Multivariate Asset Assessment: Fast and Reasonable Decision on Oil Rims Development on the Example of a Unique Field in the Arctic Onshore.

Abstract

Abstract The key economic drivers for the development of several oil fields in the North Yamal-Nenets region were the commissioning of the main oil pipeline "Zapolyarye-Purpe-Samotlor", as well as a regional tax exemption regulation applicable to the mineral extraction tax, valid until the end of 2021. At the same time, the economic decline in 2008 and 2014 forced many oil companies to reconsider their production programs in the region. As a result, geological assessments and operational drilling programs in many fields were postponed, especially studies on complex development sites such as oil rims. As economic conditions for the oil and gas industry improved, the production activity began to increase. However, a continuation of proven work processes revealed disadvantages to meet short term economic targets. A quick assessment showed that a traditional approach to studying geological structures and assessing the current state of oil fringes would be too time consuming. Long study periods will lead to the fact that the main volume of oil will be extracted beyond the horizon of the tax exemptions, which would make projects uneconomical and jeopardizes the implementation plans for filling the new main oil pipeline.