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The problem of combining uncertain parameters is discussed and the effect is shown of UK and Norwegian tax, in very simple representation. 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The problem of combining uncertain parameters is discussed and the effect is shown of UK and Norwegian tax, in very simple representation. 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This paper develops a model of the decision to decommission an oil platform offshore the UK, using elementary options valuation It contrasts the choice of decommissioning date under expected or certain-equivalent value with the dates that would be optimal if options values for continuing production were developed with respect to uncertain prices, decommissioning costs, fixed […]
By: T. Roberts
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