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Title: Risk assessment and management in IOR projects

Conference ·
OSTI ID:372418

The application of IOR techniques is one of the investment opportunities open to Exploration and Production companies. A project will only go forward if the perceived balance between the rewards and the risks is acceptable. IOR projects may be ruled out because they are considered to involve significantly higher risks than conventional developments. Therefore, some means of evaluating the actual level of risk may be required if the full economic benefits from IOR techniques are to be realized. Risk assessment is a key element in safety cases, where a well-established methodology for quantifying risk exists. This paper discusses the extension of these methods to IOR project risk assessment. Combining reservoir and IOR technique uncertainties with their impact on project performance allows project risk to be better quantified. The results of the risk assessment are presented in terms of a risk-reward diagram that plots the probability surface for possible project outcomes as a function of NPV (reward) and exposure (risk).

OSTI ID:
372418
Report Number(s):
CONF-9410272-; TRN: 96:024149
Resource Relation:
Conference: SPE Institute of Petroleum meeting, London (United Kingdom), Oct 1994; Other Information: PBD: 1994; Related Information: Is Part Of European petroleum conference: Proceedings. Volume 1; PB: 607 p.
Country of Publication:
United States
Language:
English