DATE
January 2017
Deepwater Exploration & Development Planning
Supporting a major Latin American national-oil company in maximizing the value of deep-water hydrocarbon resources
Challenge
The challenge was twofold:
- develop an understanding of the key challenges and risks that the client will face in the exploration and development phases of a critical project.
- develop a model to estimate risked reserves of potential development clusters, and to demonstrate potential value creation through business cases for different resource scenarios.
Approach
- Firstly, we analyzed key drivers for the area to be considered in conceptualization of development options.
- Secondly, we developed a probabilistic Monte Carlo model to quantify scenarios of recoverable resources, based on geological knowledge and benchmarked analogous GOM deep-water projects, for cost, technology and infrastructure insight.
- After this, we developed an economic model to forecast development of the area, including production profiles, CAPEX & OPEX, revenues, taxes, and royalties. Finally, we presented these findings, with a project roadmap and execution plan, to top management within the client organization.
Value
- The client gained valuable knowledge of the challenges, risks, and options for development of the Perdido Deepwater Area.
- Furnished with the probabilistic model that we developed, the client can now target the highest-potential drilling opportunities based on acquired knowledge, inputting new data as geological knowledge increases.
Deepwater Exploration & Development Planning
Supporting a major Latin American national-oil company in maximizing the value of deep-water hydrocarbon resources
DATE
January 2017
Challenge
The challenge was twofold:
- develop an understanding of the key challenges and risks that the client will face in the exploration and development phases of a critical project.
- develop a model to estimate risked reserves of potential development clusters, and to demonstrate potential value creation through business cases for different resource scenarios.
Approach
- Firstly, we analyzed key drivers for the area to be considered in conceptualization of development options.
- Secondly, we developed a probabilistic Monte Carlo model to quantify scenarios of recoverable resources, based on geological knowledge and benchmarked analogous GOM deep-water projects, for cost, technology and infrastructure insight.
- After this, we developed an economic model to forecast development of the area, including production profiles, CAPEX & OPEX, revenues, taxes, and royalties. Finally, we presented these findings, with a project roadmap and execution plan, to top management within the client organization.
Value
- The client gained valuable knowledge of the challenges, risks, and options for development of the Perdido Deepwater Area.
- Furnished with the probabilistic model that we developed, the client can now target the highest-potential drilling opportunities based on acquired knowledge, inputting new data as geological knowledge increases.