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| Economics |
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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.
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| Economic Analysis |
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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.
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| Project Experience |
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The projects below required economics input.
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| Competent Person Report - Central Africa Licenses |
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Contracted to develop a Competent Person Report for a number of licenses located in Central Africa. The report was developed to AIM format and formed part of an acquisition process conducted by a Johanesburg Stock Exchange listed company. A full geophysical and geological assessment was conducted along with a valuation of the licenses based on the agreed commercial terms.
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| Investment Overview - Kazakhstan |
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Prepared an overview of the current oil and gas investment climate in Kazakhstan for a City investment house. Overview covered investment criteria for oil and gas propreties including allowed reserves, discount rates and data on recently executed deals in the country.
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| License Valuation - Albertine Basin |
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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.
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| Equity Farm-out - Offshore Ghana |
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Contracted to farm-out part of the equity in a highly prospective block in Ghana. Performed a pre-sale evaluation on the block including a reserves evaluation and a valuation based on the Petroleum Agreement terms. Went on to prepare and run the technical data room, receive and analyse bids and to assist in negotiations with selected bidders.
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| License Valuation - Kazakhstan |
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Contracted to conduct an evaluaton of fields and prospects for a license area within Kazakhstan for an investor condsidering farm-in options. Evaluated reserves potential within the block and the robustness of the owner's exploration, appraisal and development program. Provided an Independent Valuation of the the potential opportunity. Went on to conduct a full geophysical evaluation of the pre-salt strata associated with the property couple with an assessment of potential reserves.
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| UKCS Gas Fields - Development Plan |
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Commissioned to prepare an outline field development plan for a number of gas fields in the UK southern basin. The scope included developing an offshore network of platforms, subsea well heads and pipe lines for a gas system with an overall carbon dioxide content of 2%. Also developed an outline plan for an onshore reception and treatment terminal. The end product a fully costed set of plans was delivered to the client.
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| Screening Study Giant Sour Gas Fields |
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Conducted detailed screening study for two very large,heavily sour gas fields (30% H2S and 10% CO2) to determine the optimum development configuration. Reviewed acid gas injection, desulphurisation,acid gas power generation and selective treatment options from a technical and economic standpoint. Selected the technical economic optimum as the basis for a Field Development Plan.
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| Field Development Plan - Sour Gas Fields |
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Developed a Field Development Plan for two large sour gas fields (30% Hydrogen Sulphide and 10% Carbon Dioxide)as part of a license bid submission. The plan utilised all aspects of Bayphase's INTEGRATED team approach and include seismic interpretation and mapping, geological model development,reservoir modelling, facilities and process engineering assessments, cost estimating and finally economic assessment. Work included a full reassessment of reserves both on a probabalistic and deterministic basis
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| Gas Condensate Field Reserves Assessment and Valuation |
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Reviewed the available data for two gas condensate fields and developed an independent reserves assessment and asset valuation for a client interested in purchasing the property. Work included working with Soviet data and conducting geological, reservoir engineering and economic assessments
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| Equity Sale - Onshore License Area Block |
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Mandated to conduct a limited equity farm out for an onshore block in Nigeria. As part of the process conducted a full technical evaluation of the property, conducted a license valuation and carried out planning for an in-fill seismic data gathering project. The farm out was successfully completed in January 2008.
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| Offshore Morrocco Heavy Oil |
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Developed a preliminary field development plan a heavy oil accummulation offshore Morrocco at 80m water depth. The assessment considered production methods appropriate for this remote site and for a recoverable reserve of between 25 and 45 million bbls. The scheme also considered export options for the crude. A capital and operating cost estimate and schedule was developed which was used to assess the economic attractiveness of the opportunity.
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| Offshore Sour Oil Field - Libya |
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Developed a preliminary field assessment for an offshore prospect in Libya. The accummulation was thought to potentailly contain around 70 million bbls of oil but was potentially sour - upto 2% hydrogen sulphide. The assessment considered a number of methods to develop the field focussing particularly on the possible means of handling the highly sour associated gas which was expected to be produced. A number of capital and operating cost estimates and schedules were developed to assess the economic attractiveness of the opportunity.
