Reserves and Resources Management: A Continuous Improvement of the Business Processes

2021 ◽  
Author(s):  
Aen Nuril Hadi ◽  
Stephen Leonardo ◽  
Khairul Anwar ◽  
Tuan Manotar Aritonang ◽  
Devialina Puspita Dewi ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Business Processes ◽  
Oil And Gas ◽  
Data Accessibility ◽  
Resources Management ◽  
Energy Company ◽  
Petroleum Resources ◽  
Management And Development ◽  
International Assets ◽  
Analysis Platform

Abstract Managing oil and gas reserves and resources of Pertamina, an Indonesia state owned energy company, has always been challenging processes as the company's portfolio is sparsely located throughout Indonesia. Moreover, since November 2013 the company has also managed its international assets spread across three regions, namely Africa, Asia, and Middle East. In total, there are ~480 fields and ~870 geological structures with different degree of geological background, environment, uncertainty, and maturity of the fields/projects. Obviously, to cope with all those complexities, Reserves Management Department need to figure out its way to properly manage reserves and resources of the company. Reserves and resources of oil and gas is a key strategic priority of the company. It is aligned with both portfolio management and development and production of the assets. Company decision in terms of work program and budget is also mainly derived from reserves and resources potential of the projects. Therefore, to obtain a standardized reserves and resources management, the company has launched company guideline which is mainly influenced by SPE Petroleum Resources Management System (SPE-PRMS, 2007). SPE-PRMS is a project-based system, where reserves and resources estimation, categorization, and classification are on project basis. To properly manage all the projects, since 2019, Reserves Management Department introduced a tool named Project Box which enable reserves analyst to properly map all the projects, evaluate the portfolio, and monitor the progress of the project both in development and exploration phase. Furthermore, to be aligned with company's digitalization campaign, all the reserves and resources data, Project Box, and many other strategic information are stored and maintained in an in-house software named Promyst which will be launched in early 2021. This tool will enhance data accessibility for both management and analyst, increase data integrity and security, provide data analysis platform, moreover this software could also generate cost efficiency for the company. In 2017, along with the final version of the company guideline, the company has fully adapted PRMS. This paper will explain how the company adapt PRMS to its company guideline in which some necessary adjustments took place with respect to company's business processes, the application of Project Box throughout all company's subsidiaries, and implementation of Promyst along with its features and future projection of the software. The result and benefit of implementing those items will be explained in this paper. These extensive works performed by the Reserves Management Department contribute significantly to the company not only for technical but also for commercial aspects therefore promoting a good corporate strategic planning and decision making.

Characterisation of petroleum assets for portfolio management

2010 ◽  
Vol 50 (2) ◽  
pp. 721
Author(s):  
Bernardus Wahyuputro ◽  
Steve Begg ◽  
Graeme Bethune
Keyword(s):  
Decision Making ◽  
Portfolio Management ◽  
Oil And Gas ◽  
Investment Decision ◽  
Lessons Learned ◽  
Modern Approach ◽  
Investment Decision Making ◽  
Petroleum Resources ◽  
Exploration And Production ◽  
Strategic Goals

There is growing use of modern portfolio management methods that integrate risks, strategic goals and optimisation techniques to aid investment decision-making in the exploration and production industry. This modern approach consists of stages of analysis that include asset analysis, strategic goals definition and portfolio selection to maximise the probability of meeting the strategic goals. To date, most work in this area has focussed on the portfolio management requirements of oil and gas operators. However, the approach has the potential to help decision-making surrounding the management of the petroleum resources of a state. Specifically, we are investigating its potential to help set fiscal terms that encourage investment whilst meeting state goals. Indonesia’s petroleum resources are used to inform and provide data for the study. This paper presents the problems identified and solutions developed in performing the first step—describing, quantifying and modelling the uncertainty in the performance of the assets that comprise the portfolio. Due to the size and heterogeneity of the portfolio, we have chosen to characterise the assets into different types, rather than model each one individually. The main benefit of characterising the assets is to make the problem tractable, particularly when it comes to optimisation. Characterisation will also provide insight to decision-maker’s about the nature of the portfolio that may impact long-term planning and setting of targets. Whilst the approach taken is motivated by the specific needs of a nation’s portfolio, it is expected that the lessons learned will be of use to operators with similar characteristics—large, heterogeneous portfolios.

