feasibility studies of oil & gas upstream projects · facilities design / facilities capex...

Feasibility Studies of Oil & Gas Upstream Projects

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INGENIX GROUP - ABOUT US

5+ years / 120+ projects screened & evaluated

in oil&gas upstream in Russia

Prescreening of assets / Finding attractive targets

Detailed multi-scenario feasibility studies

CAPEX/OPEX evaluation using unique cost databases

Deep Analysis of Reserves / Development

Scenarios

2D/3D seismic and well data interpretation

Geological modeling. Reserves evaluation. Assessment of geological

risks

Reservoir development scenarios

Know-how in Project Evaluation / Cost

Engineering

Own software specially developed by Ingenix Group for

screening / feasibility studies incl. detailed cost evaluation

(Ingenix Cost Manager ®, Ingenix Cost Evaluator ®, Ingenix

Cost Viewer ®)

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OUR MULTIDISCIPLINARY TEAM

ECONOMICS DRILLING/ FACILITIES / OPERATIONS DEVELOPMENT GEOLOGY PETROPHYSICS SEISMICS

2D/3D seismic

data processing

supervision and

interpretation

Well survey data

interpretation

Geological

modeling /

Reserves

evaluation

Reservoir modeling

/ Development

scenarios

Well

construction /

Drilling and

well completion

cost evaluation

Facilities design /

Facilities CAPEX

evaluation

OPEX evaluation DCF-analysis (NPV

/ IRR / PBP, etc.) /

Sensitivity

analysis / Risk

analysis

• > 20 professionals

• With average experience in industry– 15 years

• 4 PhDs

Membership in Professional Societies Previous Employers

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Engaging one company instead of a pool of consultants helps you to match your

investment decision gates

ONE TEAM IS MORE EFFICIENT

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FEASIBILITY STUDY PF GREENFIELDS – THAT’S WHERE

TEAMWORK WINS

6 Initial data analysis is carried out in *sgy , las-formats; geological model analysis is done

in Petrel and Irap RMS

Expertise of Results of Structural and Dynamic Interpretation of Real Data

Allows you to confirm the accuracy or identify mistakes in picking of horizons, fault tracking, mapping, reservoir properties prediction Makes it possible to take into account new geological and geophysical data

Expertise of 3D Geological Models

Allows to confirm accuracy or identify

mistakes in modeling results Makes it possible to take into account new geological and geophysical data

«Live»

Data

Expertise of Results of Well Log Interpretation

Allows to confirm accuracy or identify

mistakes in interpretation results

Makes it possible to take into account new geological and petrophysical data, including data for analogue fields

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GEOSCIENCE SOLUTIONS – WE DO NOT RELY ON PDF REPORTS

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Expertize of structural and dynamic interpretation results on real data

«Live»

Data Ingenix

group 2011

Структурная карта по кровле продуктивного пласта

As a result of seismic cube analysis, incorrect positioning of 3D data in the process of re-

interpretation in 2011 was demonstrated. On the basis of incorrect structural interpretation later

was generated and approved an official reserve audit.

Structural map Structural map

GEOSCIENCE SOLUTIONS – WE DO NOT RELY ON PDF REPORTS (2)

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«Live»

Data

Expertize of well log interpretation data

Overestimation

pf Phi to oil-gas

contact

Additional shift of

related to depth

core

As a result of real data analysis, overestimation of weighted average Phi value was

shown. It happened due to incorrect selection of intervals with high porosity and core

location was shifted on purpose.

Existence of collector with Phi

more than 15% can not be proved

with core data

GEOSCIENCE SOLUTIONS – WE DO NOT RELY ON PDF REPORTS (3)

9 Express interpretation with use of Paradigm and ffA software

Changing

Focus

Regional information analysis

Reginal sedimentation data analysis

Use of analogue field data and statistics analysis of

filtration-capacitive properties, properties of fluids

and etc.

ЛУ

Modern technologies

Implementation of automatic classification for

seismic data, spectral decomposition + RGB

summation, different algorithms for coherency

estimation allows to develop alternative more

detailed geological models

Detection of inconsistencies in valuation parameters

used in reserves audit report with core reports and

well tests data

Detection fop errors in valuation parameters

connected with arithmetic, misspelling and etc.

