offshore e&p3.4 total ppt
TRANSCRIPT
OilSim – An overview of the Oil and Gas Upstream value chain
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Learning cycle
Challenge
Available data
Analysis
Decision
Review
Challenge 1 Finding basins
Challenge 2 ProspectingChallenge 3 Exploration DrillingChallenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Today’s Challenges
Additional knowledge/skills
Environmental issues Team work and negotiation Critical decision making, analytical
skills, multi-tasking Learn through experience Economically viable volumes-
reducing uncertainty Return on Investment Function appreciation
Money and Credibility
You start with $700 millionYou can apply for more money later.
Create valueMeasured by the net value of the oil and gas fields discovered MINUS all costs involved.
Correct answers and sensible decisions are awarded with CPs
Oil and Gas Value ChainComplete Value Chain
Upstream
Challenge 1 Finding basins
Challenge 2 ProspectingChallenge 3 Exploration DrillingChallenge 4 Drainage Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Today’s Challenges
Main screen
Map Columns e.g C1, and C54,
Row
s e
.g. R
35
and R
16
3,
Block
Blocks are divided into smaller cellse g. R1C1
First task
Challenge: Find three sedimentary basins in the area. Basins are sedimentary rocks in the deep subsurface where oil and gas has been generated.
Procedure: Buy and study magnetic and gravimetric surveys; and to submit the coordinates, column and row number for each basin centre.
Gravimetric surveys
Gravimetric surveys show the gravity in the sub-surface. Measured by airborne sensors.
Sedimentary rocks have lower densities than the surrounding crystalline rocks. Low gravitational pull means high probability of a basin below.
Basins have a lower gravitational pull. Crystalline rocks have higher
gravitational pull
Gravimetric surveys
Gravimetric survey:South-east quadrant
Magnetic surveys Magnetic surveys show similar
information as gravimetric surveys. The sedimentary rocks in the basins have a lower concentration of magnetic materials than the surrounding crystalline rocks.
Sedimentary basins are the areas with the lowest magnetic field.
Basins have low magnetic field Non-basins have high magnetic
fields.
Magnetic Surveys
Magnetic survey:North-west quadrant
Centre may not be the same
Example:Top basin on
both maps Calculate the
midpoint between the gravimetric and magnetic centres found
= C55 and R105
C50
R100
C60
R110
Finding the Midpoint
Enter decision
Centre Midpoint calculation
3 centres – one Centre midpoint for each basin
Example: C55, R105 Solve before deadline. All
submissions are evaluated after the deadline (and not before).
You may get 0-100 CPs. All three centres must be located to get full CPs.
Challenge 1 Finding basins
Challenge 2 ProspectingChallenge 3 Exploration DrillingChallenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Today’s Challenges
Task 1 solved
All teams have submitted their answers. Basin centres are located.
Message in Inbox. All teams have answers and CPs awarded.
Task 2 license round Sedimentary basins
may contain oil and gas The government has
decided to put the blocks around one of the basins on offer
Challenge: Identify the 3 most promising blocks and submit a bid to the Government for these licences
Source and migration
1. SOURCE ROCKwhere organic material is put under sufficient pressure
2. MIGRATION ROCKwhere hydrocarbons are driven through
3. CAP ROCKImpermeable rock that stops migration of hydrocarbons 4.
PROSPECT
Traps
(c) OLFAnticline trap
Fault trap
Stratigraphic trap
Salt dome trap
Geological “pockets”, that might contain hydrocarbons.
Red areasYou will not be awarded blocks that contain any red spotsBlue areasBlocks in area may be awarded
Spawning Grounds
Common Risk Segment
Layer 3 Eocene1500m below the seabed
Layer 2 Paleocene2500m below the seabed
Layer 1 Cretaceous3500m below the seabed
CRS. Common Risk Segment surveys tell you about the probability of a structure in the block/cell containing oil or gas
Surface
2D Seismic surveys
Traps can be found with seismic surveys
2D seismic survey is a cross section of the geological layers along either a column or a row
2D seismic surveys are used for locating prospects
2D Seismic in OilSim
Unprocessed Processed
Interpreted Red is top of the sealing rock
Green is top of the reservoir rock
Anticlinal traps
Leakage?
Leakage
Sealant rock
Order Seismic
What type of data do you want?
