SURFACE FACILITIES FOR OILFIELDS IN THE SOUTH AUSTRALIAN SECTOR OF THE COOPER BASIN

1986 ◽  
Vol 26 (1) ◽  
pp. 470
Author(s):  
R.J. Scanlan ◽  
C.J. White

Delhi Petroleum Pty Ltd, as operator, has been responsible for the development of eight oilfields in the South Australian sector of the Cooper Basin since 1982. Some of these field developments are economically marginal, hence the need to optimise those aspects of the facilities which impact on the ongoing cost of production and the overall profitability. A phased development approach has evolved over the past three years to reduce the external financing requirements and to improve the certainty of the data used to define the key elements of each project.For the successful completion of the project a task force approach to project management is utilised, supported by the use of computerised project planning and control systems. Further, it is important to define and agree on the design criteria and philosophy for the project at the commencement, this providing a base by which to measure scope changes, and so that all concerned are working to a common goal.The use of economic analysis as a decision-making tool during all phases of the project assists the project team to home in on the key objective which is to maximise the project net present value. Comparative economics and sensitivity analysis are used at the conceptual stage to select the preferred development option, e.g. pipeline versus trucking.The design of surface facilities is dictated by a wide range of criteria including the above development philosophy. The variable nature of these criteria demonstrates that each new field development must normally be engineered individually to ensure the target of maximum net present value can be achieved.The Gidgealpa Crude Oil Development Project demonstrates the effectiveness of the above methodology and philosophies. The field was discovered in August 1984, and early production and trucking of oil commenced in January 1985 with 374 000 bbls produced prior to commissioning of the pipeline to Moomba in September 1985.

Author(s):  
Beverley F. Ronalds

The cycle time to first production is a primary determinant of the net present value (NPV) of an oil and gas asset. The cost, complexity and risk inherent in deepwater field developments, combined with the relative lack of experience in their execution, often encourages engineers to proceed cautiously in field development. However, a successful fast-track development schedule from discovery to first oil may bring significantly better economic returns. This paper investigates the key parameters influencing cycle time for different facility types, and outlines a wide range of measures that may be adopted to accelerate the time to first production.


2019 ◽  
Vol 19 (2) ◽  
pp. 61-70
Author(s):  
Pandi Aditiya ◽  
Ahmad Herison ◽  
Ika Kustiani ◽  
Amril Ma’ruf Siregar

The increasing demand for port services at the Panjang port causes high levels of ship queues. The solution to overcome this problem is to build a new port. However, this new port construction project has not yet conducted a feasibility study. The purpose of this study is to assess the feasibility of port development in the Panjang district of Bandar Lampung in terms of investment or financial aspects. The methods are Benefit-Cost Ratio, Net Present Value, Payback Period, and Internal Rate of Return. The results of the feasibility study of the most profitable investment are in the seventh scenario, the Net Present Value (NPV) of Rp. 463,292,122,605.34, the BCR result of 1.2959, the IRR yield of 12.11% and the Payback Period (PP) occur in the year to thirty-seventh with an economic age of 60 years. The conclusion is that the construction of a new port can be a solution to overcome the overload of Panjang port.


1992 ◽  
Vol 114 (3) ◽  
pp. 165-174 ◽  
Author(s):  
E. M. Bitner-Gregersen ◽  
J. Lereim ◽  
I. Monnier ◽  
R. Skjong

A quantitative analysis of economic risk associated with large investments in offshore oil and gas field development and production is presented. The analysis is intended as a supporting tool in decision-making faced with uncertainty and risk, to study the effect of alternative decisions in an easy manner. The descriptors for the project assessment, such as the Internal Rate of Return (IRR) and Net Present Value (NPV) are applied. The study demonstrates first the impacts of early pilot production (EPP) prior to a main oil field development on the field economy of an oil field development and production installation. Furthermore, the result of cases which reflect relevant situations connected with cost overruns are presented, as well as derivation of rational decision criteria for termination/continuation of a project subjected to cost overruns. Finally, an oil field development project scheduling is demonstrated.


2000 ◽  
Vol 40 (1) ◽  
pp. 546
Author(s):  
J.J. Hebberger Jr. ◽  
S.P. Franklin ◽  
W.H. Uberawa ◽  
A.M.Pytte

Iagifu-Hedinia oil field was discovered in 1986 in the remote Highlands of PNG following a multi-year exploration effort. Exploration and subsequent field development of PNG's first petroleum export project were carried out without the aid of seismic data due primarily to the intense karst development in the area. Because of historically low oil prices and the remote and difficult environment, the decision to develop the field did not occur until late 1990. First oil was produced in June 1992, with successful development dependent upon an intense focus on cost management, land owner and government relations, and most critically an early commitment to active reservoir management by an empowered and multi-disciplinary reservoir management team (MDRM team). This MDRM team added as much as an incremental 70 MMBBL oil and US$240 million of net present value to the project. This resulted from its being given responsibility for reservoir characterisation, reserve estimation, economic analysis, and active reservoir management. At its core the team consisted of both petroleum engineers and earth scientists, but incorporated numerous other disciplines as they were needed. Key to this success was the support and endorsement of management to a truly empowered team.


