LNG project due diligence

Overview

An North Asian company asked us to conduct technical due diligence on a producing LNG project in South East Asia.

Challenge

Reservoir performance in the main producing field suggested some upside, however neither Operator or Seller had yet quantified this. The Operator was engaged in this work estimating six months to complete an update. Nevertheless, the Sellers price expectation hinged on the ability to expand the project which in turn required additional resources.

Approach

Over a three week period, RISC’s technical team:

• Updated probabilistic volumetric estimate incorporating all development well data.
• Reviewed and selected valid pressure data for material balance.
• Matched pressure data to a range of scenarios.
• Provided a technical foundation to a significant resource upgrade.

Outcomes

• RISC’s predictions assisted our client to make a bid for this quality asset.
• Client bid was successful.
• Our client has been able to make decisions with confidence.