Purpose: Enhance your overall understanding of petroleum exploration Multidisciplinary challenge You are an exploration team in charge of a new petroleum province Your task is to get maximum return on investment (ROI)
You start with $200 Million You can apply for more money later You are creating Value: Net value of the oil fields discovered MINUS costs (surveys, wells, etc.) Winning team: highest return on investment (ROI) ROI = Value / Funds received
You should strive to accumulate as many KPs possible They are an indication i of accuracy, credibility and performance Knowledge Points are a measure of how prosperous the blocks the team bid for They are very useful later in the simulation when you are low on cash and want to request further funding from Headquarters
Where and how to find oil Surveys used in exploration Licensing rounds Farm in and Partnerships Rigs and Sub contractors Addressing environmental issues Reducing uncertainty Economically viable volumes Team working and negotiation Critical decision making, analytical skills Multi tasking
Phase 1: Find Basins Phase 2: Bid for Licences Phase 3: Drilling 3.1 Farm in 3.2 Order Rig 3.3 33Select Providers 3.4 Select Position 35 3.5 Testing
Columns (A to DL) Cell (BO,49) (1 to 15 52) Rows 619 600 sea bed depth Block 619
Insert your Insert your username and password here
Find the 3 basins in the area Basin: Sedimentary rocks in the deep subsurface where oil and gas was generated Procedure 1.Buy and study magnetic and gravimetric surveys 2.Submit the coordinates, column (letter) and row (number)for each basin centre
Gravimetric surveys show the gravity in the sub surface Sedimentary rocks ( basins ) have lower densities i than the surrounding crystalline rocks The lower the gravity pull, the higher h the probability that there is a basin below and vice versa Low gravity (green) > Basins High gravity (red) > Crystalline rocks
Magnetic surveys show similar information as gravimetric i surveys The sedimentary rocks in the basins have a lower concentration of magnetic materials il than the surrounding crystalline rocks Sdi Sedimentary basins are the areas with ih the lowest magnetic field Yellow colours indicate low magnetic field, blue colours indicate high magnetic fields. Basins are yellow and non basin areas blue.
North East
Find the cell that contains the centre of the basin You have to locate all 3 cells to get 100 kp
Possible to get between 0 and 100 knowledge points (KP) KP s can be used e.g. when you apply for money Must be solved before deadline After the deadline, all submissions are evaluated
All basins are located Message sent to all teams with the results Oil and gas is close to the basins Next step: First licensing round The blocks around one of the basins are on offer
Bid to get a exploration licence Exploration licence: A permission i from the Government to explore a block Procedure 1. Buy and study Common Risk Segment Maps, 2D Seismic surveys, and Spawning Ground Maps 2. Submit 3 bids Block number Amount offered to Government ( bonus )
There are spawning ground areas in the map these are environmentally sensitive areas where fish breed Some spawning grounds might be in the blocks that have been offered However, no licences will be awarded in blocks that are spawning grounds To find out which blocks are spawning grounds, you can buy a Spawning Ground Survey
Red Area: Spawning Grounds You will not be awarded blocks that contain any red area Blue Area: Not Spawning Grounds The survey covers the whole area
Common Risk Segment (CRS) surveys tell you about the probability bbl of a prospect containing oil or gas In the CRS surveys: Green indicates that the area has all the prerequisites to have good prospects Orange indicates that the area might have all what is required Rdi Red indicates that it is highly hl unlikely l that the area will contain good prospects
CRS surveys do not give information about the individual prospects that are shown in the 2D seismic surveys There is one CRS survey for each of the three geological layers or horizons, and each CRS survey covers the whole OilSim map and take into account the prerequisites iit of whether: hth 1. there is a basin and a migration route into the prospects in the area 2. there is sealing rock in the area, so that the oil and gas can be trapped 3. there is porous reservoir rock in the area, so that the oil or gas can be stored below the trap.
