OilSim Exploration OLF OILSIM 2008
Overview <ul><li>Purpose: Enhance your overall understanding of petroleum exploration </li></ul><ul><li>Multidisciplinary ...
Money <ul><li>You start with $200 Million </li></ul><ul><ul><li>You can apply for more money later </li></ul></ul><ul><li>...
Learning Points <ul><li>Where and how to find oil </li></ul><ul><li>Surveys used in exploration </li></ul><ul><li>Licensin...
Oil & Gas Industry <ul><li>Upstream </li></ul><ul><ul><li>Exploration </li></ul></ul><ul><ul><li>Field Development </li></...
Structure <ul><li>Phase 1: Find Basins </li></ul><ul><li>Phase 2: Bid for Licences </li></ul><ul><li>Phase 3: Drilling </l...
Map Columns (1 to 112) Rows (1 to 152) 600 sea bed depth Cell (73,66) Block 134 134
Login www.oilsim.com
Main screen
First task <ul><li>Find the 3 basins in the area </li></ul><ul><li>Basin: Sedimentary rocks in the deep subsurface where o...
Surveys
Gravimetric surveys <ul><li>Gravimetric surveys show the gravity in the sub-surface </li></ul><ul><li>Sedimentary rocks (“...
Gravimetric surveys
Magnetic surveys
More detail North East
Quarter map survey
Enter decision
Task 1 <ul><li>Possible to get between 0 and 100 knowledge points (KP) </li></ul><ul><ul><li>KP’s can be used e.g. when yo...
Task 1 solved <ul><li>All basins are located </li></ul><ul><li>Message sent to all teams with the results </li></ul><ul><l...
Second task <ul><li>Bid to get a exploration licence </li></ul><ul><li>Exploration licence:  A permission from the Governm...
Migration Basin Prospect Play Migration
Prospect Migration Reservoir Seal
Real Seismic                                                                                                              ...
2D Seismic surveys <ul><li>A 2D Seismic survey is a cross section of the geological layers </li></ul><ul><ul><li>along eit...
2D Seismic example
Prospects Top of sealing rock Top of reservoir rock
Cross-sections Column Row Prospect, Reservoir Basin, Source
Wells 179
Remarks <ul><li>In OilSim, there is only one type of trap: the four-way closure structural trap </li></ul><ul><ul><li>in r...
Common Risk Segment <ul><li>Prospect probability </li></ul><ul><ul><li>Red : low </li></ul></ul><ul><ul><li>Orange : mediu...
Common Risk Segment Band 3 Eocene Band 2 Paleocene Band 1 Creataceous
Spawning Grounds <ul><li>There are spawning ground areas in the map – these are environmentally sensitive areas where fish...
Spawning Ground Survey Red Area: Spawning Grounds You will not be awarded blocks that contain any red area Blue Area: Not ...
Tips <ul><li>Study spawning ground maps to see which blocks to avoid </li></ul><ul><li>Use CRS to see which blocks to stud...
Enter bid
Bidding <ul><li>Minimum bonus: 1000000 </li></ul><ul><li>Maximum bonus: 30000000 </li></ul><ul><li>You will only get one l...
Task 2 <ul><li>Submit your bid before the deadline </li></ul><ul><li>After the deadline, all bids are evaluated, and each ...
Task 2 solved <ul><li>Every team has got one exploration licence </li></ul><ul><li>Message sent to all teams with the resu...
Farm-in & -out <ul><li>The headquarters of you company has evaluated the licence that you got awarded </li></ul><ul><li>Al...
Task 3.1 Farm-out <ul><li>Get other’s to invest 20% or more in your licence (“farm-out”) </li></ul><ul><li>You can only se...
Farm-in
Send an offer
Partnerships <ul><li>Partners  pay their share of all future costs  incurred by the partnership. </li></ul><ul><li>Partner...
Task 3.1 <ul><li>Study CRS and 2D seismic surveys of the other licences </li></ul><ul><li>Submit your bids </li></ul><ul><...
Task 3.1 <ul><li>Partnerships will be established every time a seller accepts an offer </li></ul><ul><li>On the main page,...
Task 3.2 Rig <ul><li>3 rig types </li></ul><ul><ul><li>Drillships </li></ul></ul><ul><ul><li>Semi-submersibles </li></ul><...
