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Onshore 3.4 template presentation

Onshore 3.4 template presentation






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    Onshore 3.4 template presentation Onshore 3.4 template presentation Presentation Transcript

    • Introduction to Onshore Exploration
    • Your Challenge Today
      You are an exploration team in charge of a new petroleum exploration area.
      Your task is to find and drill for new reserves and to maximize return on investment (ROI).
      You will need to work as a company as well as in partnership with others.
      You will show your new understanding of exploration and be rewarded through credibility Points.
    • Finances
      You will start with $50 millionYou can apply for more later.
      Creating ValueProfit is measured by the net value of the oil and gas fields discovered MINUS all costs involved.
      Winning team has highest ROIROI is calculated as Value created DIVIDED by Funds received.
    • Credibility Points
      You get CPs for doing wellduring the simulationCorrect answers and sensibledecisions are awarded with CPs
      CPs are a measure of ability and credibilityA team’s CPs are considered when bidding for blocks and applying for funds from the HQ
    • You will learn
      Where and how to find hydrocarbons. Various surveys during exploration.
      Licensing rounds. Farm-in and Partnerships.
      Drilling rigs and Sub-contractors.
      Environmental issues.
      Economically viable volumes. Reducing uncertainty.
      Team work and negotiation. Critical decision making, analytical skills. Multi-tasking.
    • Oil and Gas Industry Value Chain
    • Login
    • Main screen
    • Map
      Columns e.g C1, and C54
      Rows e.g. R35 and R163
      Blocks are divided into smaller cells
      e g. C57,R73
    • First challenge
      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 gravity means high probability of a basin below.
      Low gravity are basins.
      High gravity are crystalline rocks
    • Surveys in OilSim
    • Real gravimetric survey
    • Survey in Oilsim
      Gravimetric survey:South-east quadrant
    • Survey in OilSim
      All four quadrant surveys in map context.
    • 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.
    • Real magnetic survey
    • Survey in OilSim
      Magnetic survey:North-west quadrant
    • Survey in OilSim
      All four quadrant surveys in map context.
    • Gravimetric survey analysis
      Locate edges of the continous basin structure (yellow area)
      Locate the diagonals and thus basin centre
    • Magnetic survey analysis
      Locate edges of the continous basin structure (purple area)
      Locate the diagonals and thus basin centre
    • Finding the Midpoint
    • Centre may not be the same
      Top basin on both maps
      Calculate the midpoint between the gravimetric and magnetic centres found
      = C55 and R105
    • 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 credibility points.
    • Solve task 1
    • Task 1 solved
      All teams have submitted their answers. Basin centres are located.
      Message in Inbox. All teams have answers and CPs awarded.
    • Challenge 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 offer an amount for each of them.
    • Challenge 2 : license round
      Any restrictions involved? Yes, you need to watch for Environmentally Sensitive Areas.
      What are we looking for? Hydrocarbon Prospects.
      Where do we find prospects? In sedimentary basins
      How do I find them? Interpreting 2D seismic and Common Risk Segment maps.
    • Source and migration
      where hydrocarbons are driven through
      3. CAP ROCK
      Impermeable rock that stops migration of hydrocarbons
      1. SOURCE ROCK
      where organic material is put under sufficient pressure
      4. PROSPECT
    • Traps
      • Geological “pockets”, that might contain hydrocarbons.
      Anticline trap
      (c) OLF
      Salt dome trap
      Fault trap
    • Environmentally Sensitive Areas
    • Sensitive Rangelands Survey
      Red areas
      You will not be allowed to bid, drill or operate in any of the red areas.
      Green areas
      Blocks in area may be awarded.
    • Common Risk Segments
      Is there a sedimentary basin and a migration route into the prospects in the area?
      Is there porous reservoir rock in the area, so that the oil or gas can be stored?
      Is there a sealing rock in the area, so that the oil and gas can be trapped?
      If all are positive, then green
      If some negative, then orange
      If mostly negative, then red
    • Common Risk Segment
      CRS. Common Risk Segment surveys tell you about the probability of a structure in the block/cell containing
      oil or gas
      Layer 3 Eocene
      1500m below the surface
      Layer 2 Paleocene
      2500m below the surface
      Layer 1 Cretaceous
      3500m below the 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.
    • Real Seismic
    • Real Seismic
    • OilSim of 2DSeismic
      Red is top of the sealing rock
      Green is top of the reservoir rock
    • Anticlinal traps
    • Fault traps
    • Leakage?
      Sealant rock
    • Order seismic
      • Buy 2D seismic from the survey shop
    • Order Seismic
      What type of data do you want?
      • Columns or Rows
      • Unprocessed or processed data
      • Interpreted or not
      Only buy maximum of 1 block of data at a time to speed up processing
    • Order Seismic
      • It takes time to process your request
    • View the Seismic
      • Red circles – navigate through the 2D seismic
    • Cross-sections
      Prospect, Reservoir
    • License Round in OilSim
      Minimum bid is $250K
      Maximum bid is $7.5M
      Enter numbers without commas (ex: 250000)
      You will bid for 3 licenses but each team will only be awarded one license
      Highest bid wins the license
      If two teams bid the same, the team with the most CP’s gets it
