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PEM 6 – Evaluation of Projects – Case Study
PEM 6 – Evaluation of Projects – Case Study
Economic Assessment
Rebecca Schauer & Simón Ucrós
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
Economic Assessment
Rebecca Schauer & Simón Ucrós
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
08
Fall
08
Fall
INTRODUCTION
After years of hard work by our geologists, geophysicists, and reservoir engineers, an oil field was discovered. Before deciding whether to develop this field or not, an economic assessment of our potential production options is necessary as to validate its economic viability. This report contains necessary work by surface installation specialists, tax experts, and others in order to define the best development option. Before getting into the specificities of the economic assessment, we will briefly summarize the technical data provided by the engineers, as well as the different development options, economic assumptions, fiscal terms, and project financing related to the project. After, we will explain the results of each scenario and conclude which one represents the best opportunity for our company.
Technical Data
* Water depth of offshore oil field in Africa: 330 feet (100 meters) * Reserves: * 1P: 120 Mb * 2P: 200 Mb * 3P: 350 Mb * Vertical depth of well: 10 000 feet (3000 meters) * Productive area: 6km x 2.5 km = 15 km2 (3750 acres) * Well productivity: 3000 b/d * One injector well for every three production wells * Tangible investments include: * Construction of platforms (wellhead and injection/production platform) * Facilities (injection, production, and storage)