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| UKCS Heavy Oil Development |
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Implemented a study considering the application of heavy oil extraction techniques developed in the UKCS to a giant field prospect situated. The study focussed on the latest techniques being adopted by operators in the North Sea for the development of heavy oil fields. The study's main focus was production - well design, transportation - use of oil water emulsions particularly - and productions - primarily oil separation and treatment. This work included assessing the economic benefit that would result through applying these techniques to a giant field containing oil of 20-22 API.
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| Privatisation - Regional Oil Company |
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Acted as technical and commerial advisor during the sale of 30% of a regional oil company in the Former Soviet Union. The units asset base included 1.25 billion barrels of proven reserves, upstream production plant, a refinery and oil transporation networks. Prepared sales documentation for the asset, sought out buyers and ultimately arranged disposal of the equity.
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| Outline Field Development - Onshore Angola |
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Developed an outline field development plan for a prospective onshore oil accummulation in southern Angola, in assumed swamp conditions. The assessment considered production methods appropriate for this remote site and for a recoverable reserve of between 25 and 45 million bbls. The scheme also considered exploration abd appraisal drilling options for the prospet. A capital and operating cost estimate and schedule was developed which was used to assess the economic attractiveness of the opportunity.
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| Market Study Oil Terminal |
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Provided an assessment of transportation costs and markets for an international bank assessing the robustness of a project designed to export crude oil and refined products from a terminal expansion loacted in Georgia. The assessment focused on investigating route and demand from potential clients in eastern Europe. It also established the availablity of crude oil and refined product supplies form a Caspian region hinterland including Georgia, Azerbaijan, Turkemenistan and Kazakhstan.
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| Market Assessment - Algeria |
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Conducted an assessment of all know major oil and gas developments in Algeria designed to assess the investment value associated with each and the timing of the associated expenditure. The work was conducted for a government body charged with assessing international markets for its oil and gas manufacturing and services sector.
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| Viability Assessment Major Pipe Line |
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Conducted an assessment of the economic viability of a major European crude oil pipeline, including a review of potential users and options for development. The study included assessing the potential to reverse flow in the line. The modifications required to achieve this along with their cost were assessed. An economic assessment was then conducted to assess the viability of making the changes.
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| Generic Study - UKCS Gas |
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Conducted a generic study designed to establish economic minimum recoverable reserves for stand-alone and tie-back developments in the Southern basin of the UKCS. The study considered a range of gas reserves from 10bscf through to 150bscf. It also considered a range of production methods including subsea wells and tie-backs, not-normally manned platforms and a range of full production facilities including comprssion for later life exploitation.
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| Type IV Cost Estimate - Ultra Deep Offshore Prospect |
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Developed a Type IV cost estimate for an ultra deep water oil prospect offshore Sierra Leone.he assessment considered production methods appropriate for this remote and ultradeep water site - 1,800m - and for a recoverable reserve of between 250 and 750 million bbls. The scheme also considered exploration abd appraisal drilling options for the prospet. A capital and operating cost estimate and schedule was developed which was used to assess the economic attractiveness of the opportunity.
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| Reserves Evaluation Dawes Island |
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Conducted a technical reserves evaluation on this field which was due to be licensed as part of NIgeria's marginal field round. Analysed available 2D seismic and well data to develop a deterministic reserves estimate. Also generated outline field development plan and valued the field. Went on to submit formal bid to receive the license to the the Nigerian government on behalf of the client.
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| Master Plan Giant Offshore Fields |
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Assisted the Client in developing a master plan for two giant offshore fields. Work included establishing a full inventory of all existing surface facilities, planning future additions and expansion and developing budgets. The plan considered multiple time frames for development of the fields short term (1-2years), medium term (3-5 years) and Long Term (5-35years). Established a field master planning system designed to be executed annually to give senior management a coherent view of the fields' future.
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