E&P companies will develop the designated oil fields in three stages, i.e. evaluation, discovery, and production and operation.
Searching for new blood into the veins of E&P companies, the discovery phase includes identification of untouched reservoirs for development, and catering to increasing energy demands. Advanced technologies are used for exploration, geological, geophysical, and geochemical analyses to assess the volume of reservoirs.
In the evaluation phase, the company studies how to produce oil from a newly-discovered field. The evaluation phase usually includes the following steps:
- To the determine the best location to drill a delineation well,
- To conduct various tests in order to assess the state of the oil reservoir,
- Estimation of the oil/gas in place,
- Estimation of exploitable oil/gas.
E&P is a capital-intensive business. A significant volume of money is needed to carry out drilling operation and technical services, and to set up platforms and other facilities to ensure maximum, efficient production of oil from the field. E&P companies need to:
Production and Operation
- Decide on investment;
- Draw up a number of development scenarios, assess the budget of each, and select the optimal scenario;
- Launch drilling operation;
- Determine the scope of operation on the platform and at the sub-basin (for offshore fields),
- Launch construction of facilities,
- Launch front-end engineering operation, continued with detailed engineering and construction,
- Manage companies involved in the project, and data on design and construction of the facilities.
Return of investment (ROI) takes place at this phase. The key objectives are to keep the flow of production at the maximum level and run seamless monitoring to ensure optimal expenditure, oil production, refinery and processing of oil, and its transportation to the next stage of the value chain.