MPEP Scorecard: A New Quantitative Approach to Measure Project's Maturity in Medco EP Indonesia

2021 ◽  
Author(s):  
P. T. Kusumo
Keyword(s):  
Oil And Gas ◽  
Volatile Oil ◽  
Investment Strategy ◽  
Senior Management ◽  
Oil Price ◽  
Quantitative Approach ◽  
Limited Resources ◽  
Capital Projects ◽  
Specialized Team ◽  
Marginal Field

Oil & gas companies in Indonesia continue to struggle in executing their projects due to highly volatile oil price, lower demand and marginal field developments. Consequently, these companies need to be as prudent as possible in investing their limited resources to the selected projects in their portfolio. In order to face this challenge, MedcoEnergi developed a tool called Medco Project Excellence Process (MPEP) Scorecard to effectively measure the maturity of all of its major projects using a quantitative approach. The application of this tool can greatly help MedcoEnergi in deciding which projects to execute or which projects to hold, and therefore enabled the company to maximize its returns from its oil and gas projects portfolio. The paper presents the design of the MPEP Scorecard and how the tool is applied. The application of the tool is integrated with the gate review which is held when the project wants to proceed to its next stage. The project assurance committee which is a specialized team consist of experts from engineering, subsurface, drilling, commercial, etc., will review the projects deliverables during this gate review and the tool will allow them to assign a “score” based on their assessment and their discussion with the project team. There will be an individual score for each discipline and these scores will be used as inputs to calculate a single (overall) score that can accurately represents the project’s maturity. Currently, MPEP Scorecard has already been applied to the major capital projects in MedcoEnergi and the results have been presented to the senior management. Based on their feedbacks, it is agreed that the tool can give a much clearer picture on the project’s current condition, significantly help them in making the go/no go decision and enables them to create the most optimum investment strategy.

Managing Oil and Gas Project Value By Prime (Pertamina Investment Management Engine)

2020 ◽  
Author(s):  
F. Febrian
Keyword(s):  
Portfolio Management ◽  
Corporate Strategy ◽  
Oil And Gas ◽  
Investment Strategy ◽  
Project Portfolio ◽  
Action Plans ◽  
Investment Management ◽  
Micro Scale ◽  
Robust Portfolio ◽  
Oil And Gas Companies

Oil and gas companies are facing an enormous challenge to create value from mature fields. Moreover, price volatility presents a massive impact on project uncertainties. Therefore, robust portfolio management is essential for oil and gas companies to manage critical challenges and uncertainties. The objective of this study is to develop a robust portfolio model to assist top management in oil and gas companies to drive investment strategy. PRIME (Pertamina Investment Management Engine) has been built to visualize advanced oil and gas project portfolio management. The engine observes the relationship between risk-and-return as the main framework drivers. The profitability index is endorsed as a parameter to envisage the investment effectiveness of individual projects. Correspondingly, the risk index is a manifestation of multi-variable analysis involving subsurface uncertainty and price. A nine clusters "tactical board" matrix is provided as the outcome of PRIME to define generic strategy & action plans. The PRIME analysis leads to a dual theme of perspective: both macro and micro-scale. The macro-scale discovers a diversification of strategy and scenario development to achieve long-term objectives. Whereas, micro-scale perspective generates a detailed action plan in a particular cluster as a representation of the short and mid-term corporate strategy. Several strategies and action plans have been recommended, including advanced technology implementation, new gas commercialization, additional incentives in the Production Sharing Contract, tax management renegotiation, and project portfolio rebalancing

The Impact of Oil Price Fluctuations on Industry Stock Returns: Evidence from International Markets

2018 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Elias Randjbaran ◽  
Reza Tahmoorespour ◽  
Marjan Rezvani ◽  
Meysam Safari
Keyword(s):  
Stock Returns ◽  
Oil And Gas ◽  
Negative Relationship ◽  
The United States ◽  
Oil Price ◽  
Price Variation ◽  
Price Changes ◽  
Price Fluctuations ◽  
Food And Beverage ◽  
The Impact

