GFE mini Field Development Plan

January 2019
Kurnia Basin Block A

by
Amir Izzat Sendijins 24189
Mohd Shafiz Bin Martin@Mohd Shafiq 24188
Amir Ikram 23764
Khalid Mohamed Ahmed 24086
Khalid Saad Khalid 18414

Supervised by
Mdm. Raja Rajeswary
 TABLE OF CONTENTS

1. COMPANY PROFILE
1.1Scope of Work
2. EXECUTIVE SUMMARY

3. INTRODUCTION
3.1
4. RESERVOIR ENGINEERING
4.1
5. PRODUCTION ENGINEERING
5.1
6. ECONOMIC ASSESSMENT
6.1 Cost
6.2 Gas Production
6.3 CAPEX
6.4 OPEX
6.5 Revenue & Net Profit
COMPANY PROFILE

G1 Oil & Gas was established in 2015 as a service provider and agent for representing
international oil and gas service-companies in Malaysia. G1 Oil & Gas Services have strong
QHSE policies and this is an integral part of our day-to -day work. The team in G1 Oil & Gas
consist of experienced sales personnel from the oil & gas industry, as well as strong technical
specialist from the industry. Our products and services include software, hardware and
consultancies. G1 Oil & Gas Covers the entire Asia Pacific region and provides support and
services wherever needed.

Amir Izzat Sendijins (Leader)

Mohd Shafiz Bin Martin@Mohd Shafiq (Production Engineer)
Khalid Mohamed Ahmed (Reservoir Engineer)
Amir Ikram (Economist)
Khalid Saad Khalid (Reservoir Engineer)

1.1 scope of work

i. Leader have to monitor his team

ii. Reservoir Engineering have Acquire the reservoir data and run Prosper, Mbal
iii. Production Engineering have to run GAP and optimize the production system
iv. Economic Analysis. Evaluate the economics
EXECUTIVE SUMMARY

This report is to briefly show the technicality to execute a Field Development Plan for Block
A in Kurnia Gas Field by G1 Oil & Gas. The block consists of four reservoir/tank that are name
Angsa Lower, Angsa Upper, Angsa Kurus and Angsa EW. The company GSA with the client
Mr. Kong has come to an agreement of maintaining 880,000,000 daily gas production for 2.5
decades.

G1 Oil & Gas had decided to plan the production system and choose the most economical
Capital Expenses and Operating Expenses to achieve the maximum profit before running the
development of the well. Therefore, we had done two cases to determine the best production
system setup to perform constant production of 880 MMscf/day of gas for 25 years. First case,
we have decided to produce gas from all reservoir which is reservoir Angsa Upper, Angsa
Lower, Angsa Kurus and Angsa Ew. Second case, we have decided produce from two reservoir
which is Angsa Upper and Angsa Kurus, where we tried to neglect high Carbon Dioxide
content from reservoir Angsa Lower and Angsa Ew to test the economics of this plan. Thus, in
this report we will only considered one of these cases to run. All cost estimation of the cases
will be from the year 2019 to 2044 are recorded in this documentation.
6. ECONOMIC ASSESSMENT

6.1 Cost
The cost that were given is fixed to ease our calculation. The crucial part of this is the
CAPEX, OPEX and Tariff.
All the cost includes:
1. Pipeline
2. Basic Separation System
3. Compression System
4. CO2 Removal Unit
5. Drilling
6. Well

CAPEX Grade Service Capacity / unit Cost USD Mill

Basic separation system All Onshore Not applicable 5
Compression system All Onshore 500 MMScfd 15
CO2 removal unit Normal Outlet max CO2 15% 500 MMScfd 12
CO2 removal unit Advanced Outlet max CO2 10% 500 MMScfd 20
CO2 removal unit Premium Outlet Max CO2 2% 500 MMScfd 30

CAPEX Rig rate (USD)

Drilling 200k/day

Yearly OPEX USD mil/unit per Year

Well Maintenance 0.2 per well
Basic separation system Maintenance 20 per unit
Compression system Maintenance 25 per unit
CO2 removal unit Maintenance 40 per unit
Pipeline Maintenance 5 per pipeline

Tariff guideline Min Max

Pipeline cost 20% Gas & Condensate price
Prosessing cost 50% Gas & Condensate price

6.2 Gas Production

The prediction period from 01/01/2019 to 01/01/2044 are 9131 days in total. In order to make
it more practical, yearly assumption were made by convert days to year for 2.5 decades.
Then, we can estimate the revenue obtain from the operation.
The Total Gas Production:
6.3 Capital Expenditure (CAPEX)
The tubing size of the wells are determine by using Prosper Software. Thus, the specs have
been fix. For C02 > 35%, as seen in well AA, it requires to use Duplex Chrome grade. The
cost are calculated as such:
Cost = Depth x Weight x Cost/Unit x Unit
 = 3000 x 7.78 x 5 x 7
= $816,900.00

Pipeline size have been calculated to optimize the production and portrays it by applying Gap
Software. The pipeline were chosen from offshore service because it is located on the sea
bed. The requirement for the pipeline grade is Carbon Steel CS since we considered to have a
carbon dioxide removal before the separator and the cost are calculated as below:
Cost = Cost/Unit x Weight x Length
= 4 x 119.03 x 935,039.40
= $445,190,959.13

The facilities including Basic Separation Unit, Compression Unit and CO2 removal Unit are
needed. Two compressors needed to compress gas of 880 MMscf and CO2 removal Unit are
used to remove CO2 production. This is due to customer requirement of only accept CO2
with 3% mole.
Drilling cost for 30 days and 35 wells calculated as part of CAPEX.
Total Cost = No of wells x Operations x Rig Rate
= 28 x 30 x $200,000.00
= $168,000,000.00

Total Capex = Facilities Costs + Well Costs + Pipeline Costs + Drilling Costs
= $665,086,167.13

6.4 Operating Expenses (OPEX)

Throughout 30 years of ongoing project, operational cost including maintenance had to be
considered. This cost are significant for the revenue and profit for the entire project. The
importance machines that had to be maintain includes, the well, basic separation system,
compression units, CO2 removal unit and pipelines. Hence, the cost below.
Cost = Unit x Price
= 2 x $20,000,000.00
= $40,000,000.00

6.5 Revenue & Net Profit

The gas production rate is 880 MMscf/day, the amount had to be multiply with 365 days to
convert to year in order to calculate the revenue. The OPEX, CAPEX and Tariff are
calculated the same way to get the profit margin. Hence, 30 years of cost evaluation had been
calculated and tabulated.
Net Profit = Total Revenue – OPEX – CAPEX – Tariff