Cost and Feasibility Evaluation of Oil & Gas Greenfields: a Search For the Best Tool
S. Chizhikov, E. Dubovitskaya and A. Kirillov
Event name: ProGREss'19
Session: O&G Exploration Projects Assessment / Оценка проектов ГРР
Publication date: 05 August 2019
Info: Extended abstract, PDF ( 1.01Mb )
Price: € 20
Each oil and gas company in Russia has its own requirements to estimate accuracy at pre-FEED stage. There are various approaches to references frame, including those suggested by AACE International. There are no independent bodies in Russia establishing cost engineering standards at early phases of projects, therefore companies rely on internal demands. Companies are forced to tighten demands to estimate accuracy and validity by current industry trends such as: reduction of large discoveries and move towards small deposits; involvement of undeveloped reservoirs and tight oil reserves; and increase in a number of mature fields demanding integrated reengineering solutions. Until recently aggregative per unit indicators were widely spread, but a demand for minimization of an error range is urging new solutions that could deliver comparability of data and a basis for a comprehensive analysis. The paper aims at determination of key criteria for setting up correct methodological and approaches to cost and feasibility evaluation of oil and gas assets on stages “Identify” (Class 5 as per AACE) and “Define” (Class 4 as per AACE). Results of such work helps to better understanding of necessary automatization that which can speed up the evaluation process and increase an accuracy level of the estimates.