Is a new oil field worth developing?
New to this industry?Start with its one-minute summary: Oil and gas
The prompt
Dunewell Petroleum (a fictional company) can develop an onshore field with 100 million recoverable barrels. Development capex is USD 1,200 million. Lifting cost is USD 9 per barrel and transport is USD 3 per barrel. The government takes a royalty of 20 percent of the oil price. The field would produce 10 million barrels a year. What is the full-cycle breakeven oil price, and what is the yearly cash margin at USD 70 per barrel? Ignore income tax and the timing of cash for now.
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
My notes on this case
0 of 5,000 characters. Saves automatically.