Calculation of Base Yield Rate for Economic Evaluation of Petroleum Exploration and Production Projects

Base yield is one of the major basis for investor to make a decision on an investment opportunity and is the minimum expectation of investors to an investment project Determination of base yield rate is very important but very difficult Two calculation methods, namely bank loan interest rate method and weight averaged cost method, are introduced in this paper for base yield rate of petroleum exploration and production projects. The influent factors of base yield rate and their determination are also discussed.