Available Rigs
Drilling days
Drilling Depths Seabed 3500 m below seabed Layer 3 Eocene Layer 2 Paleocene Layer 1 Cretaceous 1500 m below seabed 2500 m ...
Seabed Depth
Task 3.2 Rigs
Rigs <ul><li>Limited number of rigs available </li></ul><ul><li>You can order a rig </li></ul><ul><ul><li>Start  using it ...
Task 3.3 Providers
Track Record
Select Providers
Task 3.4 Position <ul><li>You have to choose where to drill </li></ul><ul><ul><li>Which cells? </li></ul></ul><ul><li>..an...
Environmental Impact Assessment <ul><li>Buy an EIA survey to get more knowledge about the area </li></ul><ul><li>EIA equal...
3D Seismic <ul><li>Shows the structure: </li></ul><ul><ul><li>in one (of the three) horizons </li></ul></ul><ul><ul><li>in...
3D Seismic
Three targets Layer 1 Creataceous Layer 2 Paleocene Layer 3 Eocene Column 60, Row 79 Column 60, Row 78
Select Positions
Drilling position 3
Drilling position 2
Budget
Drilling results
Drilling result
Task 3.5 Testing <ul><li>If you discover a field-> decide whether you want more information about that field </li></ul><ul...
Test decision
Field value
Prospects
Licence Value
Appraisal
Appraisal <ul><ul><li>From Probable volume to proven reserves </li></ul></ul>
Narrowing ranges <ul><li>First well: </li></ul><ul><ul><li>0 to 572 MBO (after drilling) </li></ul></ul><ul><ul><li>11 to ...
Continue... <ul><li>Drill appraisal wells to narrow the uncertainty (get proven volumes) </li></ul><ul><li>Drill into othe...
Upcoming SlideShare
Loading in …5
×

Oil Sim Exploration. Presentation.Sort Hvitt

5,047 views

Published on

OilSim Exploration Norway 2008

Published in: Economy & Finance, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
5,047
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
136
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • Welcome to OilSim Exploration, the petroleum exploration business simulation. This presentation is an introduction to OilSim, intended for those that are going to participate in an OilSim Exploration event or training course.
  • Oil Sim Exploration. Presentation.Sort Hvitt

    1. 1. OilSim Exploration OLF OILSIM 2008
    2. 2. Overview <ul><li>Purpose: Enhance your overall understanding of petroleum exploration </li></ul><ul><li>Multidisciplinary challenge </li></ul><ul><li>You are an exploration team in charge of a new petroleum province </li></ul><ul><li>Your task is to get maximum return on investment (ROI) </li></ul>
    3. 3. Money <ul><li>You start with $200 Million </li></ul><ul><ul><li>You can apply for more money later </li></ul></ul><ul><li>Value: </li></ul><ul><ul><li>Net value of the oil fields discovered </li></ul></ul><ul><ul><li>MINUS costs (surveys, wells, etc.) </li></ul></ul><ul><li>Winning team: </li></ul><ul><ul><li>highest return on investment (ROI) </li></ul></ul><ul><ul><li>ROI = Earnings / Funds received </li></ul></ul>
    4. 4. Learning Points <ul><li>Where and how to find oil </li></ul><ul><li>Surveys used in exploration </li></ul><ul><li>Licensing rounds </li></ul><ul><li>Farm-in and Partnerships </li></ul><ul><li>Rigs and Sub-contractors </li></ul><ul><li>Addressing environmental issues </li></ul><ul><li>Reducing uncertainty </li></ul><ul><li>Economically viable volumes </li></ul>
    5. 5. Oil & Gas Industry <ul><li>Upstream </li></ul><ul><ul><li>Exploration </li></ul></ul><ul><ul><li>Field Development </li></ul></ul><ul><ul><li>Production </li></ul></ul><ul><li>Downstream </li></ul><ul><ul><li>Refining </li></ul></ul><ul><ul><li>Distribution </li></ul></ul>
    6. 6. Structure <ul><li>Phase 1: Find Basins </li></ul><ul><li>Phase 2: Bid for Licences </li></ul><ul><li>Phase 3: Drilling </li></ul><ul><ul><li>3.1 Farm-in </li></ul></ul><ul><ul><li>3.2 Order Rig </li></ul></ul><ul><ul><li>3.3 Select Providers </li></ul></ul><ul><ul><li>3.4 Select Position </li></ul></ul><ul><ul><li>3.5 Testing </li></ul></ul>
