Transcript Document 7859358

Scuola Enrico Mattei
Master Medea
Academic Year 2003-2004
-MultiPhase Boosting Technolgy –
Technology Economic Evaluation
Group members:
Silvia Fazi
Mirco Gastaldello
Dario Li Gioi
Massimo Stolzuoli
Tutors:
Maurizio Granato
Nicola De Blasio
Alberto Marsala
Giorgio Vicini
San Donato Milanese, 28th June 2004
Eni Corporate University
Scuola Mattei
Simona Varrasso
Double Screw Pump Technology
Produce at Lower Costs:
• Reducing the Export Pipelines
• Using the Existing Facilities
Increase Production:
• Wellhead Back Pressure Reduction
• Recovery Factor Increasing
Eni Corporate University
Scuola Mattei
Basic assumptions
٧ R&D total expenditure: 33.5697 Mln €
- R&D Off-Shore share: 63.1%
since 1985
- R&D On-Shore share: 36.9%
٧ WACC: 8.10%
٧ Inflation rate: 2.50%
٧ Oil prices (@2003): 18 – 24 $/bbl
٧ Gas prices (@2003): On-Shore: 1.99 – 2.65 $/Mbtu
Off-Shore: 2.13 – 2.84 $/Mbtu
٧ Electricity prices: correlated to gas prices
٧ Technology life: 15 years
٧ Linear / quadratic trend hypothesis for breakeven analysis
Eni Corporate University
Scuola Mattei
On-Shore Field
Mature technology
ENI’s share: 50%
Application life: 4 years
Differential analysis between pump enhanced production and normal
production
 NPV (ENI’s share):




1.65 Mln €
On-Shore Field
- oil price@24$/bbl: 2.25 Mln €
- oil price@18$/bbl:
Innovative application
ENI’s share: 70%
Application life: 9 years
Differential analysis between pump enhanced production & gas-lift
production
 NPV (ENI’s share):




8.255 Mln €
- oil price@24$/bbl: 13.062 Mln €
-
oil price@18$/bbl:
Eni Corporate University
Scuola Mattei
15 year technology life Cash Flow
On-Shore Field (hp: linear trend)
NPV@18$/bbl: 2.13 Mln €
NPV@24$/bbl: 11.73 Mln €
Mln €
4,5
3,5
2,5
1,5
0,5
-0,5
Oil price@18$/bbl
Eni Corporate University
Oil price@24$bbl
Scuola Mattei
18
20
15
20
12
20
09
20
06
20
03
20
00
20
97
19
94
19
91
19
88
19
Year
19
85
-1,5
(hp: linear trend)
15,00
10,00
5,00
-10,00
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
-5,00
2005
0,00
2004
Combined NPV (mln €)
Break Even On-Shore
Year
-15,00
-20,00
-25,00
Break Even@18$/bbl
Oil price@18$/bbl:
number of wells: 27
year: 2017
Eni Corporate University
Break Even@24$/bbl
Oil price@24$/bbl:
number of wells: 17
year: 2012
Scuola Mattei
15 year technology life Cash Flow
Off-Shore Field (hp: linear trend)
NPV@18$/bbl: 91 Mln €
NPV@24$/bbl: 168.35 Mln €
27
25
23
21
19
17
15
13
11
9
7
5
3
1
-1
-3
Oil price@18$/bbl
Eni Corporate University
Oil price@24$/bbl
Scuola Mattei
18
20
15
20
12
20
09
20
06
20
03
20
00
20
97
19
94
19
91
19
88
19
19
Year
85
-5
Mln €
(hp: linear trend)
150,00
100,00
50,00
20 18
20 17
20 16
20 15
20 14
20 13
20 12
20 11
20 10
20 09
20 08
20 07
20 06
-50,00
20 05
0,00
20 04
Combined NPV (mln €)
Break Even Off-Shore
Year
Break Even@18$/bbl
Oil price@18$/bbl:
number of wells: 7
year: 2007
Eni Corporate University
Break Even@24$/bbl
Oil price@24$/bbl:
number of wells: 5
year: 2006
Scuola Mattei
Conclusion
The technology has achieved:
 Improvement of oil and gas recovery rate
On the other hand:
 Recovery of oil and gas from depleted fields
 Less
requirements
in advantage
terms of facilities
and pipelines

Reduced
competitive
on the market
 Quick recovery of the money invested
Thank you
Eni Corporate University
Scuola Mattei