Optimization studies at conceptual design stage by means of criterion evaluation: Kuyumbinskoye oil field case study

UDK: 622.276.012
DOI: 10.24887/0028-2448-2017-4-103-107
Key words: optimization studies, conceptual design, oil field development, criterion evaluation
Authors: I.V. Butsaev, N.S. Abramova, O.V. Zlobina (Giprovostokneft JSC, RF, Samara), S.V. Telyshev, R.M. Tuchvatullin (Slavneft-Krasnoyarskneftegas LLC, RF, Krasnoyarsk)

In recent years under conditions of turbulent environment there is raised a question of investment efficiency in major oil and gas projects. The early stages of project implementation have a high impact of management decisions on the future value of the project (asset) at low initial costs and are associated with high uncertainty of the input parameters and the lack of tools for decision-making.

Until recently, the only generally accepted method of alternative selection at designing of oil field development was technical and economic assessment, which involves cost comparison of each alternative. Estimation precision at the stage "Selection" is ± 30%. Frequently the difference between alternatives lies within the limits of estimation precision. Consequently, selecting the alternative with potentially the lowest cost, the total value of the project can be significantly reduced. Therefore, there is a need for additional assessment tools, the objectivity of which would be more tangible.

The method of alternative selection of technological systems in oil field development by means of criterion evaluation was implemented in Giprovostokneft when performing conceptual design of Kuyumbinskoye oil field. Using the proposed method helped to optimize the concept of field development, in which the best options for each technological system were adjusted with each other, providing consistent solutions.

Described methodology is introduced in Giprovostokneft in feasibility studies, conceptual designs and master plans, but improvement work on it continues. This will take into account not only the impact of each factor on the system, but also their mutual influence. In General, the application of the criterion evaluation method forms new approach to realization of investment opportunities and significantly increases the economic efficiency of investment projects

References

1. Vykhodtsev A.V., Kaverin A.A., Conceptual design and long-term planningВ of oil and gas fields development (In Russ.), Neftyanoe khozyaystvo = Oil Industry,В 2016, no. 4, pp. 42–45.

2. Gizbrekht D., Yatsenko V., Dubovitskaya E., Tkachenko M., Estimating costsВ for the construction of oil and gas facilities: foreign and Russian experienceВ (In Russ.), Neft' i kapital, 2014, no. 5, pp. 2–3.

3. Ismagilov R.R., Kudryavtsev I.A., Maksimov Yu.V., Phases of conceptual designВ for field development (In Russ.), Neftyanoe khozyaystvo = Oil Industry,В 2014, no. 12. – S. 66–70.

4. Sugaipov D.A., Sandler I.L., Development of new oil and gas fields inВ Gazprom Neft JSC using the major projects management system (In Russ.),В Neftyanoe khozyaystvo = Oil Industry, 2014, no. 12, pp. 6–9.

In recent years under conditions of turbulent environment there is raised a question of investment efficiency in major oil and gas projects. The early stages of project implementation have a high impact of management decisions on the future value of the project (asset) at low initial costs and are associated with high uncertainty of the input parameters and the lack of tools for decision-making.

Until recently, the only generally accepted method of alternative selection at designing of oil field development was technical and economic assessment, which involves cost comparison of each alternative. Estimation precision at the stage "Selection" is ± 30%. Frequently the difference between alternatives lies within the limits of estimation precision. Consequently, selecting the alternative with potentially the lowest cost, the total value of the project can be significantly reduced. Therefore, there is a need for additional assessment tools, the objectivity of which would be more tangible.

The method of alternative selection of technological systems in oil field development by means of criterion evaluation was implemented in Giprovostokneft when performing conceptual design of Kuyumbinskoye oil field. Using the proposed method helped to optimize the concept of field development, in which the best options for each technological system were adjusted with each other, providing consistent solutions.

Described methodology is introduced in Giprovostokneft in feasibility studies, conceptual designs and master plans, but improvement work on it continues. This will take into account not only the impact of each factor on the system, but also their mutual influence. In General, the application of the criterion evaluation method forms new approach to realization of investment opportunities and significantly increases the economic efficiency of investment projects

References

1. Vykhodtsev A.V., Kaverin A.A., Conceptual design and long-term planningВ of oil and gas fields development (In Russ.), Neftyanoe khozyaystvo = Oil Industry,В 2016, no. 4, pp. 42–45.

2. Gizbrekht D., Yatsenko V., Dubovitskaya E., Tkachenko M., Estimating costsВ for the construction of oil and gas facilities: foreign and Russian experienceВ (In Russ.), Neft' i kapital, 2014, no. 5, pp. 2–3.

3. Ismagilov R.R., Kudryavtsev I.A., Maksimov Yu.V., Phases of conceptual designВ for field development (In Russ.), Neftyanoe khozyaystvo = Oil Industry,В 2014, no. 12. – S. 66–70.

4. Sugaipov D.A., Sandler I.L., Development of new oil and gas fields inВ Gazprom Neft JSC using the major projects management system (In Russ.),В Neftyanoe khozyaystvo = Oil Industry, 2014, no. 12, pp. 6–9.



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