    7. 7. Map Columns (1 to 112) Rows (1 to 152) 600 sea bed depth Cell (73,66) Block 134 134
    8. 8. Login www.oilsim.com
    9. 9. Main screen
    10. 10. First task <ul><li>Find the 3 basins in the area </li></ul><ul><li>Basin: Sedimentary rocks in the deep subsurface where oil and gas was generated </li></ul><ul><li>Procedure </li></ul><ul><ul><li>Buy and study magnetic and gravimetric surveys </li></ul></ul><ul><ul><li>Submit 3 block numbers; one for each basin centre </li></ul></ul>
    11. 11. Surveys
    12. 12. Gravimetric surveys <ul><li>Gravimetric surveys show the gravity in the sub-surface </li></ul><ul><li>Sedimentary rocks (“basins”) have lower densities than the surrounding crystalline rocks </li></ul><ul><li>Low gravity (green) -> Basins </li></ul><ul><li>High gravity (red) -> Crystalline rocks </li></ul>
    13. 13. Gravimetric surveys
    14. 14. Magnetic surveys
    15. 15. More detail North East
    16. 16. Quarter map survey
    17. 17. Enter decision
    18. 18. Task 1 <ul><li>Possible to get between 0 and 100 knowledge points (KP) </li></ul><ul><ul><li>KP’s can be used e.g. when you apply for money </li></ul></ul><ul><li>Must be solved before deadline </li></ul><ul><li>After the deadline, all submissions are evaluated </li></ul>
    19. 19. Task 1 solved <ul><li>All basins are located </li></ul><ul><li>Message sent to all teams with the results </li></ul><ul><li>Oil and gas is close to the basins </li></ul><ul><li>Next step: First licensing round </li></ul><ul><ul><li>The blocks around one of the basins are on offer </li></ul></ul>
    20. 20. Second task <ul><li>Bid to get a exploration licence </li></ul><ul><li>Exploration licence: A permission from the Government to explore a block </li></ul><ul><li>Procedure </li></ul><ul><ul><li>Buy and study Common Risk Segment Maps, 2D Seismic surveys, and Spawning Ground Maps </li></ul></ul><ul><ul><li>Submit 3 bids </li></ul></ul><ul><ul><ul><li>Block number </li></ul></ul></ul><ul><ul><ul><li>Amount offered to Government (“bonus”) </li></ul></ul></ul>
    21. 21. Migration Basin Prospect Play Migration
    22. 22. Prospect Migration Reservoir Seal
    23. 23. Real Seismic                                                                                                                                                                         
    24. 24. 2D Seismic surveys <ul><li>A 2D Seismic survey is a cross section of the geological layers </li></ul><ul><ul><li>along either a column or a row </li></ul></ul><ul><li>Is used for locating prospects </li></ul><ul><li>Look out for traps </li></ul><ul><li>Three separate geological layers </li></ul>
    25. 25. 2D Seismic example
    26. 26. Prospects Top of sealing rock Top of reservoir rock
    27. 27. Cross-sections Column Row Prospect, Reservoir Basin, Source
    28. 28. Wells 179
    29. 29. Remarks <ul><li>In OilSim, there is only one type of trap: the four-way closure structural trap </li></ul><ul><ul><li>in reality, there are several other types </li></ul></ul><ul><li>Three prospecting systems </li></ul><ul><ul><li>3. Eocene (1.500 m below seabed) </li></ul></ul><ul><ul><li>2. Paleocene (2.500 m -) </li></ul></ul><ul><ul><li>1. Cretaceous (3.500 m -) </li></ul></ul>
    30. 30. Common Risk Segment <ul><li>Prospect probability </li></ul><ul><ul><li>Red : low </li></ul></ul><ul><ul><li>Orange : medium </li></ul></ul><ul><ul><li>Green : high </li></ul></ul>There is one CRS for each geological layer
    31. 31. Common Risk Segment Band 3 Eocene Band 2 Paleocene Band 1 Creataceous