      Random license awarded if none of your bids are high enough
      Submit your bid before the deadline!
    • Enter bids
      • Three different blocks
      • Three bids
      • Example-
      Block 1123
      Bid 250000
    • Recap on Challenge 2
      Study Sensitive Rangelands Survey to see which blocks to avoid
      Use Common Risk Segment surveys to see which blocks to examine closer (look for green)
      Buy and study many 2D surveys to identify which ones have the most potential traps, as well as the biggest traps.
    • Solve task 2
    • 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
    • Challenge 3 : Exploration Drilling
      Company management has reviewed the licence that you were awarded and the potential cost to drill a well.
      Although the possibility of finding oil is fair, the costs involved are large. They have asked you to spread the risk.
      Challenge: Farm-out a minimum of 20% on your license and farm-in as much as you can on other good licences.
    • 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.
    • Challenge 3.1 Partnering
      Acquire 3D Seismic interpretations for the block you operate, and study the results from the licensing round-can send under “surveys” to possible partners
      Farm-out: Get others to invest 20% or more in your license
      Farm-in: Send offers to other teams to buy shares in their viable licences. Submit an offer for each viable licence, with amount offered and share wanted in whole %.
    • Real 3D Seismic
      Shows the subsurface structure in a cube.
    • 3D Seismicin OilSim
      Layer 3 Eocene
      Layer 2 Paleocene
      Layer 1 Cretaceous
    • Licences
    • Farm-in
      • Enter the total amount and the total % you want to buy
      • Add a message to the seller
      • Press “Send offer”
      • Min bid is $25000 and max is $1250000 per %
    • Financing
      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.
    • Investing
      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
    • Partnerships
      Partners pay a proportional share of all future costs incurred by the partnership
      Partners receive a proportional share of the net proceedings from any oil or gas found on the license.
      The operator team makes all decisions regarding acquiring 3D seismics, drilling of wells and testing of wells.
      Information: partners in a block can access info about drilled wells and discovered oil and gas fields.
    • Ready to drill
      Click on drill
    • Choose rig
      Truck-mounted Rigs
      Light Duty Rigs
      Heavy Duty Rigs
    • Choose Rig
      Max drilling depth is important
      Rig cost = drilling days * day rate
    • Rigs
      Few: limited number of rigs available.
      If you get one: start using it within 20 minutes.
      If you don’t: wait in a queue, if another team is using the rig.
      Price can change: rig day rates are dynamic.
    • Service providers
      9 Star quality:
      Good- costs more
      Bad: - cheaper, but reliability is low
      5 types of providers- Construction and Maintenance , Logistics, Well Services, Camp Services and Analysis
    • Penalties & Fines
      Certain problems can occur if Service Provider Selection is poor quality
      Other penalties can occur if you drill in areas indicated as problematic in the Environmental Impact Assessment
      As in real life, problems can occur randomly and these are also applied with fines levied accordingly.
      Oil spill control – 5% of overall drilling costs
    • Environmental Impact Assessment
    • Drill Position
      EIA: enviromental impact analysis shows where not to drill.
      Place your mouse where to drill
    • Drilling Position
      Layer 3 Eocene
      Layer 2 Paleocene
      Layer 1 Cretaceous
    • Drill Position
      Too deep for the chosen rig.
    • Estimated cost
    • Drilling Days
    • Drilling Result
      Proven volume (MBOE) counts
      Test may increase proven volume
      Remember to tick the boxes!
    • Testing
      Only if you discover a field – find Oil or Gas
      You decide whether you want more information about that field
      More information by doing a production test (and other tests)
      Tests costs. Tests take 10 days per field. Tests have the same day-rate as the drilling if you use the same providers.
    • Value and ROI
      Volume Range, e.g. 1-897
      Proven Reserves e.g. 1
    • Value and ROI
      • Calculation of licence value
      • Sales value
    • Value and ROI
      Value of Licence
    • Appraisal
      From Probable volume to proven reserves
    • Narrowing ranges
      Exploration well:
      0 to 572 MBOE (after drilling)
      11 to 466 MBOE (after testing)
      First appraisal well:
      25 to 333 MBOE (after drilling)
      34 to 310 MBOE (after testing)
      Second appraisal well:
      65 to 250 MBOE (after drilling)
      101 to 152 MBOE (after testing)
      Only proven MBOE counts
    • Increasing proven volumes
      Appraisal wells - proven reserves increase
      Range between proven and possible is decreased
    • Effect on calculation of licence
    • Challenge 3B Drilling
    • Continue...
      Narrow uncertainty: Drill appraisal wells to get proven volumes
      Drill into other prospects to find more proven volumes.
      Farm-in and -out: Get into other good blocks.
      Two additional licensing rounds: Repeat the processes.
      Money: Apply for more money, if you run out of cash.
    • Apply For More Funds
      Click on Apply for More Funds Tab.
      1 CP for each $100,000 applied for.
      Answer the questions: All correct gives cash and you can keep CPs. One wrong gives cash and you keep ½ of your CPs. Two wrong gives ½ cash and you lose all CPs. All wrong, you get no cash and lose all CPs.
      <10 credibility points: Apply for cash and be fined $5million for each $20million requested.
    • Licence strategy
      Exploration acreage:
      • Resources
      • Reserves
      • Production