2. 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 Knowledge
Points.
3. You will start with $50 million
You can apply for more later.
CreatingValue
Profit is measured by the net
value of the oil and gas fields
discovered MINUS all costs
involved.
Winning team has highest ROI
ROI is calculated asValue
created DIVIDED by Funds
received.
4. You get KPs for doing well
during the simulation
Correct answers and sensible
decisions are awarded with KPs
KPs are a measure of ability and credibility
A team’s KPs are considered when bidding for
blocks and applying for funds from the HQ
5. 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.
9. Columns e.g C1, and C54
Rowse.g.R35andR163
Block
Blocks are
divided into
smaller cells
e g. C57,R73
10. 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.
11. 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
16. 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.
20. Locate edges of
the continous
basin structure
(yellow area)
Locate the
diagonals and
thus basin centre
21. Locate edges of
the continous
basin structure
(purple area)
Locate the
diagonals and
thus basin centre
22.
23. Example:
Top basin on both
maps
Calculate the
midpoint
between the
gravimetric and
magnetic centres
found
= C55 and R105
C50
R100
C60
R110
24.
25. 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 KPs. All
three centres must be located
to get full knowledge points.
26.
27. All teams have submitted their answers.
Basin centres are located.
Message in Inbox. All teams have answers
and KPs awarded.
28. 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.
29. 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.
30. 1. SOURCE ROCK
where organic
material is put under
sufficient pressure
2. MIGRATION ROCK
where hydrocarbons
are driven through
3. CAP ROCK
Impermeable
rock that stops
migration of
hydrocarbons 4. PROSPECT
31. (c) OLF
Anticline trap
Fault trap
Stratigraphic
trap
Salt dome trap
Geological “pockets”, that might contain hydrocarbons.
32.
33. 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.
34. 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
35. Layer 3 Eocene
1500m below the surface
Layer 2 Paleocene
2500m below the surface
Layer 1 Cretaceous
3500m below the surface
CRS. Common Risk Segment
surveys tell you about the
probability of a structure in
the block/cell containing
oil or gas
Surface
36. 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.
45. 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
49. 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
KP’s gets it
Random license awarded if none of your bids are
high enough
Submit your bid before the deadline!
51. Study Environmentally SensivityArea maps
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.
52.
53. Message sent to all
teams with the
results
Knowledge Points
are given for
prosperity of the
blocks you bid for
Every team has got
one exploration
license
54. 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.
55. 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.
56. 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 %.
59. Either accept the
amount or % the
license owner
requests, or amend
the amounts to your
own offer
Add a message to
the seller
Press “Send offer”
Min bid is $25000
and max is $1250000
per %
60. 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
61. 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.
62. 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
63. 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.
67. 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.
68. 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
69. 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 ImpactAssessment
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
76. Volume Range
in MBOE counts
Test may
increase Proven
MBOE if oil or
gas found
77. 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.
78. Volume Range
Proven Reserves
Calculation of
licence value
Sales value
Costs
Value of Licence
84. 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.
85. Click on Apply for More FundsTab.
1 KP for each $100,000 applied for.
Answer the questions: All correct gives cash
and you can keep KPs. One wrong gives cash
and you keep ½ of your KPs.Two wrong gives
½ cash and you lose all KPs. All wrong, you
get no cash and lose all KPs.
<10 knowledge points: Apply for cash and be
fined $5million for each $20million requested.
86. Access to new
exploration
areas
Make new
discoveries
World class
project
performance
Increased
recovery
through
systematic plans
and actions
Exploration acreage:
• Resources
• Reserves
• Production
Editor's Notes
The long and bumpy road for oil from the underground to your tank, is called the oil and gas industry value chain.The value chain is divided further into these parts:Upstream is about getting the hydrocarbons up from the ground, and comprises of activities related to exploration, field development, construction, production and abandonment. By its nature, the exploration phase is common for both oil and gas, but soon afterwards, the oil and gas value chain will segregate into two parallel value chains.Midstream is about transportation and storage, as well as oil refining and gas processing.Downstream is about distribution and retail sales of gas, fuels and lubricants, plastics and other hydrocarbon derivatives to industrial and consumer markets.OilSim Exploration is all about the exploration part of the oil and gas industry. Exploration is about finding the hydrocarbons and proving that they are in sufficient quantities to start producing. OilSim Field development and Production is about actually taking the oil or gas out of the subsurface.
