This paper shows how a new approach to small fields could unlock more than twice the net present value (NPV) of larger conventional fields in Southeast Asia at a similar level of capital expenditure (CAPEX). Capturing this value, though, will require a fundamental change in the operating models of operators in the region. The small-field approach focuses on margin maximization instead of recovery and productivity maximization.
Introduction
Southeast Asia has attracted sizeable foreign interest in recent years after weathering the global financial crisis while establishing strong manufacturing bases, expanding domestic infrastructure, and stabilizing financial markets. These developments fueled economies and continued to push energy demand higher.
However, Southeast Asia is facing its own challenges. Oil and gas companies in the region have been tasked with meeting domestic demand through local petroleum resources since the 1990s.