Oil and Gas ConsultancyOil and Gas Consultancy
On any given project our economics group can have responsibility for any number of issues including establishing economically recoverable reserves, economic viability of an investment, establishing economic terms for an oil and gas agreement, performing sales valuations, performing buying valuations, establishing the economically optimum scheme for a given development. As such it tends to work closely with our facilities engineering group utilising the cost, scheduling and production data genrated by this group as the basis for its valuations and economic assessments. The group also tends to work closely with our Clients to understand their commercial requirements for a particular investment.
As indicated earlier economic analysis is closely coordinated with our surface facilities group. Data received from them tends to be analysed using excel based economic models that are constructed based on the commercial agreement associated with any given deal or reserves assessment. This allows us to provide clients with a full appreciation of the value of a particular investment once it has been the subject of taxes, royalties and other economic rents dictated by the commercial agreeement and host country fiscal terms.
The projects below required economics input:
Carried out a prospectivity assessment on the 12 license areas offered by the Government of Iraq - Iraq Central Authorities - in its 4th Licensing Round. The assessment was geoscience and geology based and was designed to establish the prospective resources associated with each block along with the likely characteristics of the hydrocarbons likely to be found.
This assessment was based on Bayphase’s extensive experience conducting studies in country and its commercially available library of Iraq seismic, well and other data; see the Iraq Kingdom Project for details on this. The study also had access to the majority of the commercially available geological data on Iraq.
The study produced a full inventory of prospective resources by license, an assessment of chance of success and a ranking of risked resource designed to guide decision making processes associated with bidding for acreage in the 4th licensing round.
Developed an independent resource assessment and valuation for a license area located in Burundi’s sector of Lake Tanganyika. Reviewed regional geological reports, geochemical studies, seismic interpretations and other data available in the region. The assessments were conducted in accordance the rules and guidelines set down by the Johanesburg Stock Exchange which from a resource view point are based on standards set down by the Petroleum Resource Management System.
Developed an ITER for a Johannesburg Stock Exchange transaction associated with an onshore exploration block in the Democratic Republic of Congo in accordance with guidelines set down by the Exchange. The report set out the prospective resources for the block and was used by the Client as a part of his submission to gain shareholder approval for a farm-in by a Major Oil Company. The Report can be viewed through clicking this link: JSE Circular.
The work also included a re-valuation of the block following the farm in based on discounted cashflow, market and cost methods.
Developed a Competent Person Report for an AIM listing for onshore exploration block in the Democratic Republic of Congo in accordance with the AIM Guidance Note for Mining, Oil and Gas Companies published in June 2009. The report set out the prospective resources for the block and was used by the Client as a part of his submission to list on the Alternative Investment Market (AIM) in London. The work also included a valuation of the block. The listing generated funds that formed the basis for the Client’s exploration campaign. The Competent Person Report can be viewed by clicking this link: CPR Block 3 DRC.
Developed an Independent Reserves Report for an onshore exploration block in the Democratic Republic of Congo in accordance with the PRMS standard and regulations set down by the Johannesburg Stock Exchange (JSE). The work also included a valuation of the blocks. The Report formed the basis for a successful company restructuring and capital raising process implemented by the Client on the JSE.
Developed an independent reserves assessment for four newly discovered fields in this ultra deep water license area in Nigeria in conformance with the PRMS standard. Carried out full seismic interpretation, prepared a reservoir assessment and production profiles, developed outline field development plans and also conducted a full development and operating cost assessment using our NETCO$TER cost Evaluation Software.
The discoveries are located in ultra deep water depths and required the use of innovative productions solutions in the development scheme. Based on the commercial terms associated with the acreage and the technical and cost assessment described above developed an independent valuation of the discoveries.Also carried out a full prospectivity assessment of the acreage based on recently acquired 3D seismic data. The work was conducted as part of a farm-out process which is now complete. The Client disposed of a major portion of his 100% holding in the Block.
Performed reserves determinations and valued two offshore oil fields associated with this license area, for a fund prospectus developed by the Client. The reserves determination was conducted to the PRMS standard. The work also included the generating outline field development plans, developing cost estimates for developpment and operations and implementation schedules as the basis for the valuations. The valuation was used to determine the price strategy for the prospectus based on fixed internal rate of return criteria.
