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Valuation of a Crude Oil Refinery in Brazil Under a Real Options Approach

  • Carolina de Castro LopesEmail author
  • Frances Fischberg Blank
  • Davi Michel Valladão
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

Oil refineries are complex projects subject to uncertainties. Given that Brazil is an oil product importer, this work provides an investment analysis of a refinery considering managerial flexibilities. Crack spread and exchange rate are modeled as stochastic processes and the deferral and shutdown options are evaluated.

Keywords

Oil refineries Crack spread Real options 

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Carolina de Castro Lopes
    • 1
    Email author
  • Frances Fischberg Blank
    • 1
  • Davi Michel Valladão
    • 1
  1. 1.Industrial Engineering DepartmentPontifical Catholic University of Rio de JaneiroRio de JaneiroBrazil

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