ADVERTISEMENT

Reframing Exploration Strategy Optimizes Project Value

The conventional approach to project-exploration strategic planning at the identification or access stage is focused usually on the confirmation of the presence of hydrocarbons and the reduction of uncertainty. At the end of the appraisal stage, the main purpose is to create a successful business case. However, a focus on the economic value of the entire project at the identification stage may lead to optimal exploration programs and increasing project expected monetary value (EMV). The objective of this case study is to describe a specific approach to establishing an exploration strategy at the initial stage on the basis of not only uncertainty reduction, but also early business-case development and maximization of future economic value.

Project Framing on the Basis of Geological Options and Uncertainties

The Pannonian basin, part of the Alpine orogenic system, is the largest Neogene basin in the intra-Carpathian area, surrounded by the Alpine, Carpathian, and Dinaric thrust belts and characterized by anomalous high-heat-flow values. Continental collision and shortening recorded in these thrust belts and the Pannonian basin extension with associated magmatic events were reported to be the main drivers of basin development. The Pannonian basin is an aggregation of extensional and transtensional Neogene depressions separated by coeval uplifts.

The basin is fed by three main sedimentary sources: the Eastern Carpathians in the north and the Apuseni Mountains and Southern Carpathians in the east. The main sediment transport direction is northeast/southwest, but small-scale deltas prograde westward locally, sourced by the Apuseni Mountains and the South Carpathians. These differently oriented deltas merged in the Tomnatec depression.

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 187143, “Maximization of Major Oil and Gas Project Value at Identification/Access Stage by Reframing of Exploration Strategy,” by V. Orlov, R. Oshmarin, A. Bochkov, SPE, and Y. Masalkin, Gazprom Neft, and S. Yakovlev, V. Ulyanov, and M. Danilin, NIS, prepared for the 2017 SPE Annual Technical Conference and Exhibition, San Antonio, Texas, USA, 9–11 October. The paper has not been peer reviewed.
...
This article is reserved for SPE members and JPT subscribers.
If you would like to continue reading,
please Sign In, JOIN SPE or Subscribe to JPT

Reframing Exploration Strategy Optimizes Project Value

01 December 2018

Volume: 70 | Issue: 12

No editorial available

ADVERTISEMENT


STAY CONNECTED

Don't miss out on the latest technology delivered to your email weekly.  Sign up for the JPT newsletter.  If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.

 

ADVERTISEMENT

No editorial available

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT