Post on 03-Jan-2022
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Implementation of an Exploration Portfolio Management PlatformYousef Al-SalaliSenior Petroleum Engineer - Exploration GroupKuwait Oil Company (KOC)
Authors: Yousef Al-Salali and Talal Al-AdwaniCo Authors: Muhammad Al-Ajmi, Haifa Al-Bader, Abdulaziz Sajer, Sunil Singh, Waleed Morsy, Abdullah Al-Hamad, Hanan Al-Kandari and Mohammad Al-Bahar All from Kuwait Oil Company, Kuwait
• Currently, KOC have High Standards Exploration Portfolio Management Platform to Achieve Primary Strategic objectives of Production & Reserve Growth Targets.
Exploration developed an international system customized for Kuwait needs.
This System Optimize the way to Achieve Strategic Targets based on demand and needs.
Add full value of EG production potential to drive production growth for Kuwait.
Source: 2011-2016 Several Projects and & Workshops - PE & DP Teams Geoknowledge/SBC experts
EXPLORATION PORTFOLIO MANAGEMENT
PORTFOLIO MANAGEMENT WORKFLOW
REVIEW PLANSELECT PRIORITISE
INVENTORY PRIORITISED LIST PROJECT BASED PORTFOLIO*
2019
2020
2017
2018
Leads &prospects
Drillableprospects
Sequenceddrillable prospects
Sequencedprojects
REVIEWED INVENTORY
2015 2020 2025 2030
IMPLEMENTATION
ACTION PLAN
KOC has developed a strategic Portfolio Management approach laying the foundation for driving a step change in Kuwait’s future oil & gas production
REVIEWED INVENTORY
• Prospects Has been Reviewed and Reassessed based on International Standards
• Certified the Prospects Inventory by Reserve certifier.
Integrated Prospect Risk, Resource and Value Assessment Solution
G&G Data
Reservoir Data
Resources Results
Activities Schedule
Exploration Activities
Facilities
Appraisal
Production Activities
Net Cash Flows
Production
PRIORITIZATION
analytical prioritization framework that takes into consideration the strategic directions of the Exploration Group
PRODUCTIONCONTRIBUTION
ECONOMICRETURNS
Source: EG’s Portfolio Management Dashboard
The prospect inventory chart displays the inventory through all strategic dimensions
Prospect inventory chart
• Shows 4 dimensions in one chart Chance of success (vertical axis) Unrisked Recoverable resources
(horizontal axis) Net present value (bubble size) Property score (bubble colour)
• Shows risked resource isoline (orange) for the risked resource value set in the dedicated parameter.
Risked resourceisoline
Bubble size reflects NPV
Negative NPV Positive NPV
Source: EG’s Portfolio Management Dashboard
The profitability chart displays maximum capital requirement versus economic return
Profitability chart
• Scatters the prospects using the success case net present value (NPV) on the x-axis vs. success case profitability index (PI) on the y-axis.
• Shows the two reference lines for average success case PI and success case NPV.
• The prospects are represented by different icons depending on their land accessibility and H2S content.
High H2S content
Land accessYes
No
Exploration Portfolio Management Structure
EG EXECUTIVEMANAGEMENT
SYSTEM
TRAININGCOMMITTEE
ACTION PLANSTEERING
COMMITTEE
PMC1
PROGRESS REVIEW
PEOPLE DEVELOPMENT PORTFOLIO SUSTAINING
PORTFOLIOEXECUTION
ES FP2
PE FP2 EO FP2
GS FP2
PLANNING WORKGROUP
DP FP2
UH3 2
UH3 1UH3 3
PROJECT WORKGROUP (EXAMPLE)
UP-TO-DATE INFORMATION TIMELY DECISION-MAKING
* CARACAL : KOC/Exploration Portfolio Management System
Consistency is the key in exploration portfolio management
“Exploration is best managed by managing the exploration portfolio”
G. McMaster (1997) quoted by A. Milkov (2015)
“For the portfolio management to succeed, each prospect must be assessed consistently”
P. Rose & G. Citron (2000)
“Sound portfolio management reflects the choices that are made after understanding project interactions relative to goals”
J. Howell & J. DuBois (2003)
Objective: Consistent and universally adopted work process in KOC that yields objective and documented play and prospect evaluations which can be used confidently to prioritize future exploration plans
Acknowledgment
The authors wish to acknowledge gratitude to Kuwait Oil Company (KOC) and Ministry of Oil for granting permission to publish a paper. The authors also like to extend appreciation to all associated teams.
Conclusions
1Consistency
Ensuring all prospects are assessed consistently before entering the prospect inventory
2Strategic Fit
Ensuring prospects are ranked to reflect KOC strategic priorities and industry environment
3Exploration Management
Giving the Exploration Management Team easy and flexible access to all the information they required to make the best decisions on where to allocate resources to across the exploration portfolio
Key achieved benefits