Since the CRS show the probabilities of prospects in only one particular horizon or layer, it is necessary to purchase the CRS for all 3 layers so that you can determine which area within the licensing area contains the highest probability of containing oil and gas. So on the CRS maps shown here the area circled in black on the OilSim map and each of the CRS shows that the area in question is within the licensing area and is green on all three CRS layers, indicating high probability of oil and gas on all 3 layers within the same area or blocks. Potentially an area that requires further investigation for individual prospects.
Seismic surveys are made from sound waves that are sent into the subsurface, reflected, and measured when they get back to the surface.This slide shows an example of a real seismic line. It shows a cross-section of the subsurface with the blue and red lines indicating changes in velocity of the wave and therefore changes in geological structures in the subsurface.The black, red, and green lines are lines added as interpretation of the data by geologists.black lines are so-called faults, which have happened for instance after earth quakes or other dramatic geological events.green lines are where geologists think the reservoir rock beginsred lines are where the geologists think the sealing rock begins In this particular case there is a prospect indicated under the orange arrow, within the grey triangle.
Seismic surveys are made from sound waves that are sent into the subsurface, reflected, and measured when they get back to the surface.This slide shows an example of a real seismic line. It shows a cross-section of the subsurface with the blue and red lines indicating changes in velocity of the wave and therefore changes in geological structures in the subsurface.The black, red, and green lines are lines added as interpretation of the data by geologists.black lines are so-called faults, which have happened for instance after earth quakes or other dramatic geological events.green lines are where geologists think the reservoir rock beginsred lines are where the geologists think the sealing rock begins In this particular case there is a prospect indicated under the orange arrow, within the grey triangle.
Hear the area between the reservoir and the sealant rock has been shaded in to show you whether you still have a seal at the fault or a gap where leakage could occur.
As this figure illustrates, you can drill through all three horizons in one well.You can even drill a deviated well, so that the position is not exactly the same in all horizons.The deviation can be one cell per horizon.
When reviewing a farm-out offer you can either accept the amount or % the license owner requests, or amend the amounts to your own offer. Add a message to the seller explaining why they should choose your team and press “Send offer”
Financing – Is where a team is able to accept offers, and therefore receive money or “finance” for a % of their own blocks When a team receives a Farm-In offer it appears under financing on the right hand side of the homepage
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 blocksRemember you must have farmed-out 20% of your own block before you can drill.
The next task is to choose which rig to use to drill the exploration well.There are three types of rigs: drillships for the deepest waters, semi-submersible rigs for middle waters, and jack-up rigs for shallow waters.The rigs have different costs per day, and the drilling days depend on how deep you drill into the subsurface and which service providers you choose
In most cases there are fewer rigs than teams, so you need to be fast to get good and cheap rigs for your wells.When you order a rig you need to start using it within 20 minutes.If you do not use it within the 20 minutes, you will pay for 20 days of use.You can release a rig that you have ordered on the home page.The rig rates are dynamic, so that popular rigs tend to have increasing prices, while less popular rigs become cheaper.
As this figure illustrates, you can drill through all three horizons in one well.You can even drill a deviated well, so that the position is not exactly the same in all horizons.The deviation can be 1 cell for each horizon.
Inputting estimated cost of drilling gives you knowledge points. You need to add all the costs of the rig and the service providers together and multiply this by the number of days you think it will take you to drill. The oil spill control is voluntary but costs 5% of the drilling amount per day but will earn you more knowledge points and cost you less to clear an oil spill if it happens.
To determine how long it will probably take to complete drilling, check out the “drilling Information” tab.
When you have discovered a field the first decision you need to make is whether you want more information about that field right away and BEFORE you drill another exploration well.You can get more information by doing a production test, which is a process in which you try to produce oil or gas from the field.In OilSim production tests take 10 days per oil and gas field and you use the same providers as before.
When you have drilled the first well, you only have a small sample of the new-found oil or gas field. This is evident by the wide ranges of the area, thickness, quality, and volume variables. These wide ranges tell you that you actually do not know much about the field.After drilling and testing, your next step therefore is to drill another well – and test it. This is called an appraisal well.Normally it takes at least three or four wells into a field before the license block becomes economically viable.Sometimes it takes much more, and therefore you should not give up if the first wells into a field do not give any license value.However, you should give up if the upper boundaries of the field become so low that there is no chance that it becomes economically viable