Columns or Rows
Unprocessed or processed data
Interpreted or notOnly buy maximum
of 4 blocks of data at a time to speed up processing
The yellow hatched area on map can be clicked on and dragged to blocks of interest
View the Seismic
Red circles – navigate through the 2D seismic
Yellow square – Row 1 from Column 1-56
Cross-sections
Column
Row
Prospect, ReservoirBasin,Source
Enter bids Three blocks Three amounts
Min: $1M Max: $30M
Awarded 1 block Pay for 1 block Highest bid wins If equal, then team with highest
CP wins
Recap on Task 2 Environmental Sensitive Areas map
to see which blocks to avoid Common Risk Segment surveys to
see which blocks to examine closer 2D surveys seismic to identify which
ones have the most (big) structures Check water depth, and go for
shallow water blocks if possible Remember to submit 3 bids
Challenge 1 Finding basins
Challenge 2 ProspectingChallenge 3 Exploration DrillingChallenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Today’s Challenges
Task 2 solved Message sent to
all teams with the results
Credibility Points are given for prosperity of the blocks you bid for
Every team has got one exploration license
Task 3 Exploration Drilling
HQ is happy with the license awarded.
Challenge: Farm-out minimum 20% from your license – and farm-in as much as you can in other good licenses.
Acquire 3D Seismic interpretations for the block you operate, and study the results from the licensing round
Get others to invest 20% or more in your license – you can show/send 3D seismic
Real 3D Seismic
Shows the subsurface structure in a cube.
3D Seismicin OilSim
Layer 1 Cretaceous
Layer 2 Paleocene
Layer 3 Eocene
Partnerships
Spread the risk: e.g Investing in other blocks divides the risks amongst all partners, much more preferable than keeping 100% of one field and all the risk.
Increase probability of profit: investment in only 1 field which could be a dry prospect is possible, whereas the likelihood of investing in 5 fields which are all dry is unlikely.
Licences
Farm-inEnter the percentage and total amount for have agreed to offer
Minimum $100,000 per %
Add a message to the seller
Press “Send offer”
Farm-in
When a team receives a Farm-In offer to appears under Financing. This is where a team can receive finance or money for a % of their own blocks
Farm-in license OWNER
decides whether to ACCEPT or REJECT the offer
Partnerships established every time a license owner accepts an offer.
Overview: On the main page, you can see all licenses. 1) licenses you operate, 2) licenses you have invested in, and
other licenses.
Farm-in
All your farm-in offers to other teams are shown under “Investing” on the right-hand side of the homepage . This is where a team offers investments to other teams for a % of their blocks
Partners pay a proportional share of all future costs
Partners receive a proportional share of the net proceeds from oil and gas
The operator team makes all decisions regarding drilling
Teams can farm-out up to 70% of licence
Operators must keep 30% of licence
Partnerships
Water depth
• Before choosing a rig, you need to check your water depth
Find this at the bottom of the BLOCK page
Choose Rig Choose the right rigs for your water
depths Jack-up rigs for shallow waters
Semi-submersible rigs for middle waters
Drillships for the deepest waters
Rig cost = drilling days * day rate
Service ProvidersUpto 9 Star
quality- Good:
normally costs more
Bad: cheaper, but reliability
is low, so you risk extra drilling time and extra costs
Environmental Impact Assessment
EIA survey: more knowledge about the area.
Less probability for drilling problems. Less severe consequences if you run
into problems.
= Which drilling locations to avoid.
Drill Position EIA:
enviromental impact analysis shows where it will cost you more to drill.
Place your mouse where to drill
Drilling Position
Layer 1 Cretaceous
Layer 2 Paleocene
Layer 3 Eocene
Drilling Days
Estimated cost
Oil spill or Gas Blowout control
Estimated cost
DrillingResult Volume
Range in MBOE counts
Test may increase Proven MBOE if oil or gas found
After testing
Reprocess Seismic
Value
Assumptions
Value calculation
Appraisal From Probable volume to proven
reserves
Narrowing ranges
Exploration well: 0 to 1572 MBOE (after drilling) 11 to 1266 MBOE (after testing)
First appraisal well: 25 to 1033 MBOE (after drilling) 34 to 910 MBOE (after testing)
Second appraisal well: 65 to 850 MBOE (after drilling) 101 to 752 MBOE (after testing)
Only proven MBOE counts
Drilling Summary After your first drill in each well,
reprocess seismic Decide which discoveries to drill how
many appraisal wells into
Ultimately, you should either: Get a positive net present value, Or a conclusion that additional
appraisal wells will not result in a net present value
Apply For More Funds Click on Apply for More Funds Tab. 1 KP for each $100,000 applied for. Answer the questions: All correct
gives cash and you can keep KPs. One wrong gives cash and you keep ½ of your KPs. Two wrong gives ½ cash and you lose all KPs. All wrong, you get no cash and lose all KPs.
