Technological Development to Enhance the Value of a Exploration Business Case
A. Minich, Y. Berezovski, D. Metelkin, A. Timirgalin, G. Volkov and I. Mukminov
Event name: ProGREss'19
Session: O&G Exploration Projects Assessment / Оценка проектов ГРР
Publication date: 05 August 2019
Info: Extended abstract, PDF ( 421.62Kb )
Price: € 20
For the tasks of geological and economic assessment the benchmarking method is widely used, which implies the assessment of the development of a field using methods and technologies that are the most applicable and successful at equivalent fields at the time of the assessment. Taking into account the speed of technological development for hard-to-recover reserves, in fact, the deposits are more likely not to be developed by the technologies and approaches that are laid in the assessment. Thus, the potential of some options is underestimated. In this paper an alternative approach is proposed, which implies a geological and economic assessment of options, taking into account the effectiveness of new technologies that are being introduced, which will become basic by the time the development of the estimated option begins.The performed calculations showed that the use of new technologies can increase the investment attractiveness of the option and get a rating of J> 1. This means that if there is an interesting project from the point of view of the reserves, it is possible to act as the customer for the development and drilling technology, which will provide a profitable case.