Optimal Extraction Path in a Oil and Gas Broun Field Under the Buyback Contractual Framework (Case Study on the Iranian Oil Field in the Persian Gulf)

The subject of this article is determining the oil optimal production path in one of the Iranian oil and gas brown field in Persian gulf, while the development of the field performed under the buyback contractual framework. In this research we have optimized a dynamic equation using numerically Bellman equation in Matlab program .We have considered different and possible oil price projections and discount rate scenarios. We have compared the differences between optimal production path and actual (and contractual) profiles. The results show that optimal production path is different from operator actual profile in both high and low discount rate (respectively 20% and 1%). Although contractual production profile and optimal production path for alternative discount rate is harmonization, However, Production profile bids by contractor matching with the calculated optimum production model in option of a high discount rate, in the early period, is Verified the expected behavior of international oil companies. But its incompatibility with actual performance the field indicates a incompatibility between the production plan bids by the contractor with the field real possibilities.