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

Determination of Bubble-Point and Dew-Point Pressure Without a Visual Cell

2014 ◽  
Author(s):  
R.. Hosein ◽  
R.. Mayrhoo ◽  
W. D. McCain
Keyword(s):  
Oil And Gas ◽  
Saturation Pressure ◽  
Volatile Oil ◽  
Phase Region ◽  
Gas Condensate ◽  
Dew Point ◽  
Bubble Point ◽  
Point Pressure ◽  
Dew Point Pressure

Abstract Bubble-point and dew-point pressures of oil and gas condensate reservoir fluids are used for planning the production profile of these reservoirs. Usually the best method for determination of these saturation pressures is by visual observation when a Constant Mass Expansion (CME) test is performed on a sample in a high pressure cell fitted with a glass window. In this test the cell pressure is reduced in steps and the pressure at which the first sign of gas bubbles is observed is recorded as bubble-point pressure for the oil samples and the first sign of liquid droplets is recorded as the dew-point pressure for the gas condensate samples. The experimental determination of saturation pressure especially for volatile oil and gas condensate require many small pressure reduction steps which make the observation method tedious, time consuming and expensive. In this study we have extended the Y-function which is often used to smooth out CME data for black oils below the bubble-point to determine saturation pressure of reservoir fluids. We started from the initial measured pressure and volume and by plotting log of the extended Y function which we call the YEXT function, with the corresponding pressure, two straight lines were obtained; one in the single phase region and the other in the two phase region. The point at which these two lines intersect is the saturation pressure. The differences between the saturation pressures determined by our proposed YEXT function method and the observation method was less than ± 4.0 % for the gas condensate, black oil and volatile oil samples studied. This extension of the Y function to determine dew-point and bubble-point pressures was not found elsewhere in the open literature. With this graphical method the determination of saturation pressures is less tedious and time consuming and expensive windowed cells are not required.

Agile framework for capital projects

2021 ◽  
Vol 61 (2) ◽  
pp. 422
Author(s):  
Polly Mahapatra ◽  
Paris Shahriari
Keyword(s):  
Oil And Gas ◽  
Hybrid Approach ◽  
Oil And Gas Industry ◽  
Quick Response ◽  
Capital Projects ◽  
Gas Industry ◽  
Response To Change ◽  
The Cost ◽  
Early Phases ◽  
The Ideal

Under the increased pressure of rapidly changing market conditions and disrupting technologies, continuous improvements in efficiency become indispensable for all oil and gas operators. Traditional project management principles in the oil and gas industry employ rigid methods of planning and execution that can sometimes hinder adaptability and a quick response to change. Considering the potential that Agile principles can offer as a solution, the challenge, therefore, is to identify the ideal, hybrid, approach that leverages Agile while incorporating the traditional linear workflow necessitated by the oil and gas industry. This paper seeks to assess pre-existing literature in the application of the Agile principles in the oil and gas industry with a focus on Major Capital Projects (MCPs), backed by the successes experienced as a result of specific pilot projects completed at Chevron’s Australian Business Unit. In particular, this paper will focus on how agility has resulted in improvements to the cost, schedule, teaming and cohesion of MCPs in the early phases as well as key learnings form the pilot agility projects.

Achieving Indonesian Oil and Gas production to 1 million barrels per day by 2030 using Nanoflooding as Novel EOR Method: Dream vs. Reality

2021 ◽  
Author(s):  
L. Hendraningrat
Keyword(s):  
Oil Recovery ◽  
Cost Efficiency ◽  
Oil And Gas ◽  
Gas Production ◽  
Oil Price ◽  
Efficient Manner ◽  
Oil And Gas Production ◽  
Cost Efficient ◽  
Nano Size ◽  
Production Target

In low oil price environments, conducting affordable enhanced oil recovery (EOR) projects can be very challenging. One item of interest for successful future EOR should be in how produced fluids are treated and how to achieve cost-efficiency. Nanoflooding, is an emerging EOR technique, which has attracted deployment in recent years. Meanwhile, Indonesia continues to progress towards the national oil and gas production target of one million barrels per day by 2030. This paper presents the observation of opportunities and challenges of using nanoflooding to enable oil and gas production in Indonesia to achieve its desired targets. The study began by mapping the pain points in major oilfields in Indonesia. We observed and discussed the advantage and limitation of traditional mature EOR techniques, status, and ongoing application of EOR in Indonesia. Then, we briefly explained the main reasons why nanoflooding can be considered for future implementation in accelerating oil production in Indonesia, including a discussion about a successful pilot test. As an emerging EOR technique, nanoflooding can be considered as a cost-efficient technique. Silica-based nanofluid can be accessed in a cost-efficient manner and can be executed from an implementation standpoint considering surface facilities. The mechanism that is introduced can help to displace incremental oil more effectively since it can go inside pore throats due to the nano-size. We observed several recognized benefits and challenges to deploy nanoflooding in Indonesia. Based on this study, nanoflooding is very attractive and has potential to be implemented.

