Capitalization of Resources of Oil and Gas Fields

The article is devoted to the development of methodological approaches to the capitalization of resources of oil and gas fields in the subsoil. A new methodological approach to the capitalization of oil and gas resources has been developed that combines a differentiated accounting of investment characteristics, cash flow generation, their use and consideration of the influence of the time factor at various stages of the long life cycle of exploration and development of oil and gas fields. For this purpose, it has been proposed to divide the life cycle of oil and gas resources development into three periods the period of investment costs (exploration, drilling, field development), the payback period of investments and the main operational period. For each period, appropriate methods are provided for determining the influence of the time factor, taking into account natural and geological features, as well as the risks of investing and receiving cash flows during the development of oil and gas resources. Keywords—capitalization, cash flow generation, discount rate, oil and gas resources, time factor