KAZAKHSTAN UPSTREAM OIL AND GAS technology and R&d ...

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Ranking the challenges
In a separate exercise designed by
roadmapping specialists from the University of
Cambridge, the 15 challenges were ranked
by technology experts, according to the
impact that addressing them could have on the
upstream oil and gas industry in Kazakhstan.
Each of the challenges was rigorously assessed
for its capacity to:
n reduce capex
n reduce opex
n increase production rate
n increase ultimate recovery
n reduce environmental and reputational risk
n improve personal safety.
Each of the challenges was scored on a scale
of 0 – 5 for each of the six criteria and the
total score divided by six to give an overall
score of between 0 – 5 for each one.
The ranking process, in fact, used a standard
industry financial model whereby the impact
scores reflect real monetary values, as given
in the table below. It is notable that these
figures represent the savings or gains likely
to be made across all of the fields, ie by the
industry as a whole, in Kazakhstan.
The results of the ranking exercise are shown
opposite. It may come as no surprise to find
that improved and enhanced oil recovery,
equipment and materials for sour service, and
drilling and well costs are judged to be the
most pressing challenges facing the industry
in Kazakhstan. These are followed by water
management, cold weather operations,
risk reduction in sour operations and the
management of sulphur.
Again, using the same financial model, the
overall impact scores may be converted
to real values. On this basis, addressing
successfully the challenge at the top of the
ranking could result in a financial reward to
Kazakhstan of somewhere in the region of
US$ 7.5 billion; the challenge at the bottom
of the list somewhere around US$2 billion.
IMPACT 0 1 2 3 4 5
Reduce capex US$
(millions)
No impact 2500
Reduce opex US$/yr
(millions)
No impact 500
Increase production rate
boe/d (thousands)
No impact 70
Increase recovery
boe (millions)
No impact 180
Reduce environmental risk No impact Slight Minor Moderate Major Gamechanger
Improve personal safety No impact Slight Minor Moderate Major Gamechanger
overcoming all 15 challenges could result in a
financial reward of tens of us$ billion.
Kazakhstan Upstream oil and gas technology and R&D roadmap