Oil and Gas ConsultancyOil and Gas Consultancy
We undertake a wide variety of reservoir engineering studies though our primary focus tends to be the development of production schemes, reserves assessments and production profiles as the basis for either reserves determinations or field development planning. Such determinations involve the analysis of reservoir fluid data, well performance and history matching; should the field have already been produced. We use the Eclipse simulation suite as our primary software tool in such studies - see below for more detail.
For a resource determination the standard we tend to adopt is Petroleum Resources Management System(PRMS) which is endorsed by the SPE, AAPEG, WPC and SPEE. This standard is increasing being accepted as the norm for oil and gas resource assessment be that for field development planning, raising finance, company valuations or resource statements, or as the basis for selling or acquiring assets.
The term resources in the PRMS system covers both "undiscovered" resources and "discovered" reserves. Reserves are classified as proven (P1), probable (P2) and Possible (P3) and resources are classified as contingent or prospective.
We also have significant experience of the resource classification system used in the countries of the Former Soviet Union; this follows principles established during the Soviet Era but is still widely used in these countries. Resources are classified as A,B,C1,C2,C3 and D under this system.
We also perform determinations to a variety of codes and regulations including those issued by the Securities and Exchange Commmision (SEC), Russian Standards (those adopted by the countries in the Former Soviet Union) and the rules set by various stock exchanges around the world including the Toronto Stock Exchange (TSX), London Stock Exchange (LSE), Johannesburg Stock Exchange (JSE) and Alternative Investment Market (AIM).
Services we offer as a company and via our Reservoir Engineering group include:
The primary tool we use for reservoir engineering is the Eclipse simulation suite; we have licenses for both:
Typically these are used in conjunction with a geological modelling tool such as IRAP RMS or Petrel in which the rock matrix or grid is established. This grid is then imported into Eclipse and used as the basis for establishing a dynamic reservoir model which in turn is used to determine optimum well configurations, production schemes, drilling schedules, production profiles and other key features of a development.
Whilst fully versed in the Elipse 100 black oil reservoir modelling tool we have particular expertise. in using Eclipse 300 for modelling:
Our modelling is conducted on 64 bit Dell Precision Workstations to minimise computing time and to enable rapid assessment of optimal configurations.
The projects below required reservoir engineering 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.
Updated an integrated reservoir model developed previously for the Client for this offshore oil field in thePolish sector of the Baltic see. The original model used an Eclipse compositional simulator as its basis. Converted the original integrated model to a Black Oil model, history matched past production including production that had been experienced since the development of the original model.
Once the new model was established went on the model a number of production alternatives to advise the Client if his proposed early production scenario was feasible. Also determined if early production would have a detrimental effect on ultimate recovery from the field.
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.
Carried out reserves verification for a number of non-associated gas properties in Poland to be used as collateral for project finance.The verification was carried out in accordance with the rules set by the PRMS Standard. Used Material Balance and Volumetric analysis to verify detailed 1P, 2P and 3P reserves assessment developed by others. Provided opinion on the veracity of the independent reserves report and its suitabilility as the basis for defining loan collateral.
Acted as Independent Consultant during the Client’s development of financing solutions to fund future operations. During execution of the work performed a number of services:
Assisted the Client in marketing the project to a number of potential farminees and loan providers.
Carried out a verification assessment on a reserves report used partly as the basis funding development of a North Sea non-associated gas in the UKCS. Implemented material balance analysis on available data to verify 1P and 2P reserves. Reviewed key production risks especially the potential for water break through and the ability of production equipment to handle it.
Went on to develop a revised development plan for the field designed to access untapped resources. Assessed the increase in 1P and 2P reserves that would result from development, fully costed the additional drilling and production equipment required . Conducted a risk assessment on the revised plan and established Chance of Success.
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.
Carried out a reserves verification on a portfolio of gas condensate and non-associated gas properties in Hungary. Carried out performance evaluations on a number of wells; used decline analysis to confirm 1P estimates of recoverable hydrocarbons made by another firm. Provided opinion on the veracity of the independent reserves report and its suitabilility as the basis for providing finance.
Carried out a reserves verification to PRMS standards as part of a technical due diligence assessment of this complex gas condensate field complete with oil rim located in the Norwegian sector of the North Sea. Also carried out a risk assessment on well performance, project schedule and project costs. Advised the client on technical risks associated with the project and the banking case profiles that should be adopted.
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.
Carried out a prospectivity study on Iraq Sedimentary Basins: Zagros Fold Belt, Mesopotamian and Western and Southwestern Deserts. The study was designed to assess potential upsides in existing field through assessing oil potential in non-drilled reservoir bearing horizons and potential field extensions. The study also assess prospective structures in each basin based on scouting information, third party regional interpretations and contour maps developed by Bayphase.