Detection of errors and inconsistencies in reports

GEOSCIENCE SOLUTIONS – DETAILS ARE IMPORTANT

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Block В

Block А

6 открытых

месторождений

УВ

Changing

Focus

Analysis of regional information

As a result of regional geological data analysis (development history of the

region, tectonics, lithostratigraphical cut), conclusion on low probability of

new discoveries on Block B was made. And also on low probability of high

well production rates as on Block A.

Block B

Block А

GEOSCIENCE SOLUTIONS – REGIONAL DATA IS VALUE

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Changing

Focus

Modern technologies

As a result of express re-interpretation of 3D seismic data new alternative

tectonic model was developed, which later was used for reserve evaluation.

2009

2013

Ingenix Group

Spectral decomposition

RGB-summation

16-24-32 Hz

Spectral decomposition

RGB-summation

16-24-32 Hz

GEOSCIENCE SOLUTIONS – STATE-OF-THE-ART SERVICES

12 Reserves evaluation with soft-ware: Petrel (Schlumberger), Irap (Roxar), Isoline,

Crystal Ball

Independent

View

Depend on quality and quantity of input data

selection of proper method for reserves

evaluation

max

aver

min

Probabilistic and scenarios approaches

Multivariate evaluation of geological success rate

probability

Project rating according to risk

Identification of main geological risks and

recommendation for risk mitigation activities

Risk and contingencies valuation

Exploration Planning

Recommendation on further exploration

activities and methods of exploration in

accordance with modern approaches and

technologies

GEOSCIENCE SOLUTIONS – RISKS ARE UNDER CONTROL

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Exploration Planning

S 3D=900 км2

Exploration activities planning are based on license obligations and/ or Company

working plans with consideration of geological risks/ success and expenditures.

S 3D=550 км2

S 3D=250 км2

Independent

View

GEOSCIENCE SOLUTIONS – WE HELP TO PLAN EXPLORATION

WORKS

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Monthly production reports, flow tests, well history

Analysis of inputs allows to determine data validity,

uncertainties, estimate problems of development and

define key tasks of production increase

Индикаторная диаграмма. Пласт Д5-2

0

5

10

15

20

25

30

35

40

0 20 40 60 80 100 120 140

Дебит нефти т/сут

Деп

ресси

я, М

Па

Скв. 285 (инт. 4252-4260 м)

Скв. 299 (инт. 4292-4295 м)

Скв. 288 (инт. 4256-4262 м)

Скв. 300 (инт. 4357-4364 м)

Скв. 293 (инт. 4244-4253 м)

Кпрод=9,8 т/сут*МПа





Selection of analogues

Selection of analogues to define similar

development conditions, examine possible

scenarios, decline rates and identify border

conditions for parameters and uncertainties

Probabilistic estimate

Use of probabilistic approach based on statistics on

analogues fields to provide clarification of inputs:

uncertainties of porosity, viscosity, saturation

pressure etc.

«Живые»

данные

“Live” Data

Results of analysis: inputs clarification, development of structured database,

determination of uncertainties and probabilistic estimate of key uncertainties

RESERVOIR DEVELOPMENT - WE DO NOT RELY ON PDF REPORTS

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Selection of development target and scenarios

Selection of development target based on in-house

estimation taking into account various field

development technologies

Development scenarios are selected depending on

chosen criteria, development rates and border

conditions (minimal, optimal, maximal)

Variation and

Optimization

Selection and justification of development system

Development system planning, taking into account

probabilistic estimation of input parameters for

each scenario by means of 2D/3D simulators

Selection of development system is based on

feasibility studies

Optimization of estimated figures taking into

account new technologies

Description of risks to mitigate probable

negative impact

Optimization and risk assessment

Selection of development target is based on in-house estimation taking into account use

of new technologies. Field development scenarios are defined. For development targets

are calculated cost effective net oil pay, well spacing, initial flow etc. Forecasting of

performance indicators and optimization of scenarios. Risk assessment.