2021 ◽  
Vol 12 (1) ◽  
pp. 124
Author(s):  
Tadeusz Kasprowicz ◽  
Anna Starczyk-Kołbyk ◽  
Robert Wójcik

Randomized estimation of the net present value of a housing development allows for the assessment of the efficiency of projects in random implementation conditions. The efficiency of a project is estimated on the basis of primary input data, usually used in project planning. For this purpose, random disturbances are identified that may randomly affect the course and results of the project. The probability and severity of disturbances are determined. The primary initial data is then randomized, and a randomized probabilistic index of the project’s net present value is calculated, the value of which indicates whether the project is profitable or whether implementation should be stopped. Based on this data, the expected total revenue, the expected total cost, the expected gross profit, and the net present value of the randomized performance of the project are calculated. The values of these are estimated for expected, favorable, and unfavorable conditions of implementation. Finally, the risks for the total revenue and total cost of the project are calculated and plotted for comparative revenue values in the range [1, 0] and cost in the range [0, 1]. Their analysis makes it possible to make the right investment decisions before starting the investment at the preparation stage.


2002 ◽  
Vol 1 (2) ◽  
Author(s):  
Yvan J. Túpac ◽  
Marley Maria B.R. Vellasco ◽  
Marco Aurélio C. Pacheco

This paper presents a Genetic Algorithm application for selecting the best alternative for oil field development under certainty. The alternatives in this study are related to the arrangement of wells in a known and delimited oil reservoir and serve as a basis for calculating the net present value, which is used to assess the optimization process: the optimal alternative is the one that maximizes the Net Present Value of the field. The results obtained have revealed that the Genetic Algorithm model was able to find good alternatives for the oil field development, achieving good results for the Net Present Value.


2021 ◽  
pp. 1-18
Author(s):  
M. K. Almedallah ◽  
S. Clark ◽  
S. D. C. Walsh

Summary Cost and schedule overruns are endemic problems for offshore oil projects. This can be partly attributed to weather delays, resource limitations, and scheduling risks. The problem is further compounded because of the large number of interdependent activities, such as drilling and platform installation, typically involved in the buildup period of oilfield development. As a result, there is a pressing need to find robust project planning and scheduling models that consider these interacting components and associated risks in offshore oil projects. This study considers three techniques to optimize offshore oil project schedules while accounting for the impact of numerous field activities and potential delay factors; these are mixed-integer linear programming (MILP), single-objective genetic algorithms (SOGAs), and nondominated sorting genetic algorithms (NSGA-II). The study compares the performance of each using a model that integrates field planning with scheduling while accounting for weather delays, resource limitations, and simultaneous operations (SIMOPS; i.e., the ability to conduct more than one activity at once). The first two techniques (MILP and SOGA) optimize the oilfield schedule based on a single objective, which is to maximize net present value (NPV) or minimize project time. However, the maximum NPV schedule may result in a longer project time, whereas the shortest project time may result in a lower NPV. Therefore, the third method using NSGA-II finds Pareto-optimal schedules that balance these competing objectives. Four case studies are provided to compare the MILP and SOGA approaches with the suggested multiobjective NSGA-II.


1968 ◽  
Vol 94 (3) ◽  
pp. 355-378 ◽  
Author(s):  
S. D. Hodges ◽  
P. G. Moore

This paper is concerned with attempts that have been made to incorporate measures of risk in the selection of financial investments. The methodology that is developed here has been primarily aimed at the evaluation of capital investment projects, but the concepts and ideas are also relevant in the financial investment field. Implicit in all this discussion is the fact that when information is obtained in order to calculate an internal rate of return or a net present value, the figures put into the calculation are estimates rather than precise and exact quantities. In some instances the estimates may be felt to be very good, whilst in other cases it may be felt that there is a wide range of possible deviations. Hence the evaluation of any project or projects should, correctly, be described not by a single criterion but by a range of possible values, some of which are judged to be more likely than others. Having said this, there now comes the need to decide upon the method by which choice is to be exercised. Should it be by the choice of the highest average value of the criterion, or by choosing some more conservative rule?


2002 ◽  
Vol 1 (2) ◽  
pp. 51 ◽  
Author(s):  
Yvan J. Túpac ◽  
Marley Maria B.R. Vellasco ◽  
Marco Aurélio C. Pacheco

This paper presents a Genetic Algorithm application for selecting the best alternative for oil field development under certainty. The alternatives in this study are related to the arrangement of wells in a known and delimited oil reservoir and serve as a basis for calculating the net present value, which is used to assess the optimization process: the optimal alternative is the one that maximizes the Net Present Value of the field. The results obtained have revealed that the Genetic Algorithm model was able to find good alternatives for the oil field development, achieving good results for the Net Present Value.


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