Gauging the confidence in publicly reported oil and gas reserves: introducing the Reserves Confidence Metric (RCM)

2017 ◽  
Vol 57 (1) ◽  
pp. 88
Author(s):  
Don McMillan
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Coal Seam Gas ◽  
Gas Industry ◽  
Resources Management ◽  
Unconventional Resources ◽  
Production Ratio ◽  
Petroleum Resources ◽  
Unconventional Resource ◽  
Reserve Estimates

Confidence in publicly disclosed reserves and resources is critical to the investment community and the reputation of the oil and gas industry. This paper introduces a commonly utilised industry concept for reviewing reserve estimates in a format that non-professionals can use with confidence. Surveys (McMillan 2014) have indicated a perception that the Society of Petroleum Engineers – Petroleum Resources Management System (SPE-PRMS) lacks consistency and repeatability and treats conventional and unconventional resources differently. This is discussed in detail in this paper, along with an explanation of the confusion caused by these differences. The oil and gas industry is still endeavouring to understand how to treat unconventional resource estimations and this paper endeavours to capture areas of contention and risks in relation to reported reserves. Reserves Confidence Metric (RCM) is presented as a method for rating confidence in publicly disclosed reserves. RCM, which is derived from the reserves to production ratio, can be used for any reserves standard or guideline. It is a simple metric, which any organisation or individual with limited knowledge of reserves can apply to identify reserves that require further information or should be used with caution. As an example, RCM is applied to Queensland’s publicly disclosed 2P reserves for all conventional and unconventional Coal Seam Gas (CSG) resources.

Managing Oil and Gas Project Value By Prime (Pertamina Investment Management Engine)

2020 ◽  
Author(s):  
F. Febrian
Keyword(s):  
Portfolio Management ◽  
Corporate Strategy ◽  
Oil And Gas ◽  
Investment Strategy ◽  
Project Portfolio ◽  
Action Plans ◽  
Investment Management ◽  
Micro Scale ◽  
Robust Portfolio ◽  
Oil And Gas Companies

Oil and gas companies are facing an enormous challenge to create value from mature fields. Moreover, price volatility presents a massive impact on project uncertainties. Therefore, robust portfolio management is essential for oil and gas companies to manage critical challenges and uncertainties. The objective of this study is to develop a robust portfolio model to assist top management in oil and gas companies to drive investment strategy. PRIME (Pertamina Investment Management Engine) has been built to visualize advanced oil and gas project portfolio management. The engine observes the relationship between risk-and-return as the main framework drivers. The profitability index is endorsed as a parameter to envisage the investment effectiveness of individual projects. Correspondingly, the risk index is a manifestation of multi-variable analysis involving subsurface uncertainty and price. A nine clusters "tactical board" matrix is provided as the outcome of PRIME to define generic strategy & action plans. The PRIME analysis leads to a dual theme of perspective: both macro and micro-scale. The macro-scale discovers a diversification of strategy and scenario development to achieve long-term objectives. Whereas, micro-scale perspective generates a detailed action plan in a particular cluster as a representation of the short and mid-term corporate strategy. Several strategies and action plans have been recommended, including advanced technology implementation, new gas commercialization, additional incentives in the Production Sharing Contract, tax management renegotiation, and project portfolio rebalancing

Ghana's petroleum industry: expectations, frustrations and anger in coastal communities

2020 ◽  
Vol 58 (3) ◽  
pp. 397-424
Author(s):  
Jesse Salah Ovadia ◽  
Jasper Abembia Ayelazuno ◽  
James Van Alstine
Keyword(s):  
Oil And Gas ◽  
Local Development ◽  
Petroleum Industry ◽  
Field Research ◽  
Gas Production ◽  
Oil Field ◽  
Oil And Gas Production ◽  
High Expectations ◽  
Petroleum Resources ◽  
Negative Impacts

ABSTRACTWith much fanfare, Ghana's Jubilee Oil Field was discovered in 2007 and began producing oil in 2010. In the six coastal districts nearest the offshore fields, expectations of oil-backed development have been raised. However, there is growing concern over what locals perceive to be negative impacts of oil and gas production. Based on field research conducted in 2010 and 2015 in the same communities in each district, this paper presents a longitudinal study of the impacts (real and perceived) of oil and gas production in Ghana. With few identifiable benefits beyond corporate social responsibility projects often disconnected from local development priorities, communities are growing angrier at their loss of livelihoods, increased social ills and dispossession from land and ocean. Assuming that others must be benefiting from the petroleum resources being extracted near their communities, there is growing frustration. High expectations, real and perceived grievances, and increasing social fragmentation threaten to lead to conflict and underdevelopment.

Adapted Methodology for Evaluating EOR Reserves and Resources, Incorporated and Applied at an Oil and Gas Company

2021 ◽  
Author(s):  
Lilibeth Chiquinquira Perdomo ◽  
Carlos Alvarez ◽  
Maria Edith Gracia ◽  
Guillermo Danilo Salomone ◽  
Gilberto Ventuirini ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Large Body ◽  
Securities And Exchange Commission ◽  
Point Of View ◽  
Assessment Process ◽  
Pilot Projects ◽  
Oil Reserves ◽  
Track Record ◽  
Starting Point ◽  
Petroleum Resources

