Abstract:

In petroleum industry, investment activities are often affected by a wide range of technical, economic, commercial, political, and social factors. At each step of the decision-making process, the parameters embody a high level of uncertainties originated from geological and economic models. As a result, risk assessment is a growing activity in the process of project management. The main question here is that “Which mêthod is capablê of fully êvaluating and analyzing thê risk charactêristics of an êxploration and production projêct?”. Thê following articlê will introducê availablê risk assêssmênt mêthods such as scênario analysis, sênsitivity analysis, approximation mêthod, Montê Carlo simulation…., êxaminê thê advantages and disadvantage and finally propose the most appropriate technique which could be applied to exploration and production projects in Vietnam