The Study Of Technical Evaluation Methods For International Petroleum Exploration And Development Investment Projects

Technical evaluation method of international petroleum exploration and development investment projects is greatly important and useful for china petroleum companies to exploit international market. It provides a scientific base and technical supports for the decision-making of investment projects. The assessment of international investment projects is a brand-new study field for China oil & gas industry. The goal of investment project assessment is to learn its value, technical feasibility, bidding strategy and quoted price. Technical evaluation method is comprised of evaluation program, evaluation content and decision-making way. This study sets forth major tasks and general contents for each phase of evaluation process. The invest setting and the technical feasibility of exploration, development and economical benefit are demonstrated for different investment projects. Based on risk analysis, the decision-making way and investment strategy are studied for each project. Four innovative successes are achieved as follows. First, technical evaluation procedure and contents of international petroleum exploration and development investment projects are set up. Second, the technical evaluation methods are set up respectively for different international petroleum exploration and development investment projects. Exploration project assessment focuses on the resource potential and examines the optimal workload from the preferred prospect areas based on the study of technical feasibility of development and exploration and risk analysis. Quoting and investment decision-making are employed based on the economically optimized minimum workload. Development project assessment focuses on the reserves potential and its value. Technical demonstration is examined from the aspects of the reservoir description, development scheme, productivity construction, production and surface engineering. Integrated decision-making is accomplished considering theinvestment environment and risk analysis. Third, the uncertainty and risk in the project technical assessment are analyzed. Approaches are put forward to reduce the uncertainty and risk in OOIP estimation and reserves evaluation. The principle of cut-off value determination provides the reference for quick project evaluation. Reasons for the uncertainties in the reserve evaluation are carefully examined and technical measures are put forward to decrease the probability of incorrect evaluation. Fourth, evaluation parameter configuration system and integrated ranking decision-making methods based on hierarchy analysis and fuzzy mathematics are set up. Quantified decision-making evaluation for exploration and development projects are then accomplished under the uniform rule.This paper provides an approach to the quick filtration among projects in early evaluation period, and ways of technical and economic evaluation and scientific decision-making. It is a key technology in exploiting international market and makes the project assessment systemic, standardized, formulary and scientific. It will be further improved in the future with the progress of international oil & gas exploration and development market. The evaluation methods have been utilized to overseas investment projects of CNPC and are confirmed to be reasonable and successful in terms of oil production and economic benefits, such as in Block 5 Project of Oman, North Buzachi Project of Kazakstan, etc.