Exploration works planning using value of information concept in geological uncertainties and project limitations

P. Ya Mostovoy, R. A. Oshamrin, V. S. Rukavishnikov, A. M. Vashevnik

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The S field development plan is focused on the Jeribe/Upper Dhiban reservoir interval. There is significant uncertainty in estimate of stock-tank oil initially in place (STOIIP) and recoverable resources due to the absence of a defined oil-water contact (OWC) in the wells drilled to date H-1 and S-1. The field is considered to be developed by six wells. However because of uncertainty in reserves field development balances the need for immediate production with the need to assess the most likely reserve size as quickly as possible in order to optimize the full field facilities. The approach to optimal drilling sequence finding in geological uncertainties and limiting conditions is offered in the research - evidence from S oil field. The suggested approach is used to recommend optimal drilling sequence of planed wells to reduce economic risks and obtain the highest NPV of S development project. The optimal drilling sequence was found using value of information approach leading to the highest project expected monetary value from more than 120 possible drilling sequences. The dynamic development strategy that reduces uncertainties and economic risks by VOI approach - drilling risky well in the first two years of production and depending on the outcome realize facility optimization and further drilling was recommended.

Original languageEnglish
Title of host publicationGeoBaikal 2018
PublisherEuropean Association of Geoscientists and Engineers, EAGE
ISBN (Electronic)9789462822580
DOIs
Publication statusPublished - 2018
Event5th International Conference GeoBaikal 2018 - Irkutsk, Russian Federation
Duration: 11 Aug 201817 Aug 2018

Publication series

NameGeoBaikal 2018

Conference

Conference5th International Conference GeoBaikal 2018
CountryRussian Federation
CityIrkutsk
Period11.8.1817.8.18

ASJC Scopus subject areas

  • Geophysics
  • Geotechnical Engineering and Engineering Geology
  • Geology

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