Used Boston square analysis the rank the fields and prospects against a range of parameters. The analysis was used by the Client as part of his decision making process in developing an engagement strategy for Iraq. Carried out a preliminary and detailed reserves certification and valuation for a small oil field in Kazakhstan’s Pre-Caspian basin. Developed a seismic interpretation and used available well log and test data to develop a reserves determination to PRMS standard.The Certification was used as part of an investment funding process designed to establish funds for development of the field and to carryout further exploration of the license area. Also developed an exploration plan for further evaluation of the license area including deep pre-salt carbonate structures.
Carried an analysis of international Oil and Gas Mega-projects for a National Oil Company. The work sought to establish how government bodies particularly national oil companies interacted with international oil companies carrying out very large projects in their countries. The work focused on establishing:
• How government bodies organised themselves with respect to such projects
• The procedures and strategies adopted by government entities in controlling such projects
• The relative performance of such projects in various area around the world.
The work focused on four geographic regions: Western Europe, Middle East, South America and South East Asia
Formed an integrated geophysics, geology, reservoir engineering and economics team for the Client during the development of a free standing Exploration and Production (E&P) group in the company. Carried out extensive technical consultancy associated with key E&P operations including:
• Assessment of license areas during government bid rounds and the preparation of technical and commercial bids.
• Attendance at data rooms including technical and economic analysis of potential acquisition targets along with preparation of technical and commercial bids and participation in negotiations.
• Detailed assessment of acquired license areas from a geophysical and geological aspect. Analysis of available seismic, well and regional geological data.
• Planning of seismic acquisition campaigns either as infill seismic or Greenfield. Supervision of campaigns and the processing of acquired seismic data. Reprocessing of available seismic data.
• Field assessment to establish reserves in accordance with the PRMS system and conceptual field development plans.
Presented plans for all stages of the work to the company’s management seeking approval through an Approval For Expenditure system. The work was focused primarily both onshore and offshore in a Central European belt stretching from the North Sea through to Black Sea; also covered other areas including North Africa.
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.
Carried out a technical assessment of revisions to the field development plan proposed for this turbidite field offshore Ivory Coast in water depths greater than 1,500m. Critically assessed well design and sand screening solutions in light of well failures. Established financing basis through the determination of banking case profiles.
Developed independent probabilistic resources and reserves assessment for the fields and prospects in this offshore block in Nigeria in accordance with the PRMS standard. Assessed extensions that would be required nearby production facilities to optimally develop the reserves; executed an outline field development planning assessment to achieve this. The reserves audit was used as part of the company’s submission to the US Securities and Exchange Commission during its listing process.
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.
Carried out a study to establish to optimum field development plan for a number of prospect outcomes in this deep water license bock – offshore Oman. Reviewed both oil and non-associated gas potential outcomes, developed outline Field Development Plans and carried out economic assessments to determine the optimum configuration.
The exploration prognosis was that outcomes could range from small to medium sized oil fields through to medium sized non-associated gas fields. Developed range of potential reserves and then established viable field development plans for each reserve size. Prospects were sited close to shore in 3,000m water depth; fully costed each development plan using Bayphase's cost estimating tool - NetCo$ter.
Developed the formal submission to the government of Oman.
Developed a reserves assessment in line with the PRMS standard and outline field development plans for two onshore non-associated gas fields in Nigeria. The work also included a full capital and operating cost assessment developed using our NETCO$TER cost Evaluation Software.
Provided technical support to a the Bank acting as part of a consortium providing refinancing to an E&P company active in the UK sector of the North Sea. Assessed production and other data from a producing field and two undeveloped fields that formed the re-financing collateral.Performed Independent reserves determinations and assessments of production forecasts to ensure that a solid collateral basis had been established. Identified the key technical risks associated with the reserves assessments and production operations; advised on contingencies to be considered in the refinancing.
Developed reserves verification for several fields located in the UKCS in accordance with the PRMS standard and based on reserves reports submitted by other consultants. Also prepared bank case production profiles which were used in valuing the properties for financing purposes.
Carried out an assessment of each of Libya’s Sedimentary Basins to establish hydrocarbon reserves and resource inventories for all fields and identified prospects in these basins. The study was based on data collected from producing fields, regional seismic assessments, and regional geological studies.
The basins covered by the study included: Sirte, Ghadames, Murzuk, Offshore/Tripolitania, Cyrenica, Kufra.
Developed a reserves verification for this gas condensate field located in Russia in accordance with the PRMS standard and based on reserves reports submitted by other consultants. Also prepared bank case production profiles which were used in valuing the property for financing purposes. Reviewed and critiqued: reserves report, information memoranda, Competent Person Reports and other information forming the technical basis for the loan.
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.
