Projects: Integrated Field Development
Objective: Concept selection for expansion of an integrated oil sands asset (subsurface, facility, pipelines)
Focus: Strategy Growth Performance
Domain: Integrated Field Development, Project Development
Client: Major operator with several oil sands assets
Our client wanted to assess several concepts and economic viability of expansion of their 15,000 bpcd SAGD producing asset located in Athabasca.
NAFT Energy consultant led a multi-disciplinary team (in client’s office) to address and provide following:
– Setting project KPIs to support corporate strategy, project charter, stakeholder engagement, project assignment, interface and integration management,
– Due diligence and market intelligence to obtain industry benchmark and best practices,
– Subsurface definition including reservoir quality/challenges (tier base), completion techniques, risks, analog fields, reservoir characterization, simulation runs, pool and drainage area (DA) ranking, cut-offs rates, Opex, profiling, sensitivity analysis, etc.
– Facility definition including design basis (DBM), expansion scenarios, design margins, RAM review, cost assessment, risk analysis, facilitating VIP sessions, staged-expansion analysis, time-shift analysis, etc.
– Schedule analysis with considerations for field works window, long-lead-items, dispositions and access, regulatory approval and permitting, technology piloting, etc.
– Economic analysis including, break-even analysis, sensitivity analysis (oil price, gas price, Capex, Opex, schedule, etc.) Opex vs. Capex analysis,
– Benchmarking on capital intensity, IRR, NPV, additional steam capacity, additional bitumen capacity, pad cost per well-pair, $ per Km/inch gathering lines, etc.
– Documentation and preparation for decision gate including, project execution operation and procurement strategy, business case, decision memo and other documents,
Through our consulting services our client benefited from:
– Optimized expansion concept for their SAGD plan that is supported by subsurface true potential,
Other benefits to our client were:
– Risk mitigation through project leadership, stakeholder engagement and interface management,
– Alignment on the expansion capacity and the concept among key stakeholders (SLT, asset, O&M, subsurface, PMO, CFO),
– Market intelligence to assess and gauge project KPIs against.
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