Marginal Oil Fields, Profitable Oil at Low Reserves : How?

Abstract

Abstract Fields with recoverable reserves of about five million barrels of oil are considered in Egypt as marginal fields. Economics of Egyptian marginal oil fields depend on non-traditional approaches followed in developing and operating such fields. The actual exploration, development and operating expenses and state fiscal terms were used to evaluate the sensitivity of the economic parameters of such marginal fields. The operator net present value (NPV) and internal rate of return (IRR) beside the government take are presented for different parameters used. The purpose is to make acceptable profits out of the marginal oil fields, for the mutual benefits of both the country and the investors.