Valuation of an oil processing facility

The development of Canada’s energy infrastructure requires significant investment at all

levels. Energy companies considering such investments require a complete understanding of

the projected value of the prospective asset, as well as the associated risks. Often, a

significant portion of the value comes from the flexibility provided by the asset. This project

will use option pricing techniques to value transportation assets for crude oil in Western

Canada. In this case, the flexibility consists of the ability to market the oil to different locations

around the world. The model developed in this project will allow Nexen to assess the value of

this optionality under different market conditions.

Faculty Supervisor:

Tony Ware

Student:

Partner:

CNOOC Petroleum North America ULC

Discipline:

Mathematics

Sector:

Mining

University:

University of Calgary

Program:

Accelerate

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