Abstract As other companies registered in the US stock market, the company reports oil and gas reserves, in compliance with the definitions of the Securities and Exchange Commission (SEC). In addition, it complies internally with the guidelines established by the Petroleum Resources Management System to certify its resources. The PRMS focuses on supporting consistent evaluation of oil resources based on technically sound industry practices, providing fundamental principles for the assessment and classification of oil reserves and resources, but does not provide specific guidance for the classification and categorization of quantities associated with IOR projects. Recently, the company has implemented EOR pilot projects, and their results seem to show commerciality for future development or expansion to new areas, displaying multiple opportunities and proposals to incorporate reserves and resources. So far, the pilot projects and their expansions have been addressed only from the point of view of incremental projects, as an improvement over the previous secondary recovery. The company does not have sufficient track record in booking reserves or resources from EOR projects, their quantities have been incorporated following bibliographic references and results of EOR projects with proven commerciality around the world. For this reason, the need arose to have a tool that provides the company with methodological criteria to evaluate the resources and reserves inherent in this type of project, that incorporate the "best practices" of the industry and that respect the guidelines and definitions of PRMS for incremental projects. That was how, the need to meet this challenging goal led company to develop its "EOR Resources and Reserves Assessment Guide" with the advice of a renowned consulting company. Although the Guide is not intended to be a review of the large body of existing IOR literature, it contains several useful references that serve as a starting point for understanding the IOR project for assessment process of resources and reserves. This document shows the process of development and implementation of the EOR guide, complementing the existing guides within the corporation and providing the company with a positive result within the internal processes of Audit, reserves and resources for this type of projects.

scholarly journals Reengineering of supply chain management integrated scheduling processes

2018 ◽  
Vol 193 ◽  
pp. 05064 ◽  
Author(s):  
Ekaterina Kuleshova ◽  
Anastasia Levina ◽  
Rustam Esedulaev
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Business Process ◽  
Business Processes ◽  
Current Practice ◽  
Oil And Gas ◽  
Chain Management ◽  
Integrated Scheduling ◽  
Data Flows

The paper describes the principle of the reengineering of supply chain management integrated scheduling processes in order to increase in efficiency of business process and decrease the decision-making time at collision of plan-fact deviations. The basic concept of business-processes reengineering is analyzed. The experience of reengineering of supply chain integrated scheduling business processes for the oil and gas branch is presented. The bottlenecks of the current practice were revealed. The purpose of this paper is to carry out recommendations for improving business processes based on an analysis of the current realization of the process, his provision with information systems and data flows.

scholarly journals The interactive model for automatic calculation of the well cluster construction complex cost

2021 ◽  
Vol 13 (4) ◽  
Author(s):  
Dmitry Glukhikh ◽  
Igor Glukhikh
Keyword(s):  
Resource Availability ◽  
Business Processes ◽  
Oil And Gas ◽  
Geographic Location ◽  
Knowledge Bases ◽  
Capital Costs ◽  
The Road ◽  
Oil And Gas Fields ◽  
Geological Conditions ◽  
Gas Fields

Currently, companies are consuming transitions to the development of the difficult oil and gas fields. The difficulty implies factors: features of geological conditions, remote geographic location, features of the relief. The development of new oil and gas fields requires design approaches that ensure maximum profitability on complex assets. One of the promising development options is the digitalization and automation of design processes. The paper proposes a new approach to assessing capital costs when designing well pads in the field. A new method is proposed for calculating costs and restrictions at the stage of resources for optimizing a well pad, taking into account detailed topography and resource availability through digitalization and automation. The problem was solved using an interactive ontological model with built-in knowledge bases and calculation algorithms. The model was tested at the field, the possible risks of using the model were assessed, and sufficient accuracy of the obtained values was obtained. The results of the work make it possible to improve the stage of optimization of the well pad, taking into account the costs of resources: drilling, engineering preparation, backfilling of the road, supply of communications, availability of resources and unforeseen costs. The work supports the trends of digitalization and technological processes and business processes. The developed model made it possible to digitize the stage of optimizing the location of the well pad, to automate the multifactor calculation of costs and restrictions. The results make the possible full automation for definition well pad placement, later on, taking into account detailed topography and resource availability.

scholarly journals A Review of the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act as the Legal Framework for Future Development in the Northwest Territories

2002 ◽  
Vol 40 (1) ◽  
pp. 83
Author(s):  
Raymond E. Quesnel
Keyword(s):  
Northwest Territories ◽  
Large Scale ◽  
Oil And Gas ◽  
East Coast ◽  
Historical Analysis ◽  
Legal Framework ◽  
Tenure System ◽  
Petroleum Resources ◽  
Legislative Framework ◽  
Oil And Gas Operations

This article examines the current core legislation that governs oil and gas activity in Canada's North. While there has been increased industry interest in the Northwest Territories, there has thus far been a lack of actual oil and gas projects against which to measure the efficacy of the current regime in the context of northern development. An historical analysis of the legislative developments indicates that the northern regime formed the basis for the legislative framework now governing east coast megaprojects. The author evaluates the current basis on which rights are granted and recorded, the tenure system, the royalty regime, and the project approval process. He concludes that, while the northern regime is suitable for large scale developments, it may require certain changes to accommodate smaller, more conventional projects likely to be undertaken.

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