Case Study

Bacia de Campos

10 pages
March 2010
Reference: IMD-1-0288

In August 2009, Petrobras announced a new oil discovery in carbonate reservoirs in the Bacia de Campos (Campos Basin). The discovery well was located nearly 120 km off the coast of Rio de Janeiro, at a depth of 1,000 meters. The discovery would be the object of an Assessment Plan, before exploration could begin.

Learning Objective

The task is to evaluate Petrobras’ proposed investment in the Bacia de Campos oil field. The model must project capital expenditures, operating costs, production volumes and subsequent decline rates, revenues, income taxes, working capital —all on an annual basis for a period of more than 30 years.

Keywords
Capital Market, Project Valuation, Emerging Market, Rating, Capital Expenditure
Settings
South America, Brazil
Petrobras, Materials, Oil and Gas
2009
Type
Published Sources
Copyright
© 2010
Available Languages
English
Related material
Teaching note
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