The oil and gas industry is governed by policies with the aim of smoothening the business relationship between the Government, the International Oil Companies (IOC’s) and the Host communities. Different oil producing countries have their own laws governing petroleum activities and these laws vary from country to country based on the B-PEST factors which are Biological, Political, Environmental, Social and Technology. However, reserve size and oil type can also influence petroleum laws. Countries like Nigeria relies strongly on petroleum bills such as the PIB in which this research will be analyzing the Production Sharing Contract (PSC) which is a significant subset of the PIB. Comparison between the existing PSC of Malaysia and that of Nigeria was captured in this research and the analysis of the PSC was done based on the Government Take, National Oil Company (NOC) and the Contractor’s benefits. 26.67% and 56.58% recovery cost, 28.67% and 26.28% Government revenue, 23.14% and 7.64% NOC share, 21.52% and 9.50% Contractor share of revenue per barrel was arrived at for Malaysia and Nigeria respectively, showing that the Malaysian PSC model yields more income to the country when compared to that of Nigeria without necessarily short-changing the contractors or the IOCs. Finally, the reasons behind these deficits were highlighted and recommendations made to improve the PSC and benefits for all parties to the contractual agreements.

In-situ Crude oil can be produced through several drive mechanisms of which the choice of specific drive mechanism is dependent on several key performance tools. This study examines the Alwyn North field and presents a comparative analysis for producing crude oil using water drive, gas drive and natural drive or depletion drive. The Eclipse Simulator was used to simulate different scenarios of well placement and performance tools such as FOPR, FPR, FWCT, FGOR and FOE was used during simulation to compare the outcomes of the well placement. Economic analysis which is key in decision making was carried out using economic tools such as Gross Profit Margin (GPM), Net Present Value (NPV), Payback Period, Internal Rate Return (IRR) and Profitability Index (PI). The payback period for water injection was 2.1years and 1.99years for gas injection. IRR was 53% and 48% for water and gas injection development schemes respectively and Profitability Index for water injection was 1.73 and 1.36 for gas injection. These economic tools helped to arrive at a conclusion of best drive mechanism for the production of the field.

In-situ Crude oil can be produced through several drive mechanisms of which the choice of specific drive mechanism is dependent on several key performance tools. This study examines the Alwyn North field and presents a comparative analysis for producing crude oil using water drive, gas drive and natural drive or depletion drive. The Eclipse Simulator was used to simulate different scenarios of well placement and performance tools such as FOPR, FPR, FWCT, FGOR and FOE was used during simulation to compare the outcomes of the well placement. Economic analysis which is key in decision making was carried out using economic tools such as Gross Profit Margin (GPM), Net Present Value (NPV), Payback Period, Internal Rate Return (IRR) and Profitability Index (PI). The payback period for water injection was 2.1years and 1.99years for gas injection. IRR was 53% and 48% for water and gas injection development schemes respectively and Profitability Index for water injection was 1.73 and 1.36 for gas injection. These economic tools helped to arrive at a conclusion of best drive mechanism for the production of the field.