A Business Case for Seismic Data Transmission by Satellite

Abstract

Abstract How can we still further reduce costs for oil field services withoutdegrading data quality? This is question of paramount interest to the entireoil exploration and production industry. It has been estimated that fully 25%of oil exploration costs are associated with seismic services. A technologywhich has created much discussion and excitement in the seismic industry forthe last several years has been satellite transmission of seismic data fromacquisition vessels to onshore processing facilities. This paper will explorethe issues surrounding the viability of seismic data transmission via satellite(SDT) and will show the very real cost savings and exploration benefits whichshould be realized by this emerging technology. The value of 3-D seismic - an update One of the ways SDT adds value to E&P operations is by deliveringseismic data to the decision-makers more quickly. This faster delivery isdependent on the underlying value of the 3-D surveys themselves. Aylor hascarried out and published previous work that characterizes the present value of 3-D seismic to the oil industry. This work has documented the value of anaverage exploration 3-D seismic survey acquired between 1990 and 1994, conducted across an area previously explored using 2-D techniques. This average'90-94 exploration 3-D survey improved the exploration potential of an areafrom 3.4 prospects with a 16% chance of success to one with 4 prospects with a23% chance of success. To derive the value of this improved explorationsituation, a very typical international venture has been financially modeled. This model provides for 24 producing wells at 7.5 MMBOE per well, produced over19 years, $160 million facilities costs, and a not uncommon, "mature area"foreign tax situation taking into account taxes, royalties, production sharingand state participation.