Technology Focus: Offshore Facilities (September 2021)

2021 ◽  
Vol 73 (09) ◽  
pp. 50-50
Author(s):  
Ardian Nengkoda
Keyword(s):  
Oil And Gas ◽  
Energy Transition ◽  
Oil Price ◽  
Low Carbon ◽  
The Past ◽  
Offshore Technology ◽  
Net Zero ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Low Carbon Energy

For this feature, I have had the pleasure of reviewing 122 papers submitted to SPE in the field of offshore facilities over the past year. Brent crude oil price finally has reached $75/bbl at the time of writing. So far, this oil price is the highest since before the COVID-19 pandemic, which is a good sign that demand is picking up. Oil and gas offshore projects also seem to be picking up; most offshore greenfield projects are dictated by economics and the price of oil. As predicted by some analysts, global oil consumption will continue to increase as the world’s economy recovers from the pandemic. A new trend has arisen, however, where, in addition to traditional economic screening, oil and gas investors look to environment, social, and governance considerations to value the prospects of a project and minimize financial risk from environmental and social issues. The oil price being around $75/bbl has not necessarily led to more-attractive offshore exploration and production (E&P) projects, even though the typical offshore breakeven price is in the range of $40–55/bbl. We must acknowledge the energy transition, while also acknowledging that oil and natural gas will continue to be essential to meeting the world’s energy needs for many years. At least five European oil and gas E&P companies have announced net-zero 2050 ambitions so far. According to Rystad Energy, continuous major investments in E&P still are needed to meet growing global oil and gas demand. For the past 2 years, the global investment in E&P project spending is limited to $200 billion, including offshore, so a situation might arise with reserve replacement becoming challenging while demand accelerates rapidly. Because of well productivity, operability challenges, and uncertainty, however, opening the choke valve or pipeline tap is not as easy as the public thinks, especially on aging facilities. On another note, the technology landscape is moving to emerging areas such as net-zero; decarbonization; carbon capture, use, and storage; renewables; hydrogen; novel geothermal solutions; and a circular carbon economy. Historically, however, the Offshore Technology Conference began proactively discussing renewables technology—such as wave, tidal, ocean thermal, and solar—in 1980. The remaining question, then, is how to balance the lack of capital expenditure spending during the pandemic and, to some extent, what the role of offshore is in the energy transition. Maximizing offshore oil and gas recovery is not enough anymore. In the short term, engaging the low-carbon energy transition as early as possible and leading efforts in decarbonization will become a strategic move. Leveraging our expertise in offshore infrastructure, supply chains, sea transportation, storage, and oil and gas market development to support low-carbon energy deployment in the energy transition will become vital. We have plenty of technical knowledge and skill to offer for offshore wind projects, for instance. The Hywind wind farm offshore Scotland is one example of a project that is using the same spar technology as typical offshore oil and gas infrastructure. Innovation, optimization, effective use of capital and operational expenditures, more-affordable offshore technology, and excellent project management, no doubt, also will become a new normal offshore. Recommended additional reading at OnePetro: www.onepetro.org. SPE 202911 - Harnessing Benefits of Integrated Asset Modeling for Bottleneck Management of Large Offshore Facilities in the Matured Giant Oil Field by Yukito Nomura, ADNOC, et al. OTC 30970 - Optimizing Deepwater Rig Operations With Advanced Remotely Operated Vehicle Technology by Bernard McCoy Jr., TechnipFMC, et al. OTC 31089 - From Basic Engineering to Ramp-Up: The New Successful Execution Approach for Commissioning in Brazil by Paulino Bruno Santos, Petrobras, et al.

