DATE

January 2017

Deepwater Exploration & Development Planning

Supporting a major Latin American national-oil company in maximizing the value of deep-water hydrocarbon resources

Challenge

The challenge was twofold: 

  • develop an understanding of the key challenges and risks that the client will face in the exploration and development phases of a critical project.
  • develop a model to estimate risked reserves of potential development clusters, and to demonstrate potential value creation through business cases for different resource scenarios.

Approach

  • Firstly, we analyzed key drivers for the area to be considered in conceptualization of development options. 
  • Secondly, we developed a probabilistic Monte Carlo model to quantify scenarios of recoverable resources, based on geological knowledge and benchmarked analogous GOM deep-water projects, for cost, technology and infrastructure insight. 
  • After this, we developed an economic model to forecast development of the area, including production profiles, CAPEX & OPEX, revenues, taxes, and royalties. Finally, we presented these findings, with a project roadmap and execution plan, to top management within the client organization.

Value

  • The client gained valuable knowledge of the challenges, risks, and options for development of the Perdido Deepwater Area. 
  • Furnished with the probabilistic model that we developed, the client can now target the highest-potential drilling opportunities based on acquired knowledge, inputting new data as geological knowledge increases. 

Deepwater Exploration & Development Planning

Supporting a major Latin American national-oil company in maximizing the value of deep-water hydrocarbon resources

DATE

January 2017

Challenge

The challenge was twofold: 

  • develop an understanding of the key challenges and risks that the client will face in the exploration and development phases of a critical project.
  • develop a model to estimate risked reserves of potential development clusters, and to demonstrate potential value creation through business cases for different resource scenarios.

Approach

  • Firstly, we analyzed key drivers for the area to be considered in conceptualization of development options. 
  • Secondly, we developed a probabilistic Monte Carlo model to quantify scenarios of recoverable resources, based on geological knowledge and benchmarked analogous GOM deep-water projects, for cost, technology and infrastructure insight. 
  • After this, we developed an economic model to forecast development of the area, including production profiles, CAPEX & OPEX, revenues, taxes, and royalties. Finally, we presented these findings, with a project roadmap and execution plan, to top management within the client organization.

Value

  • The client gained valuable knowledge of the challenges, risks, and options for development of the Perdido Deepwater Area. 
  • Furnished with the probabilistic model that we developed, the client can now target the highest-potential drilling opportunities based on acquired knowledge, inputting new data as geological knowledge increases.