RESERVOIR DEVELOPMENT – THE BEST OPTION IS TO BE CHOSEN

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Selection of development target and development scenario

Вариативность

и оптимизация

Variation and

Optimization

Overlaid Contour Map

Geological profile


(2)

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Variation and

Optimization

Algorithm of development system selection

Calculation of development elements with use of 2D/ 3D simulators

Selection of a development system

1. Justification of development system

2. Justification of well profile

3. Justification of horizontal section

length

NPV (@12%), mln RUR

NPV (@12%), mln RUR


(3)

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Variation and

Optimization

Calculation of initial pay ratio

Selection and validation of a field development system


(4)

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Variation and

Optimization

Decline rates forecast (fluid and oil)

нефти

Selection and validation of a field development system

Oil decline rate

Decline rates are calculated by

means of 2D simulator (injection

wells work as producing for 9

months)


(5)

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Variation and

Optimization

Well production profile

Selection and validation of field development system


(6)

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Variation and

Optimization


Selection of optimum well spacing

Calculation of cost efficient oil net pays depending on development plan

Object U2-6. NPV depending on oil net pays and

probabilities (directional wells)

Object U2-3. NPV depending on oil net pays and

probabilities (horizontal wells)

RISKS ARE UNDER CONTROL

RESERVOIR DEVELOPMENT – RISKS ARE UNDER CONTROL

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Variation and

Optimization

Optimization based on cost efficient oil net pays


Risk assessment

Risk Description Activities on risk mitigation

Developme

nt risks

Initial flows are not confirmed.

Production profiles are not

confirmed.

Retesting of exploratory wells with

fracking, early drilling, well performance

with fracking, organization of pilot areas to

test petroleum recovery techniques.

Oil net pay, m

Case NPV, mln RUR

18 m oil net pay

RESERVOIR DEVELOPMENT – RISKS ARE UNDER CONTROL (2)

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“Live” Data

Review of existing infrastructure

Prospects of existing infrastructure use,

including energy supply, roads, pipelines,

pits etc.

Validation of transport scheme

Analysis of possible transportation

routes by all available means

Selection and validation of well pad distribution pattern

Variation of transportation routes, pipeline

connection points, estimation of amount and

objects construction time

DRILLING AND FACILITIES – ALL INPUT INFORMATION IS VERIFIED

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Variation and

Optimization

Justification of well design

Justification of well design based on data from

petroleum engineers

Estimate of well construction costs

Justification and process design

Hydraulic calculations of oil, gas and condensate

transportation systems, pipeline diameter and

wall thickness

Process design of processing and transportation

objects if necessary

Alternatives of field infrastructure development

Alternatives of field infrastructure development for

their economic efficiency evaluation

DRILLING AND FACILITIES – THE BEST OPTION IS TO BE CHOSEN

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Unique Software

Solutions

OPEX estimation

OPEX estimation with use of standard cost methods

(proprietary technology). Depending on project

technical parameters demand for personnel,

materials and services is calculated

CAPEX estimation

CAPEX estimation is based on technical and

economic modelling - cost is defined through

analogue objects with the most appropriate technical

parameters.

In-house Database

Multilevel database of more than 1800 typical oil & gas

objects (technical & cost parameters) in 18 regions of

Russia

Database is structured and provides information from

object to unit of equipment

Processes are automatized by means of own Ingenix Cost Manager software

CAPEX AND OPEX EVALUATION – DETAILED DOWN TO EQUIPMENT

UNITS

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Variation and

Optimization

Analysis of applicable tax benefits

Depending on geological parameters of fields

recommendations about applicable tax benefits

are provided (according to the latest changes

of the Tax Code of the Russian Federation)

Sensitivity analysis

Defining of sensibility towards main project

factors (capital expenditures, operational

expenditures, prices, production)

Identification of key project risks

Identification, description and evaluation of

risks having critical impact on the project

NPV EVALUATION – SENSITIVITY ANALYSIS FOR BETTER RESULT

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OUR ADVANTAGES

An integrated approach to services in oil & gas upstream allows

our clients to keep deadlines and reach efficiency targets

Our team has a profound experience in different fields of

expertise, having performed evaluation of 120+ oil&gas projects

in Russia and abroad

We try our best to use best practices and develop our own

know-how to provide our clients with the state-of-the-art

solutions

03.09.2018

Ingenix Group LLC

Ulitsa Bolshaya Tatarskaya, 9

Moscow, 115184, Russia

+7 (495) 783-00-09

www. ingenix-group.ru

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