AVOID THE IRRESISTIBLEe2ab2795878289afcc94-5f07cf287e13b4eba5efff33cfd882b2.r30.cf… · portfolio...
Transcript of AVOID THE IRRESISTIBLEe2ab2795878289afcc94-5f07cf287e13b4eba5efff33cfd882b2.r30.cf… · portfolio...
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AVOID THE IRRESISTIBLE Daniel Baltar
London
February, 2015
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Outline
• Challenges to exploration performance and value creation
• Impact of CSEM in exploration uncertainty
• Performance of CSEM in prospect evaluation
• Challenges to the application of CSEM and value realization
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Value of exploration
𝐕𝐞𝐱𝐩 = 𝐍𝐏𝐕𝐞 𝐏𝐞 − 𝟏 − 𝐏𝐞 𝐂𝐞𝐱𝐩
Vexp is Value of Exploration NPVe is the average Net Present Value of an economic success Pe is the probability of an economic success Cexp is the Cost of Exploration
• Pe is the main Value of Exploration driver
Gains term Losses term
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PoS
Trap Reservoir
Charge Seal
Pe
Volume estimation
Area Net thickness
Porosity Saturation
Rf FVF
Evaluation workflow
UNCERTAINTY Pe
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A better exploration outcome
Trap 10%
Reservoir 15%
Charge 30%
Seal 45%
Typical exploration failures: most failures are due to the fluid component
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PORTFOLIO VS PROSPECT
Do we need exploration to optimize EP portfolios? IQPC Portfolio Optimization in Oil
and Gas, Houston, TX, February 2004. Copyright 2013, Daniel Zweidler & Associates, Inc.
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Net rock volume [e+6 m3]
Recovera
ble
volu
me [
MM
boe]
VOLUME ESTIMATION UNCERTAINTY
RV = NRV Φ Shc Rf / FVF
The net rock volume is the main source of recoverable
volume uncertainty
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Area Net thickness
Porosity Saturation
Rf FVF
Decision making under uncertainty
Pe
Volume estimation
PoS
Trap Reservoir
Charge Seal
Pe
Area Net thickness
Porosity Saturation
Rf FVF
Volume estimation
PoS
Trap Reservoir
Charge Seal
Pe ~ 5-50%
Can EM do something to improve this?
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3D EM TECHNOLOGY
What EM does:
Image subsurface resistivity
Acquisition
Water depth
20 – 3500m
CSEM
Measurement
Sensitivity
0 – 3500m
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CSEM SENSITIVITY FOR A SPECIFIC TARGET
The larger the resistive
body, the larger the
EM signal
Area [km2]
Net th
ickness [m
] x R
esis
tivity [Ω
m]
EM
sig
nal
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Trap Reservoir
Charge Seal
PoS Pe
Decision making under uncertainty
Volume estimation
Area Net thickness
Porosity Saturation
Rf FVF
CSEM result
Integration with seismic & well log data
CSEM sensitivity Rock property uncertainties
CSEM uncertainties
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Barents Sea example Courtesy: Det Norske
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Volume prediction with CSEM
Actual volumes
P50 C
SE
M p
redic
ted N
RV
Do we need exploration to optimize EP portfolios? IQPC Portfolio
Optimization in Oil and Gas, Houston, TX, February 2004.
Copyright 2013, Daniel Zweidler & Associates, Inc.
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Exploration Portfolio before 3D CSEM
Probability of success (PoS)
Rec
ove
rab
le v
olu
me
[MM
bo
e]
Economic threshold
Note: only CSEM feasible prospects included in this portfolio
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Exploration portfolio after 3D CSEM
Rec
ove
rab
le v
olu
me
[MM
bo
e]
Economic threshold
Note: only CSEM feasible prospects included in this portfolio
Probability of success (PoS)
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Exploration portfolio after 3D CSEM
Economic threshold
Note: only CSEM feasible prospects included in this portfolio
Rec
ove
rab
le v
olu
me
[MM
bo
e]
Probability of success (PoS)
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Exploration portfolio after 3D CSEM
Economic threshold
Note: only CSEM feasible prospects included in this portfolio
Rec
ove
rab
le v
olu
me
[MM
bo
e]
Probability of success (PoS)
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Portfolio before and after 3D EM
14 wells drilled 1 economic success 3 mid-sized discoveries 10 dry wells / technical success Pe no EM = 7% Pe with EM = 33 %
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Decision making under uncertainty
Pe
Area Net thickness
Porosity Saturation
Rf FVF
Volume estimation
PoS
Trap Reservoir
Charge Seal
Pe
Area Net thickness
Porosity Saturation
Rf FVF
Volume estimation
PoS
Trap Reservoir
Charge Seal
Pe ~ 5-50%
Can EM do something to improve this?
Yes, evidence from Brazil, Mexico, and the Barents Sea prove this is the case.
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Challenges to CSEM adoption and application
Workflows Interpreters
Data
Information
Evaluation
Decision
2002
2012
2008
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Conclusion • Pe is the main Value of Exploration driver
• Fluid presence and net rock volume evaluation uncertainties prevent Pe improvement
• Resistivity derived from CSEM allows for a significant reduction of the main uncertainties and increase of Pe
• Needs to be adopted systematically
• Workflows must be adapted
• Interpreters have to be trained
• The exploration workflow will need to change to adapt to the new tool
• EMGS offers an integral CSEM solution for hydrocarbon exploration
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Thank you