , chromatography , history
Development of offshore oil production projects entails a huge capital outlay. The various aspects of the project are filled with uncertainties. If these are not considered correctly, an initially attractive venture can become uneconomic. It is thus necessary to carry out analyses that can identify and quantify the inherent risks of the project so that they can be mitigated as much as possible. This work presents a method of quantitative risk analysis that can serve as a basis for decisions regarding projects of this nature. We use a case study to exemplify the proposed risk analysis methodology.
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