HWU DRILLING PROJECT INVESTMENT ANALYSIS (CASE STUDY OF HWU DRILLING AS RIG REPLACEMENT PROJECT AT TANO FIELD, SINAMBUNG BLOCK)
SINAMBUNG Block is operated by PETROGRAMA located in East Kalimantan Province, Indonesia. There are several blocks under the SINAMBUNG block, which TANO field being one such block. The development of the TANO field requires a high number of wells to maintain its production levels due to marginal res...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/71106 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | SINAMBUNG Block is operated by PETROGRAMA located in East Kalimantan Province, Indonesia. There are several blocks under the SINAMBUNG block, which TANO field being one such block. The development of the TANO field requires a high number of wells to maintain its production levels due to marginal reserves condition where its reservoirs are randomly distributed either laterally or vertically. The main focus of current development on the field is on the shallow section since the shallow wells will have lower costs proportional to their limited well reserves. Shallow zone reservoir targets are between 500 – 1,800 m below subsea level. Several optimizations have been done to lower the cost of the shallow wells, with the most recent breakthrough in the new type of wells architecture of Single or One Phase Wells (OPW), where 20” conductor pipe will be piled until 110m below subsea, then 8-1/2” or 9-1/2” borehole drilled from surface to the target reservoir depth as per requirement.
Another breakthrough hopes to be developed by the Company to further reduce the shallow wells cost is by utilizing Hydraulic WorkOver Unit (HWU) as replacement for standard Swamp Barge Rig commonly used to perform the drilling operation. A drilling project in Oil and Gas Industry are capital intensive project involves very high risk in term of operation failure up to uncertainties on the actual reserves found compare to prognosis, even to the cash flow generation from wells upon completion as it will be depended on actual selling prices.
The study aims to provide HWU drilling investment thorough analysis to find the optimum value for the company, in which the project valuations are calculated using Discounted Cash Flow (DCF) method and abiding by the terms of the Production Sharing Contract (PSC) for the field operatorship. The risk to the projects will be assessed further through simulation of the uncertainties of the parameters and considering the sensitivities to the project results.
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