Expensive money if less than 10 knowledge points: Apply for cash and be fined $5million for each $20million requested.
Challenge 1 Finding basins
Challenge 2 Prospecting
Challenge 3 Exploration Drilling
Challenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Challenge Make a well plan for
each reservoir in your block, choosing: Number of production
wells Tubing size
Aiming to choose a plan that
maximises value of block Increased sales value Decreased drilling costs
Where to find the surveys
Click the Surveys tab
Nodal analysis
Expected Production Profile
Nodal analysis
Highest well flow rate
Read the maximum well flow rate Most suitable Tube size
Most suitable tube
Expected Production Profile
Reservoir information
1. Click the Reservoir tab
2. Click the magnifyingglass for the reservoir
3. Study the data forthe reservoir
Production Wells
Click on Drilling Rig
Reservoir Information
Submit a well plan
Combined Plan
Improve value – revise well plan1. Submit plans with different number of wells
and tubing sizes1. Review Reservoir information after each
revised plan 2. Aiming to maximize sales value and
minimize drilling costs, whilst increasing Recovery Factor
3. You can amend your well plans until the deadline
4. Credibility points – upto 100 kp if plans are optimal for all your reservoirs
5. After deadline – Value of Licence will be adjusted based on final Well Plan submitted
Challenge 1 Finding basins
Challenge 2 Prospecting
Challenge 3 Exploration Drilling
Challenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Challenge Plan the facilities to
produce the oil and gas that has been found in the block
Maximize the value of the license block Maintain sales value Decrease facilities
costs Reduce risk
Metocean data Environmental surveys
Earthquake survey legend
Waveheights
Hurricanes
Choose platform type
Impact of discount rate Value Shown = income less
expenses Discount factors: 0%-20%
1 4 7 10 13 16 19 22 25 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1 4 7 10 13 16 19 22 25 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1 4 7 10 13 16 19 22 25 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0% 5% 20%
189M 118M 48M
Block Water depth
1. Click the Reservoir tab
2. Click the magnifyingglass for the reservoir
3. Average seabed depthvisible here
Detailed production profile Determine maximum production
volumes of values of oil, gas and water(In gas fields it is gas, condensate and
water)
Platform parameters
Transport volumes Estimated no. of barrels
can be transported per day Different flowline (riser) and pipeline sizes = Different no. of barrels
Flowline size : Multiphase fluid from seabed
to platform (acting as flowline and riser)
Pipeline size : Oil and condensate to
storage tanks Gas to processing plant
Transport connections
Connect pipelines to Gas terminal and an Oil terminal
Facility overview
Flow overview
Challenge 1 Finding basins
Challenge 2 Prospecting
Challenge 3 Exploration Drilling
Challenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Challenge Plan the construction of facilities
required to operate your platform Submit a financial summary of the
plan Execute construction plan Minimize capital expenses Amend construction plan as issues
occur Get to FIRST oil!
Activity hierarchy
Choose only 1 activity – where a Dotted line
Where a solid line exists, the task below the line must be completed before starting the task above the line
Vendor Resource analysis
Considerations: Reach First Oil
within 21 periods of 90 days – TOTAL 1890 days
Time V. Cost Local Content
Planning Summary
Construction execution
Activities in 1st period
Activity feedbackActivity completed
Activity delay – still ongoing
Issue with activity
Progress of activity
Period information
Timeline
Updated hierarchy
First Oil and bonuses
RecapPART A Activity Hierarchy Survey – study activity
dependencies Vendor report - compare providers/local
content Prepare construction plan Submit Planning Summary
PART B Execute Plan - as many activities as possible
within each period; provider for each activity Check Timeline chart to see progress Reassess/alter providers as issues occur
Challenge 1 Finding basins
Challenge 2 Prospecting
Challenge 3 Exploration Drilling
Challenge 4 Depletion Plan
Challenge 5 Facilities PlanChallenge 6 Construction ProjectChallenge 7 Operations
Operations
Operations
Strategy discussions Financial consequences of your
decision? Other major drivers of decision Did country strategy play a role? Above-ground risks? Changeable market conditions? Impact on commercial contracts? Operating agreements affected? Other information to consider?