WHAT WE'VE DONE
ADIL were working with their client, a petroleum consultancy who were acting as an intermediatory, to prepare the competent person’s report for the sale of significant resources off the west coast of Africa.
The package for sale contained four major assets in water depths of between 2,500 and 3,500 m, all in the exploration phase, with two having had exploration wells drilled. The seller did not have complete certainty about whether the assets were all gas producing, or if one or more of the assets contained oil.
All assets had been shown to have significant reserves. The seller wanted to fully verify these reserves before divesting the assets. ADIL were approached to provide support to the client due to their capability with facilities and asset development.
ADIL reviewed the available data and validated resource volumes and reservoir and fluid properties. Based upon this review, conceptual gas development options, including options for onshore or offshore LNG development and liquids processing, were identified and documented. The outline estimated costs and phasings associated with each of these conceptual development options was then described.
A small team of personnel undertook the study over a four-week period, utilising ADIL’s Accelerated Conceptual Engineering (ACE) process. ACE is ADIL’s process for quick, cost effective technical and economic evaluation to assist with upstream development decision making. It is an integrated engineering process, managed by experienced project and discipline engineers, supported by the use of specialist software tools.
ADIL’s primary focus was on verifying facilities costs. They did this using their ACE: Facilities tool, an industry standard facilities design tool used to develop complete technical definition and capital cost estimates for oil and gas development projects.
The flexibility of the ACE process allowed for iterations of the different concept scenarios to be developed throughout. For example, the team were able to look at a range of concepts to assess the potential for both gas and oil developments and provide inputs to project economics for each.
By using the ACE process alongside the team’s facilities and development expertise, ADIL was able to deliver credible concept development options to their client and ultimately to the seller.
The study assessed various concepts including onshore LNG and floating LNG technology, this assessing new ways to unlock value.