Many fields judged to be marginal may have huge potential value if re-evaluated because of the variable nature of the key factors upon which that judgement has been made. Oil price volatility, improved technology and methods, changing standards, legislation and attitudes, continuing research, new investment are just a few of the fundamental characteristics of the oil and gas sector which is renowned for the complexity and scale of its investment decisions.
Marginal projects in which there is usually considerable ‘sunken cost’ can become investable if their lower risks can be leveraged to improve returns.
Re-evaluation to determine whether a more suitable development plan can attract financing is key to transforming the economics of marginal or stranded fields, maximising recovery from mature (‘late life’) fields or even kick-starting larger development projects with early production systems.
MFDevCo and its Consortium apply this approach to identify their projects and are able to manage those projects through their lifecycle from opportunity screening, suitability assessment and financing through engineering to production and decommissioning. The company welcome the opportunity to discuss how their approach can be applied to transform client assets.