Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Presentation 5

1,513 views

Published on

  • Be the first to comment

Presentation 5

  1. 1. Petroleum Project Economics Econ210D Presentation 5 Incremental Project Analysis Date
  2. 2. Multi-developmental Scenarios <ul><li>Multiple potential developments of field during production </li></ul><ul><li>Each has a different effect on operations and cashflow </li></ul><ul><li>Which one(s) to choose? </li></ul>Incremental Project Analysis Date
  3. 3. Types of Developments <ul><li>Projects to boost production through an increase in hydrocarbon recovery. </li></ul><ul><li>Measures to achieve cost savings </li></ul><ul><li>New development phases such as the commissioning of gas production from a hitherto oil producing field </li></ul>Incremental Project Analysis Date
  4. 4. Incremental Cash Flows <ul><li>To make an economic evaluation of a new development pertaining to a oil or gas field, incremental cash flows are considered. </li></ul><ul><li>These are the changes in cash flows associated with the new development. </li></ul>Incremental Project Analysis Date
  5. 5. Incremental Cash Flows <ul><li>Apply NPV and IRR to incremental cash flows. </li></ul><ul><li>Submit the economic evaluation and recommendation to the management team. </li></ul><ul><li>A decision is made. </li></ul>Incremental Project Analysis Date
  6. 6. Oil and Gas Recovery <ul><li>There are three levels of hydrcarbon recovery: </li></ul><ul><li>Primary recovery </li></ul><ul><li>Secondary recovery </li></ul><ul><li>Tertiary oil recovery </li></ul>Incremental Project Analysis Date
  7. 7. Primary recovery <ul><li>Primary recovery, where reservoir energy is used to produce oil and gas. The average recovery of this stage is about 15 to 20% of OOIP. </li></ul>Incremental Project Analysis Date
  8. 8. Secondary Recovery <ul><li>Secondary recovery, where energy is given to reservoir by injection of water or gas recovers an additional 20 to 25% OOIP. </li></ul>Incremental Project Analysis Date
  9. 9. Tertiary recovery <ul><li>Tertiary oil recovery, which historically follows secondary recovery, recovers an additional 15 to 20 % OOIP over secondary. </li></ul>Incremental Project Analysis Date
  10. 10. Expected Oil Recovery Factors ( % OOIP) Incremental Project Analysis Date Primary Methods Liquid and rock expansion 5 Solution gas drive 20 Gas cap expansion 30 Gravity drainage 40 Water influx 60
  11. 11. Expected Oil Recovery Factors ( % OOIP) Incremental Project Analysis Date Secondary Methods Gas re-injection Up to 70% Water flooding Up to 70%
  12. 12. Expected Oil Recovery Factors ( % OOIP) Incremental Project Analysis Date Tertiary Methods Thermal (Steam, Combustion, Hot water) Up to 80 % Miscible (CO2, HC gases, N2, Flue gas) Up to 80 % Chemical (Polymers, Surfactants) Up to 80 %
  13. 13. Tertiary Recovery Methods <ul><li>Thermal recovery, by adding heat to the reservoir fluids to make them more mobile. </li></ul><ul><li>Gas injection for miscible sweep of the oil, is achieved by injecting flue gases or CO2 ,which dissolve in the oil, reducing its viscosity and increasing its mobility. </li></ul><ul><li>Chemical injection, either using polymers to “thicken” the injected water to increase its viscosity and so improve water-flood efficiency, or using surfactants, to improve the mobility of the oil droplets by reducing the surface tension. </li></ul>Incremental Project Analysis Date
  14. 14. Multi-developmental Scenarios <ul><li>Horizontal wells </li></ul><ul><li>Infill drilling </li></ul><ul><li>Workovers </li></ul><ul><li>Additional compression </li></ul><ul><li>Additional steam </li></ul><ul><li>Waterflood </li></ul><ul><li>Alkaline-Surfactant-Polymer flood </li></ul><ul><li>Microbes in wellbore </li></ul>Incremental Project Analysis Date
  15. 15. Home Work <ul><li>Using the data in the following slide, together with the data from presentation 4 calculate incremental the cash inflow and total cash outflow. </li></ul><ul><li>Using the incremental cash flows determine: Payback, NPV and IRR. </li></ul>
  16. 16. Year Oil Production MMbbls Oil Price ($/BBL) Total Capex $m Total Opex $m 1986 0 15.0 -30 0 1987 0 19.2 -22 0 1988 0 16.0 -112 0 1989 0 19.6 -110 0 1990 0 24.5 -77 0 1991 2 21.5 -10 -1.4 1992 4 20.6 -7 -2.8 1993 8 18.5 -4 -8.4 1994 15 17.2 0 -19.6 1995 14 18.4 0 -15.7 1996 14 22.2 0 -13.3 1997 12 20.6 -57 -11.3 1998 9 14.4 -23 -9.6 1999 10 19.3 0 -10.6 2000 9 30.3 0 -9 2001 8 25.9 0 -7.8 2002 7 26.1 0 -6.8 2003 6 31.1 0 -4.7 2004 5 41.4 0 -3.3 2005 0 56.5 0 0

×