Carried out the upstream section of gas utilisation study designed to establish if implementation of an early gas power generation scheme in the license area was technically and economically feasible.Developed a reservoir simulation model for the discovered fields and established a field development plan for the production of gas suitable for power generation.The plan included a scheme to recover associated liquids and to produce LPG for local consumption. Carried out costing and economic analysis of the upstream scheme to establish the optimum production scheme. Development and operating costs were generated using our NETCO$TER cost Evaluation Software.
Assisted a Client looking to acquire a share in of a number of assets in western Kazakhstan, in the Pre-Caspian Basin and the Mangyshlak. Carried out full technical and economic evaluations of each asset including: seimic interpretation verification; geological model validation; development of independent PRMS assessment including 1P, 2P and 3P reserves and contingent resources; review of detailed Field Development Plans (in Russian); detailed cost verification of development and operating costs using our NETCO$TER cost Evaluation Software; asset valuation including Net Present Value and Fair Market Value - the latter was based on Bayphase'proprietary data base of Kazakhstan oil field equity transactions. Assisted the Client in making his acquisition decisions and development of his acquisition strategy.
Developed independent probabilistic reserves assessment for this field in Poland's sector on the Baltic Sea in accordance with PRMS standard. This field is a small clastic structure with relatively homogeneous rock types and properties. Developed a fully integrated geological and reservoir simulation model for the field. The work included full assessment and interpretation of a 3D seismic data set, development of a static geological model and a dynamic reservoir model. Carried our modelling to determine optimum configuration through consideration of gas export with water injection support, gas re-injection with water injection support and water alternating gas injection alternatives for the field. Also carried out conceptual field development planning to determine the associated surface production scheme. Special features considered included correct modelling of miscible gas injection using PVT analysis and extrapolation of a range of PVT tests. Prepared a reserves certification statement in accordance the PRMS standard.
Developed an independent probabilistic resources and reserves assessment for this offshore block in Tunisia in accordance with the PRMS standard. Also carried out a valuation of the block for potential equity purchase by the Client. The valuation was based on development and operating cost estimates established independently by our consultants.
Developed independent deterministic and probabilistic reserves assessments for these prospects in accordance with the PRMS standard. These prospects are significant clastic structures in Kazakhstan sector of the Caspian Sea.Developed fully integrated geological and reservoir simulation models for the prospects – 6 in total. The work included full assessment and interpretation of an extensive 3D seismic data set shot over a license area , development of a static geological model and a dynamic reservoir model. Carried our modelling to determine optimum production configuration for the prospects through consideration of water injection and gas injection schemes. Also carried out conceptual field development planning to determine the associated surface production scheme.
Prepared resource certification statements in accordance the PRMS standard and in accordance with regulations set down by Kazakhstan’s State Reserves Committee.
Around 4 years after our first assessment on this giant onshore carbonate field in Kazakhstan and following the implementation of further exploration activities including shooting of an extensive 3D data set and drilling of Deep wells carried out an independent deterministic and probabilistic reserves redetermination.Developed a fully integrated geological and reservoir simulation model for the field. The work included full assessment and interpretation of a 3D seismic data set, development of a static geological model and a dynamic reservoir model. Carried out modelling to determine optimum configuration for a gas re-injection scheme. Also carried out conceptual field development planning to determine the associated surface production scheme.
Special features considered included: fracture modelling and prediction to determine potential contribution to reserves; interpretation of well logs from deep well drilling to the basement of the field.Prepared reserves certification statements in accordance the PRMS standard and in accordance with regulations set down by Kazakhstan’s State Reserves Committee.
Developed a Competent Person Report for two onshore exploration blocks in the Democratic Republic of Congo in accordance with the PRMS standard and regulations set down by the Johannesburg Stock Exchange (JSH). The work also included a valuation of the blocks based on cost estimates established using our using our NETCO$TER cost Evaluation Software.