Prospect probability Red: low Orange: medium Green: high There is one CRS for There is one CRS for each geological layer
Band 3 Eocene Band 2 Paleocene Band 1 Creataceous
Prospect Play Migration Basin
Reservoir Seal Migration Reservoir Seal
A 2D Seismic survey is a cross section of the geological l layers along either a column or a row Is used for locating prospects Look out for traps Three separate geological layers
In OilSim, there is only one type of trap: the four way closure structural trap in reality, there are several other types Three prospecting systems or horizons 3. Eocene (1500m below the seabed) 2. Pl Paleocene (2500m bl below the seabed) bd) 1. Cretaceous (3500m below the seabed)
Top of sealing rock Top of reservoir rock
Column Row Basin,Source Prospect, Reservoir
Study spawning ground maps to see which blocks to avoid Use CRS to see which blocks to study Buy and study many 2D surveys Focus on shallow hll water blocks It is cheaper to drill exploration wells in shallow water It is more economically viable to produce oil It is more economically viable to produce oil and gas in shallow water
Remember to submit if you change you answer
Minimum bonus: 1000000 Maximum bonus: 30000000 You will only get one licence Highest bid gets the licence If you lose on all three blocks, you will get a random licence (of the ones that are left) Do submit 3 bids -> more KP s and higher probability for success
Submit your bid before the deadline After the deadline, all bids are evaluated, and each team gets one and only one licence
Every team has got one exploration licence Message sent to all teams with the results Knowledge Points: a measure of how prosperous the blocks the team bid for were Next step: Farm in
The headquarters of your company has evaluated the licence that you were awarded Although the possibility of finding oil is fair, the costs involved are large, g, and the headquarters wants you to spread the risk. This is accomplished by: investing in other licences (farm in), and letting other invest in your licence (farm out)
Get other s to invest 20% or more in your licence ( farm out ) You can only send farm in offers (!) Offers to buy parts of other licences Procedure for farming in: 1. Study CRS and 2D Seismic surveys 2.Submit one offer for each viable licence Amount offered Share wanted (in whole %)
Partners pay their share of all future costs incurred by the partnership. p Partners receive their share of the net proceedings from any oil found on the licence The operator team takes all decisions regarding acquirement of 3D seismic, drilling of wells and testing of wells
Study CRS and 2D seismic surveys of the other licences Submit your bids Minimum amount 100,000 for 1% You are not allowed to drill before at least 20% of your licence has been farmed out You can farm in & out at any time Partners in a block get all info about drilled wells and discovered oil and gas fields
Partnerships will be established every time a seller accepts an offer On the main page, you can see all the licences The licences you operate The licences you have invested in Other licences
Next task: order rig 3 rig types Drillships Semi submersibles Jack up rigs Different water depths, Different day rates Rig cost = drilling days * day rate
Seabed Layer 3 Eocene Layer 2 Paleocene Layer 1 Cretaceous water depth 1500 m below seabed 2500 m below seabed 3500 m below seabed
Limited number of rigs available You can order a rig Start using it within 20 minutes Not enough for all Wait in a queue, if another team is using the rig Rig day rates are dynamic
You have to choose where to drill Which cells?..and how deep to drill Either to the Eocene horizon Through the Eocene to the Paleocene horizon, or through the Eocene, the Paleocene, g,, and to the Cretaceous horizon
Buy an EIA survey to get more knowledge about the area EIA equals Less probability bbl for drilling problems Less severe consequences if you run into problems In the EIA you can also see which drilling locations to avoid
Certain problems can occur if Service Provider Selection is poor quality Other penalties can occur if you drill in areas indicated as problematic in the EIA As in real life, problems can occur randomly and these are also applied with fines levied accordingly
Shows the structure: in one (of the three) horizons in one block Look out for tops a top = a trap = a prospect
Column 60, Row 79 Column 60, Row 78 Layer 3 Eocene Layer 2 Paleocene Layer 1 Creataceous
If you discover a field > decide whether you want more information about that field You get more information by doing a production test (and other tests) Tests take 10 days per field Tests have the same day rate as the drilling (you use the same providers)
From Probable volume to proven reserves
First well: 0 to 572 MBO (after drilling) 11 to 266 MBO (after testing) Proven volume: 11 MBO Second well: 11 to 233 MBO (after drilling) 35 to 210 MBO (after testing) Proven volume: 35 MBO
Click on Apply for More Funds Tab 1 KP for each $25,000 applied for Answer the questions Get all 3 and you get cash and keep KP s Get one wrong you get the cash and lose half the KP s Get two wrong and you get half the cash and lose all KP s Get all 3 wrong, you lose the lot When you have less than 10 knowledge points you can still apply for cash, but you will be fined 5million for each 20million requested.
Drill appraisal wells to narrow the uncertainty (get proven volumes) Drill into other prospects Farm in and out Two additional licensing rounds Apply for more money, if you run out of cash Winner: highest ROI