Development of tools for assessing the profitability of the fund to improve the efficiency of managing base production facilities, including during the period of OPEC production restrictions

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Background. The events of recent years (limitation of oil production within the framework of OPEC) show us that it is necessary to develop approaches that will help to find the best options for operating existing fields, necessary to maintain and maximize the economic efficiency of the company’s projects.

Aim. Maximizing the economic efficiency of the company’s assets through the development and implementation of the Cost Pyramid methodology for assessing the profitability of all levels of basic production (well, well pad, cluster).

Materials and methods. In the process of analyzing the existing economic methods of assessment and reporting, it was found that only the levels “Well” and “Field” are provided with an assessment of economic efficiency. However, to improve the accuracy of the calculation results, it is necessary to develop a new methodology that allows you to evaluate the missing levels, for example, “Well pad” and “Cluster”. In order to realize this possibility, firstly, an analysis of the set of costs by items was performed, as a result, 2 new specific indicators were identified: semi-fixed costs for a well site, semi-fixed costs for a cluster. Secondly, the evaluation of injection wells has been added. On the basis of the developed Methodology, a prototype of a digital tool in the Python programming language was created, which can significantly reduce the calculation time.

Results. A methodology for the distribution of costs “Cost Pyramid” was formed and a prototype of a digital tool for assessing the profitability of the fund was developed, on the basis of which the growth potential of FCF (Free Cash Flow, free cash flow) was identified using the example of a number of operating fields.

Conclusions. The obtained results of the work confirm that the developed tool for assessing the profitability of the fund allows you to form a rating of unprofitable objects and focus optimization measures to maximize the FCF of the company’s projects, including within the framework of external restrictions.

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