Contracted to conduct an assessment of seismic data available for this large offshore block in Ghana. Assessed all available data, selected and supervised the reprocessing of key lines. Generated play concepts through basin studies. Identified prospects and leads through seismic interpretation and developed independent probabilistic resource assessment in accordance with the PRMS standard. Also carried out a valuation of the block for potential equity sale by the Client.
Contracted to conduct an evaluaton of the potential reserves for a license area within the Congo's section of the Albertine Basin. Conducted the evaluation based on a regional geological assessment. Developed a valuation of the property. Went on to assist the client in establishing a Production Sharing Agreement for the license area with the host government.
Developed an independent resource and reserve assessment for the fields and prospects in this Block in Kazakhstan to PRMS standards. Also prepared valuation of the property for a potential acquisition of equity by the client.The license included a number of small fields along with shallow and deep lying prospects identified through seismic interpretation. The valuation was developed based on independent cost estimates developed using our netco$ter cost estimating software.
Developed independent deterministic and probabilistic reserves assessments for this field in accordance with the PRMS standard. This field is a giant carbonate structure with significant quantities of highly sour gas (33.5% H2S and 9.6% CO2).
Developed integrated geological and reservoir simulation model for the field. The work included full assessment and interpretation of a 3D seismic data set, development of a static geological model and a dynamic reservoir model. Carried out modelling to determine optimum configuration through consideration of acid gas injection, desulphurisation and power generation alternatives. Also carried out conceptual field development planning to determine the associated surface production scheme. Used our NETCO$TER cost Evaluation Software to prepare detailed development and operating costs
Special features considered included: potential disposal of separated sour gas into the host reservoir and through enhanced recovery schemes in associated independent reservoirs; design of equipment to handle highly toxic hydrogen sulphide concentrations; impact of high hydrogen sulphide levels on gas physical properties.
Prepared a reserves certification statements in accordance the PRMS standard.
Developed independent probabilistic reserves assessment for these fields in the Ukraine in accordance with the PRMS standard. Also carried out a valuation of the field for potential equity purchase of part of the fields by the Client. The project included working with Soviet era data whilst developing a consistent geological and reservoir engineering assessment.
Developed independent probabilistic resources assessment for this onshore block in Nigeria in accordance with the PRMS standard. Also carried out a valuation of the block for potential equity sale by the Client. The valuation was based on an outline field development planning assessment conducted on the likely outcomes of a proposed exploration drilling campaign.
Carried out a review of a major revision to the plan to develop a giant onshore gas condensate field development plan to assess:
Performed a reserves verification and carried out a valuation for this offshore field in Nigeria. Carried out the verification to the standards set by the PRMS. The valuation was carried out following a field development planning assessment designed to establish the optimal modifications and in-fill drilling required to fully develop the property. Development and operating cost estimates were generated as the basis for the valuation.
Provided economic support to the Client during negotiation of participation in offshore exploration blocks with the Seychelles Government. Evaluated a number of prospective fields and developed cost estimates for their exploration, appraisal, development, operation and abandonment. Tested a range of commercial terms to establish terms optimum for the Client. Assisted the Client during the negotiation process in reaching mutually acceptable commercial terms with the Government
Performed a reserves verification and carried out a valuation for this onshore field in Nigeria. Carried out the verification to the standards set by the PRMS. The valuation was carried out following a field development planning assessment designed to establish the optimal production facility and drilling campaign required to fully develop the property. Development and operating cost estimates were generated using our NETCO$TER cost Evaluation Software.
Developed independent deterministic and probabilistic reserves assessments for this giant field in Kazakhstan accordance with the PRMS standard. This field is a super giant carbonate structure that is significantly overpressured
Developed a fully integrated geological and reservoir simulation model for the field. The work included full assessment and interpretation of a 2D seismic data set, development of a static geological model and a dynamic reservoir model. Carried our modelling to determine optimum configuration for a gas re-injection scheme. Also carried out conceptual field development planning to determine the associated surface production scheme.
Special features considered included: fracture modelling and prediction to determine potential contribution to reserves; analysis of Soviet era well tests, well logs and seismic data
Prepared reserves certification statements in accordance the PRMS standard and in accordance with regulations set down by Kazakhstan’s State Reserves Committee.
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