Our client asked RISC to conduct a technical and commercial review of a PSC which they operate with 55% participating interest. The asset was under development with a Plan of Development (POD) for each of the separate oil and gas developments. The PSC was not moving forward due to marginal economics and the impact of economic limits on resources.
RISC peer reviewed the geoscience, drilling and DST data, as well as the development plans and project economics. We found that the client was looking at the oil and gas developments separately when they could be combined using dual completion wells and common processing equipment. Facilities were also budgeted as new for the development with alternative options not being considered.
RISC’s highly experience peer review team recommended this use of dual completions (with an incremental cost of approximately A$1 million per well) which allowed for the early evaluation of all producing reservoirs. The use of dual completions also reduced well numbers in 2P scenarios which saved A$120 million. The use of rental equipment was also recommended to defer CAPEX and reduce ABEX.
The operating company now had a development with robust project economics that was attractive to private investors. They were able to seek investment and proceed with the development.Back to previous page