    32. 32. Spawning Grounds <ul><li>There are spawning ground areas in the map – these are environmentally sensitive areas where fish breed </li></ul><ul><li>Some spawning grounds might be in the blocks that have been offered </li></ul><ul><li>However, no licences will be awarded in blocks that are spawning grounds </li></ul><ul><li>To find out which blocks are spawning grounds, you can buy a Spawning Ground Survey </li></ul>
    33. 33. Spawning Ground Survey Red Area: Spawning Grounds You will not be awarded blocks that contain any red area Blue Area: Not Spawning Grounds The survey covers the whole area
    34. 34. Tips <ul><li>Study spawning ground maps to see which blocks to avoid </li></ul><ul><li>Use CRS to see which blocks to study </li></ul><ul><li>Buy and study many 2D surveys </li></ul><ul><li>Focus on shallow water blocks </li></ul><ul><ul><li>It is cheaper to drill exploration wells in shallow water </li></ul></ul><ul><ul><li>It is more economically viable to produce oil and gas in shallow water </li></ul></ul>
    35. 35. Enter bid
    36. 36. Bidding <ul><li>Minimum bonus: 1000000 </li></ul><ul><li>Maximum bonus: 30000000 </li></ul><ul><li>You will only get one licence </li></ul><ul><li>Highest bid gets the licence </li></ul><ul><li>If you lose on all three blocks, you will get a random licence (of the ones that are left) </li></ul><ul><li>Do submit 3 bids -> more KP’s and higher probability for success </li></ul>
    37. 37. Task 2 <ul><li>Submit your bid before the deadline </li></ul><ul><li>After the deadline, all bids are evaluated, and each team gets one and only one licence </li></ul>
    38. 38. Task 2 solved <ul><li>Every team has got one exploration licence </li></ul><ul><li>Message sent to all teams with the results </li></ul><ul><li>Knowledge Points: a measure of how prosperous the blocks the team bid for were </li></ul><ul><li>Next step: Farm-in </li></ul>
    39. 39. Farm-in & -out <ul><li>The headquarters of you company has evaluated the licence that you got awarded </li></ul><ul><li>Although the possibility of finding oil is fair, the costs involved are large, and the headquarters wants you to spread the risk. </li></ul><ul><li>This is accomplished by: </li></ul><ul><ul><li>investing in other licences (farm-in), and </li></ul></ul><ul><ul><li>letting other invest in your licence (farm-out) </li></ul></ul>
    40. 40. Task 3.1 Farm-out <ul><li>Get other’s to invest 20% or more in your licence (“farm-out”) </li></ul><ul><li>You can only send farm-in offers (!) </li></ul><ul><ul><li>Offers to buy parts of other licences </li></ul></ul><ul><li>Procedure for farming in: </li></ul><ul><ul><li>Study CRS and 2D Seismic surveys </li></ul></ul><ul><ul><li>Submit one offer for each viable licence </li></ul></ul><ul><ul><ul><li>Amount offered </li></ul></ul></ul><ul><ul><ul><li>Share wanted (in whole %) </li></ul></ul></ul>
    41. 41. Farm-in
    42. 42. Send an offer
    43. 43. Partnerships <ul><li>Partners pay their share of all future costs incurred by the partnership. </li></ul><ul><li>Partners receive their share of the net proceedings from any oil found on the licence </li></ul><ul><li>The operator team takes all decisions regarding acquirement of 3D seismic, drilling of wells and testing of wells </li></ul>
    44. 44. Task 3.1 <ul><li>Study CRS and 2D seismic surveys of the other licences </li></ul><ul><li>Submit your bids </li></ul><ul><ul><li>Minimum amount 100,000 for 1% </li></ul></ul><ul><li>You are not allowed to drill before at least 20% of your licence has been farmed out </li></ul><ul><li>You can farm-in & -out at any time </li></ul><ul><li>Partners in a block get all info about drilled wells and discovered oil and gas fields </li></ul>
    45. 45. Task 3.1 <ul><li>Partnerships will be established every time a seller accepts an offer </li></ul><ul><li>On the main page, you can see all the licences </li></ul><ul><ul><li>The licences you operate </li></ul></ul><ul><ul><li>The licences you have invested in </li></ul></ul><ul><ul><li>Other licences </li></ul></ul><ul><li>Next task: order rig </li></ul>
