Beruflich Dokumente
Kultur Dokumente
BUSINESS
OIL BUSINESS
Ground Rules
Each company (comprising of max four participants) will
be awarded $2 billion at the start of the game.
Your main goal is to generate maximum profit from your
investments which will be evaluated at the end of
25 years.
A separate banking facility will be provided, from which
loans can be sanctioned any time with a 5% p.a.
simple interest.
The decision of the organizing committee will be final
and binding. No arguments to the contrary would be
accepted.
OIL BUSINESS
OIL BUSINESS
English Bidding
Type of forward auction, in which usually a single
item is offered for sale. Bidding starts with a low
price, and is raised incrementally as
progressively higher bids are solicited, until
either the auction is closed or no higher bids are
received. Often the seller sets a reserve price
below which the item is not sold and the auction
is aborted.
OIL BUSINESS
Land Blocks
Block
A
B
C
D
E
Remarks
Offshore Medium
Medium
Light
Condensate
Heavy
OIL BUSINESS
Area (Acres)
8000
6000
10000
13000
16000
OIL BUSINESS
Drilling Technologies
The amount of oil that one can recover will depend upon
the efficiency of the well design and completion strategy.
We shall provide you with a set of drilling and completion
technologies for which you must submit sealed bids.
You will be allowed to bid only for two technologies.
A particular technology will be awarded to the team which
bid the highest and the subsequent two highest bidders.
If however, a team manages to bid successfully for two
technologies, you shall be awarded the technology for
which you bid higher. The increment in the bid should
be in multiples of $ 0.5 million.
OIL BUSINESS
Recovery Factor
14
12
11
10
8
OIL BUSINESS
Minimum Bid
Amount ($ million)
7
6
5
3
2
Manpower
The amount of crude you recover will also
depend on the quality of manpower you have!
Hence, heres the chance to further enhance
your reserves by choosing the best set of
employees.
This, however, will be a Dutch auction.
OIL BUSINESS
Dutch Bidding
It is a type of forward auction, in which a
seller of a large block of items seeks bids
within a specified price range for the whole
block. The auction begins with a high starting
price which is progressively lowered until the
seller finds an acceptable bid. The last
manpower unit will cost 1.1 times the
average price of the first four manpower
units.
OIL BUSINESS
Manpower Available
Manpower
M1
M2
M3
M4
M5
Recovery Factor
10
7
6
4
3
OIL BUSINESS
Minimum bid
amount ($ million)
6
5
4.5
4
3.5
Drill wells!
The volume of oil recoverable will also depend on
the number of wells you drill. Hence decide how
many wells you want to drill taking into account:
The drainage area per well
Recovery of oil per well per year.
OIL BUSINESS
Block
A
B
C
D
E
OIL BUSINESS
OIL BUSINESS
OIL BUSINESS
Production
Now the wells will be produced for 15 years.
You shall have to bear the cost of production
for this period according to the table given.
OIL BUSINESS
Production costs
Block
A
B
C
D
E
OIL BUSINESS
OIL BUSINESS
OIL BUSINESS
Refinery
R1
R2
24500
600
R3
21000
500
R4
30000
750
R5
45000
1000
OIL BUSINESS
OIL BUSINESS
R1
100
2600
530
1100
1200
R2
1100
1300
1250
200
1300
R3
1900
800
1700
1400
1200
OIL BUSINESS
R4
1500
1900
1000
1900
350
R5
800
2800
300
1900
950
OIL BUSINESS
Cost( $/barrel/km )
0.01
0.025
OIL BUSINESS
12.64
48.98
20.54
28.44
11.06
109.02
11.06
45.82
17.338
25.28
15.8
127.98
17.38
55.3
20.54
26.86
9.48
85.32
26.86
66.36
17.38
23.7
7.9
47.4
4.74
39.5
15.8
23.7
18.96
165.9
OIL BUSINESS
City
R1
R2
R3
R4
R5
Mumbai
Visakhapatnam
Kolkata
Delhi
Ahmedabad
OIL BUSINESS
Demand/day (lt/day)
Market
Delhi
Mumbai
Kolkata
Vizag
Gas
16000
11500
8300
7700
Ahmedabad 8000
Petroleum Kerosene
28200
15500
29800
17000
31800
15750
25500
16000
26000
13000
Diesel
16300
16500
17800
13000
14000
OIL BUSINESS
Lubricant Coke(kg)
23000
175500
21200
197500
20500
210000
28500
220000
21700
167770
Sales
To ensure proper sales, you need to setup a proper sales
infrastructure. These are defined by two parameters:
Supply of component per pump station
Cost of setting up each station
So decide how much you want to sell and thus, decide your
investments. If you have a surplus of supply of a particular
petroleum by product, you can sell it to another team.
You can choose the amount of the byproduct you want
to sell, but its selling price is fixed according to slide 36 .
You will be given a 10 minutes window.
OIL BUSINESS
Delhi
Mumbai
Kolkata
Vizag
Gas(lt)
160
115
82
77
Ahmedabad
80
Petroleum Kerosene
Lubricant
(lt)
(lt)
Diesel (lt)
(lt)
282
155
192.5
230
298
170
191
212
318
157
181
205
255
160
222.5
285
260
130
173.5
OIL BUSINESS
217
Coke(kg)
176
200
210
220
170
Gas
1
0.8
0.7
0.5
Ahmedabad
0.2
1.2
0.5
0.85
OIL BUSINESS
2.2
Coke
0.2
0.3
0.4
0.5
0.1
Sales
Now after all the hard slogging comes the
good times! Its time to earn your profits. The
prices have been set and your earnings are
over a period of 10 years.
OIL BUSINESS
Selling price
Price ($)
Gas(lt)
2
OIL BUSINESS
Price ($)
Gas(lt)
1.5
inter-team sales
OIL BUSINESS