• 13 Oct 2014

Oil Voice publishes study – De-marginalising small oil fields

I Stock Photo Oil Platform Gm157439804 9028232 Cropped

The third in a series of studies on behalf of ABT Oil and Gas, the latest article investigates how movements in oil price and development costs impact small field viability.

Highlights include:

  • Study demonstrates the precarious economic position of marginal oil and gas projects; fields containing as much as 19 million boe struggling to break even at $90 per boe using conventional production systems, let alone achieve necessary hurdle rates
  • Viability of fields containing 25 million boe, the average size of recent discoveries in the North Sea, is extremely vulnerable to modest cost increases or falling oil price
  • Break-even reserve size is far more sensitive to costs than oil price – the answer to marginal field development is long term cost reduction not rising oil prices
  • ABT Oil & Gas’s SIFT reduces costs by some 60% on a model 10 million boe field and lowers field break-even size to below 5 million boe
  • ABT Oil & Gas are able to transform the economics of small field development and unlock the 1.25 billion boe contained in 105 marginal fields in the UKCS
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