| Energy demands for economics growth in this decade are amazing. Crude oil still dominates to fill world energy demand. Crude oil price fluctuate depend on supply and demand in the international markets. This is will impact to value of oil field it self. Once of method often to calculate value of oil field are Discounted Cash Flow. Medco Energi Global Pte. Ltd. has been success to implement by acquired several oil fields in many countries since establish in 2004, such as United States of America, Oman, Yemen, Tunisia, Cambodia and Libya. Each country has different method to calculate value of oil field. Which need to be question is how to determine value of oil field in Libya? Libya has own method called EPSA (Exploration & Production Sharing Agreement) to valuing of oil field. Discounted Cash Flow approach method can be use to determine valuing a project, company or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values. The discount rate generally the appropriate WACC (Weighted Average Cost of Capital) which is reflects in cash flow and risk in the future. The result of the analysis that oil field in Libya more precious better than today oil price USD60.00/bbl. Suggestion to management is to divest this profitable asset to have additional cash for operation and reduce risk in the future. Additional cash from divestment used for bidding other potential fields. |