2015ARKH-P5-Field Development Evaluation(80s)

Petroleum Field Evaluation Process

Introduction to Economic Analysis

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Petroleum Field Evaluation Process Introduction to Economic Analysisacts

Sensitivity and scenarios analysis

The sensitivity factors considered are often project specifics. In the oil business the most commonly used are – Capex, Reserves, Opex, Oil price, Taxes.

The Opex impact on economics is often relatively limited

The impact of the installations removal (decommissioning) at the end of the field life is also limited

The impact of the schedule delays is very often underestimated.

Tuesday, 15 September 2015

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PROJECT MANAGEMENT

DEVELOPMENT STUDY PHASES

Environmental Baseline Survey –E.B.S.

uIn order to know precisely what is the situation before implementation of the Project, it is required spending time and money to collect all environmental data.

u Existing pollution can be identified so that the Project will not be charged with it.

uExisting fauna, flora will be listed and solution to minimize the Project Impact can be initiated.

u When habitation and/or social life are already in place, it is the time to do the full inventory. u EBS can be organised and awarded as soon as the Site area is identified.

uEBS can be organised over a few months, start during the conceptual study and be completed during the preproject

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Biodiversity

CREOCEAN-SERT, 2006

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PROJECT MANAGEMENT

DEVELOPMENT STUDY PHASES

Operating Philosophy

Purpose of the Operating Philosophy

The Operating Philosophy is a document prepared during the Conceptual and Pre project phases which, for a given project,

uestablishes the COMPANY Surface Operations principles to ensure a safe, efficient and cost effective operation,

u explains the way in which the Surface Operations will be organised and carried out

uidentifies issues impacting on the installation design and requiring particular studies or definition during the engineering phases,

uis a reference document at any phase of the field development in all matters dealing with operations.

u Is part of the hand over dossier to the Operator.

uis a self-supporting document involving only necessary information. No specific details in other disciplines, such as Safety and Process

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PROJECT SANCTION or DECISION TO DEVELOP

The timing for the Decision depends of the development characteristics (oil, gas,

LNG unit ….) and the terms of the Petroleum Contract

It occurs generally after completion of the preproject study but very often the final decision to invest is postponed at the end of the Basic Engineering or FEED

(Front End Engineering Design ) for large projects

In addition a detailed risk evaluation (political, reservoir, technology

,economics,…..) is performed to back up the Decision to develop..

It can be a long and complex process as it requires operator and partners companies management and authorities approval.

Even for small projects this decision is always formalized

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PROJECT SANCTION :

KEY CHALLENGES : HSE – HEALTH SAFETY & ENVIRONMENT

Technological risks :

Generated by toxic, flammable, explosive substances

Risks concerning individuals, environment, integrity of installations and production

Occupational risks :

Injuries or fatalities caused by the hazards in the workplace and the nature of the work

EBS & EIA

Environmental Baseline Study (EBS)

Environmental Impact Assessment (EIA)

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