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Petroleum Economics

Our Petroleum Economics experts operate at the heart of exploration and production viability. They offer our clients the comprehensive analysis and evaluation needed to decide how to best manage their assets.

Integral to the development strategy for all projects

Economic and commercial analysis is integral to every development project, vital to arriving at the best development strategy. Depending on a client’s needs, our specialists can also assist in helping ensure sustainable investment decisions are made.

We evaluate all economic opportunities and determine or audit reserves. Our clients receive a full valuation of individual assets, a group of assets, a company or portfolio in preparation for an IPO, M&A or third-party valuation.

We also perform an economic evaluation as part of our own studies to rank alternatives and determine whether a certain project can be defined as commercial. Economic evaluation is an integrated part of our Competent Person’s Reports (CPR) to determine commercial recoverable resources and field economic cut-off to define reserves.

Our work ranges from cash flow calculations to complex analysis involving tax, PSA, royalties and more. All inputs to the cash flow calculation can be evaluated and estimated from our internal project teams including CAPEX, OPEX, drilling cost, abandonment cost and production profiles. The evaluations can be performed before or including tax.

We possess our own software and technologies to support these services, but are also comfortable working with our client’s technology and models if required.

Quality assured economic evaluations, rooted in operational realities

Our Petroleum Economics professionals, like everyone else in AGR, follow our own ISO certified Delivery Process. On every project, this ensures a systematic approach, quality, transparent and traceable results and excellent interaction with our clients.

The specialists we provide have a strong understanding of development projects and operational challenges in the energy sector, including the quantification of risks and uncertainties of different branches of an outcome or decision tree.

Being part of the multi-discipline consultancy that is AGR, gives them a firm grasp of the realities and challenges faced by clients. Meanwhile, through our extensive data collected over many years, our clients can benchmark their project with others that have been completed.

Comprehensive risk analysis

We routinely construct a fiscal model for each project, applying thorough risk techniques, such as:

  • Multiple deterministic reservoir modeling to create ranges of uncertainty
  • Sensitivity analysis for a project proposal
  • Decision tree analysis
  • Project optimisation techniques through analytical modeling
  • Gap analysis at a company strategy level or at a project technology level
  • Definition of boundary conditions (scope of responsibilities)
  • Stakeholder analysis
  • Decision quality analysis
  • Establishing technical limits and implementing new technologies
  • Portfolio risk analysis

Questions? Get in touch

    Case studies

    AGR conducts Reservoir Modelling on OKEA’s Draugen field


    2 min read
    AGR’s permanent in-house subsurface team was engaged to build this full field model. The design of the model was set...

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    Chemical Enhanced Oil Recovery support with local skills development focus enables sustainability of regional E&P industry


    6 min read
    In a challenging international aid effort to revive the oil industry of Sudan, AGR was appointed by International Petroleum Associates...

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    AGR provides Enhanced Oil Recovery evaluation for development plan of several heavy oil fields


    3 min read
    AGR’s Reservoir Management & Subsurface team was engaged to provide subsurface and reservoir model evaluation needed to support a thermal...

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    AGR develops perforation strategy for injecting CO2 into saline aquifer


    2 min read
    AGR’s Reservoir Management team combines nodal analysis with thermal fracturing models to develop a perforation strategy for injecting CO2 into a...

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    AGR verifies reservoir performance claims for investor


    2 min read
    AGR’s analysis gave the client greater security to make a considered decision regarding an opportunity. A non-operator investor group engaged...

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    AGR doubles production in mature oil field in Spain


    1 min read
    The client benefitted from AGR identifying significant missed-pay targets in mature production field. The Challenge AGR’s Reservoir Management & Subsurface...

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    See more case studies