Surviving the Low Oil Price Cycle While Increasing Production Through Best Practices in Workover and Drilling Operations; Case Study of a Marginal Field in Niger Delta, Nigeria

2018 ◽  
Author(s):  
Longfellow Oghale Atakele ◽  
Osahon Noruwa Airhis ◽  
Ntietemi Ekpo Etim ◽  
Fisayo Jordan Ipoola ◽  
John Osadebe Anim ◽  
...  
Keyword(s):  
Best Practices ◽  
Niger Delta ◽  
Oil Price ◽  
Drilling Operations ◽  
Marginal Field

scholarly journals Stress Distribution Analysis of DKDT Tubular Joint in a Minimum Offshore Structure

Rekayasa ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 191-199
Author(s):  
Irma Noviyanti ◽  
Rudi Walujo Prastianto ◽  
Murdjito Murdjito
Keyword(s):  
Finite Element ◽  
Stress Distribution ◽  
Axial Force ◽  
Oil And Gas ◽  
Bending Moment ◽  
Out Of Plane ◽  
Tubular Joint ◽  
Plane Bending ◽  
Intersection Line ◽  
Marginal Field

A marginal field defines as an oil and/or gas field that has a short production period, low proven reservoir, and could not be exploited using existing technology. As the demand for oil and gas keeps increasing, one of the solutions to tackle the issues is to build the modified platform which came to be more minimalist to conduct the oil and gas production in the marginal field. Naturally, the minimum offshore structures are cost less but low in redundancy, therefore, pose more risks. Although the study on the minimum structures is still uncommon, there are opportunities to find innovative systems that need to have a further analysis toward such invention. Therefore, this study took the modified jacket platform as a minimum structure, and local stresses analysis by using finite element method is applied for the most critical tubular joint with multiplanarity of the joint is taking into account. The analysis was carried out using the finite element program of Salome Meca with three-dimensional solid elements are used to model the multiplanar joint. Various loading types of axial force, in-plane bending moment, and out-of-plane bending moment are applied respectively to investigate the stress distribution along the brace-chord intersection line of the tubular joint. The results show that the hotspot stress occurred at a different point along each brace-chord intersection line for each loading type. Finally, as compared to the in-plane bending moment or out-of-plane bending moment loading types, the axial force loading state is thought to generate greater hotspot stress.

A Semi-quantitative Approach for Assessment of Risk Trends in the Norwegian Oil and Gas Industry

2017 ◽  
pp. 297-312 ◽  
Author(s):  
Eirik Bjorheim Abrahamsen ◽  
Jon Tømmerås Selvik ◽  
Bjørnar Heide ◽  
Jan Erik Vinnem
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Quantitative Approach ◽  
Gas Industry

Challenges of Developing Marginal Fields in the Current Climate of Oil and Gas Industry

2021 ◽  
Author(s):  
Amina Danmadami ◽  
Ibiye Iyalla ◽  
Gbenga Oluyemi ◽  
Jesse Andrawus
Keyword(s):  
Oil And Gas ◽  
Dynamic Environment ◽  
Poor Performance ◽  
Oil And Gas Industry ◽  
Economic Benefits ◽  
Gas Industry ◽  
Field Development ◽  
Quality Technology ◽  
Indigenous Participation ◽  
Marginal Field

Abstract Marginal field development has gained relevance in oil producing countries because of the huge potential economic benefits it offers. The Federal Government of Nigeria commenced a Marginal Fields program in 2001 as part of her policy to improve the nation’s strategic oil and gas reserves and promote indigenous participation in the upstream sector. Twenty years after the award of marginal fields to indigenous companies to develop, 50% have developed and in production, 13% have made some progress with their acquisition while 37% remain undeveloped. The poor performance of the marginal field operators is due to certain challenges which have impeded their progress. A review of challenges of developing marginal fields in the current industry climate was conducted on marginal fields in Nigeria to identify keys issues. These were identified as: funding, technical, and public policy. Considering the complex, competitive and dynamic environment in which these oil and gas companies operate, with competition from renewables, pressure to reduce carbon footprint, low oil price and investors expectation of a good return, companies must maintain tight financial plan, minimize emissions from their operations and focus on efficiency through innovation. The study identifies the need for a decision-making approach that takes into consideration multi criteria such as cost, regulation, quality, technology, security, stakeholders, safety and environment, as important criteria based on which to evaluate the selection of appropriate development option for marginal fields.

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