How should ‘Bion Oil’, an oil & gas giant, expand its business in ‘Zeenisia’, a developing country in Africa?: Find the strategy in short in the presentation

1. Shell Case Study
Cognizance-2014
How should ‘Bion Oil’, an oil & gas giant, expand its business in
‘Zeenisia’, a developing country in Africa?

2. Agenda
Introduction
Our approach
Cost Analysis
HSSE Plans
Key stakeholders
Profitable businesses

3. INTRODUCTION
Technical, Economic, Commercial, Operational and Political
Techno-Economic-Commercio-Politico-Operational
Bion Oil aspires to expand its business in Zeenisia.
Objective:
To come up with a development strategy that raises oil production to 200,000 bpd by maximizing oil recovery;
at the same time ensuring operational safety by mitigating all key risks involved and complying with the local
content requirements.
Key Considerations:

4. Our Approach…
• Increase production to 200,000 bpd as early as possible
• Maximize production in a phased manner.
Increasing number of wells
Well integrity
Achieve preliminary target
Well placement is key
Injection wells & surface facilities
To check fall in production with
time
Facilities to check water cut
Location and number depends
on the aquifer behavior
Rate of production can suggest
aquifer drive
Techniques for Enhanced recovery
Develop facilities for wells
suffering from water
CO2 from flare gas can be used
for EOR
15 years
Achieve 200,000 bod
within 2 years
- Requires 25 new wells
- Solving well integrity
issues
25+10+10=45 wells
375-525 total producing
wells are required to
achieve plateau
production in 5 years
Recoverable Reserves:
Low: 1.9 billion barrels
Mid: 2.75 billion barrels
High: 3.6 billion barrels
Reservoir quality:
Good porosity
Good permeability
Phase 2
Phase 3

5. Cost Analysis
Cost (in
MMUSD) Minimum case
Maximum
case
Well cost 5625 7875
Water cut 750 1250
Well integrity 360 520
Total 6735 9645
A basic cost estimate (approx.)
Total cost = Basic cost + Artificial lift expenditure
+ Environment protection cost
Minimum case: 7 + 3= 10 billion $ over 15 years
Maximum case: 10 + 3= 13 billion $ over 15 years
Uncertainty in calculating number of wells facing water cut
and well integrity issues

6. HSSE plans
• Effective management system.
• Emergency response system (Particularly related to landmines).
• Journey management system.(Transportation)
• Use of water control systems –mechanical and chemical
• Water management-downhole factory
• Building facility to store produced gas.
• Blow out prevention.
• Use of environmentally friendly mud: water-based or synthetic based.
• Use of non-toxic frac fluids for well preparation.
• Re-use frac flow back water.

7. Key stakeholders
• National and Provincial government of Zeenisia and Fikristan.
• Local population and labour which will be trained
• Local contractors and suppliers
• Employees of Bion oil
• Communities located around well sites.
• Consumers of the produced oil and gas.
• Environment Assessment Departments

8. Profitable businesses
• Facility to collect, transport and sell produced gas.
• Refinery –world’s second largest oil and gas reserves possibly present.
• Byproducts processing and sale
• Pipeline set up in the area so that any operator can use them in return for some profit share.

9. Thank you