>> Which means the project probably never got even halfway toward breaking even.
They probably didn't pay off much (any?) of the $300 million.
'BP to mothball Badami' (June 22, 2003)
http://www.petroleumnews.com/
pna...638153503.shtml
The company said at $24.72 per barrel oil -- the "average oil destination value" in 2002 -- its estimated annual cash loss would exceed $1.6 million.
...
When Badami was initially brought on-line in September 1997, it was expected to hold 120 million barrels of recoverable reserves and produce 35,000 bpd.
'Badami pipeline shutdown approved' (Aug 10, 2003)
http://www.petroleumnews.com/
pna...232460769.shtml
>>They probably didn't pay off much (any?) of the $300 million.
Probably less than a quarter of it. They produced a little more than 4,000,000 barrels, but prices were very low back then. Especially in 1998.
http://www.eia.doe.gov/pub/oil_g...xt/
tables21.txt
>>When Badami was initially brought on-line in September 1997
Strange, the same news source shows them starting production in August 1998.
http://www.petroleumnews.com/new.../
949986957.html
>> Probably less than a quarter of it.
1/4 would require $75 million in profits, or an average of almost $19 in profit for each of the 4 million barrels produced. BP said 1,350 barrels per day (bpd) at $24.72 per barrel meant the estimated annual cash loss would exceed $1.6 million. That's a daily loss of $4,384 -- or a loss of $3.25 on each barrel.
4 million barrels over 5 years averages only about 2,200 bpd. If prices were low when production peaked "very briefly" at 18,000 bpd, BP wouldn't have made much profit then either.
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