    46. 46. Task 3.2 Rig <ul><li>3 rig types </li></ul><ul><ul><li>Drillships </li></ul></ul><ul><ul><li>Semi-submersibles </li></ul></ul><ul><ul><li>Jack-up rigs </li></ul></ul><ul><li>Different water depths, Different day rates </li></ul><ul><ul><li>Rig cost = drilling days * day rate </li></ul></ul>
    47. 47. Available Rigs
    48. 48. Drilling days
    49. 49. Drilling Depths Seabed 3500 m below seabed Layer 3 Eocene Layer 2 Paleocene Layer 1 Cretaceous 1500 m below seabed 2500 m below seabed “ water depth”
    50. 50. Seabed Depth
    51. 51. Task 3.2 Rigs
    52. 52. Rigs <ul><li>Limited number of rigs available </li></ul><ul><li>You can order a rig </li></ul><ul><ul><li>Start using it within 20 minutes </li></ul></ul><ul><li>Not enough for all </li></ul><ul><ul><li>Wait in a queue, if another team is using the rig </li></ul></ul><ul><li>Rig day rates are dynamic </li></ul>
    53. 53. Task 3.3 Providers
    54. 54. Track Record
    55. 55. Select Providers
    56. 56. Task 3.4 Position <ul><li>You have to choose where to drill </li></ul><ul><ul><li>Which cells? </li></ul></ul><ul><li>..and how deep to drill </li></ul><ul><ul><li>Either to the Eocene horizon </li></ul></ul><ul><ul><li>Through the Eocene to the Paleocene horizon, </li></ul></ul><ul><ul><li>or through the Eocene, the Paleocene, and to the Cretaceous horizon </li></ul></ul>
    57. 57. Environmental Impact Assessment <ul><li>Buy an EIA survey to get more knowledge about the area </li></ul><ul><li>EIA equals </li></ul><ul><ul><li>Less probability for drilling problems </li></ul></ul><ul><ul><li>Less severe consequences if you run into problems </li></ul></ul><ul><li>In the EIA you can also see which drilling locations to avoid </li></ul>
    58. 58. 3D Seismic <ul><li>Shows the structure: </li></ul><ul><ul><li>in one (of the three) horizons </li></ul></ul><ul><ul><li>in one block </li></ul></ul><ul><li>Look out for “tops” </li></ul><ul><ul><li>a top = a trap = a prospect </li></ul></ul>
    59. 59. 3D Seismic
    60. 60. Three targets Layer 1 Creataceous Layer 2 Paleocene Layer 3 Eocene Column 60, Row 79 Column 60, Row 78
    61. 61. Select Positions
    62. 62. Drilling position 3
    63. 63. Drilling position 2
    64. 64. Budget
    65. 65. Drilling results
    66. 66. Drilling result
    67. 67. Task 3.5 Testing <ul><li>If you discover a field-> decide whether you want more information about that field </li></ul><ul><li>You get more information by doing a production test (and other tests) </li></ul><ul><li>Tests take 10 days per field </li></ul><ul><li>Tests have the same day-rate as the drilling (you use the same providers) </li></ul>
    68. 68. Test decision
    69. 69. Field value
    70. 70. Prospects
    71. 71. Licence Value
    72. 72. Appraisal
    73. 73. Appraisal <ul><ul><li>From Probable volume to proven reserves </li></ul></ul>
    74. 74. Narrowing ranges <ul><li>First well: </li></ul><ul><ul><li>0 to 572 MBO (after drilling) </li></ul></ul><ul><ul><li>11 to 266 MBO (after testing) </li></ul></ul><ul><ul><li>Proven volume: 11 MBO </li></ul></ul><ul><li>Second well </li></ul><ul><ul><li>11 to 233 MBO (after drilling) </li></ul></ul><ul><ul><li>35 to 210 MBO </li></ul></ul><ul><ul><li>Proven volume: 35 MBO </li></ul></ul>
    75. 75. Continue... <ul><li>Drill appraisal wells to narrow the uncertainty (get proven volumes) </li></ul><ul><li>Drill into other prospects </li></ul><ul><li>Farm-in and -out </li></ul><ul><li>Two additional licensing rounds </li></ul><ul><li>Apply for more money, if you run out of cash </li></ul><ul><li>Winner: highest ROI </li></ul>

    ×