Developed an independent probabilistic reserves assessment for this field in western Siberia (Russia) in accordance with the PRMS standard. Also prepared bank case production profiles which were used in valuing the property for financing purposes.
Developed a reserves verification for these fields located in Nigeria in accordance with the PRMS standard and based on reserves reports submitted by other consultants. Also prepared bank case production profiles which were used in valuing the property for financing purposes. The work included vetting the owner’s field development plan for cost and schedule risk; an itemisation of the risks and their potential cost/financial impact was developed.
Around 3 years after our first assessment on this field 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 for this offshore Giant Carbonate field in Kazkahstan.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 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 field’s basement.Prepared reserves certification statements in accordance the PRMS standard and in accordance with regulations set down by Kazakhstan’s State Reserves Committee.
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 a Petroleum Expert Witness report and acted as an expert witness during arbitration proceeding with respect to a disputed unitisation claim affecting two adjacent licenses onshore western Siberia. As pert of the work made a retrospective assessment of reserves as the basis for testing the compensation claim of one of the parties to the dispute.
Developed independent deterministic and probabilistic reserves assessments for this field in accordance with the PRMS standard. This field is a super giant carbonate structure that is significantly overpressured.
Developed 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; technical feasibility of sour gas injection in a significantly overpressured reservoir
Prepared reserves certification statements in accordance the PRMS standard and in accordance with regulations set down by Kazakhstan’s State Reserves Committee.
Developed a petroleum expert witness report as part of a dispute centred on conflicting claims over production practices adopted and schedule delays associated with a redevelopment of these fields in Azerbaijan.
These two medium sized onshore oil fields, developed in soviet times but taken over by western investors. The report included an independent assessment of reserves, production profile and levels of investment required to develop the fields to their full potential. The assessment was based on a detailed review of production and other data gathered in Soviet times up to the time of the dispute.
Carried out a review of a major revision to the plan to develop a giant onshore gas condensate field development plan to assess:
Developed a field development plan for this field in Kazakhstan which contained heavy very viscous oil. The reservoirs associated with the field are shallow lying and are primarily shallow marine sandstones.
This included a geological, and reservoir engineering assessment to determine the optimum production method and the producible reserves associated with the field. Fully developed a field development plan for a scheme utilising steam injection on a 5 spot pattern to produce the field.
As part of the work developed a reservoir model and a full subsurface and surface development plan, generated development and operating costs using our NETCO$TER cost Evaluation Software also carried out a valuation.
The assessment was used by the expert witness for the defence under a claim pursued under UNCITRAL rules at the Arbitration Institute of the Stockholm Chamber of Commerce.
Carried out a survey and researched all licenses in Kurdistan. The purpose of the work was to establish companies active in the region, the prospectivity of their license areas, the license work commitments and their likely funding requirement over a two year time frame.The assessment was used to target small participant companies with acreage likely to be successfully explored and likely to require funding to meet their investment needs. Assisted the Client in making approaches to offer finance for equity to target companies ranked by this process.
Developed independent deterministic and probabilistic reserves assessments for this large gas condensate discovery in Kazakhstan’s sector of the Caspian Sea; the probabilistic assessment was developed in accordance with the PRMS standard. Also prepared outline field development plan and made an evaluation of appraisal, development and operating expenditures for an economic assessment .
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.
Developed the field development plan for next phase of development of these two giant fields. Plan was developed in conjunction with the Clients senior personnel and for two timescales long term 5-year forecast and short term 1 year forecast. Developed annual budgets for all capital operating expenditures for the field over a two year period – current year and the following year. Cost estimates were based on evaluations performed independently by our consultants.
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.
Carried out a screening study for an exploration license in a deep water section of Tonga’s territorial waters. A range of potential prospective oil field sizes were evaluated ranging from 30-150 million barrels recoverable. A database of onshore well logs was used to develop potential properties for the offshore prospects. The study’s key objective was to establish if economic solutions could be established for development of these relatively small prospective fields. In addition detailed planning and cost assessments were carried out on the planned exploration drilling. Exploration, appraisal, development and operating cost estimates were generated using our NETCO$TER cost Evaluation Software.
Carried out a screening study for a newly discovered field onshore Libya in the Sirte basin. A range of potential prospective oil field sizes were evaluated ranging from 10-300 million barrels recoverable. The study’s key objective was to establish if economic solutions could be established for development of these relatively small recoveries at the lower end of the assessment. Development and operating cost estimates were generated using our NETCO$TER cost Evaluation Software.
Bayphase
Limited, St Georges House, Knoll Road, Camberley, Surrey, GU15 3SY, UK
Tel: +44 (0) 1276 682828 - Fax: +44 (0) 1276 63334
Oil & Gas Consultants - Prospect Evaluation - Reserves Assessment - Oil and Gas Reports - Oil and Gas Costs - Field Development Planning