Sakhalin Island Competitive Tenders

 

Sakhalin III and Sakhalin IV Tenders
 
Project Duration: July 1992 through 1996
Client: Russian Ministry of Natural Resources, Sakhalin Oblast Administration
Project Type: Project Management, Reserve and Economic Evaluation and Model Contract Creation
Evaluated Assets Value: Sakhalin III, Block A: NPV $2.9 billion (State Interest)
Sakhalin III, Block B: NPV 10 $9.3 billion (State Interest)
Sakhalin IV, Block A: NPV $1.45 billion (State Interest)
Sakhalin IV, Block B: NPV $1.03 billion (State Interest)
Project Description: This project was a part of an overall assignment from the Committee of Geology of the Russian Federation to oversee all aspects of the Sakhalin Island offshore tenders.

This project covers the following technical areas:

  • Geological Basin Analysis
  • Geological, and Geophysical Interpretation
  • Reservoir Engineering Analysis
  • Reserve Calculations
  • Model Contract Creation
  • Economic Analysis
  • Tender Round Promotion
  • Assistance in Final Contract Negotiations

The first phase of each tender round begins with a general data collection, digitizing and database operation. Fron these data, geological/geophysical and reservoir models are constructed to accurately predict hydrocarbon occurrence in the tender blocks. A calculation of possible recoverable reserves is then undertaken and appropriate development plans are created to allow for the blocks to achieve a calculated maximum efficient recovery rate.

Model contracts for each tender are developed taking into account the situations particular to each block. As the contract is being developed, a comprehensive economic model is run to test the contract terms using the reserves and development plans previously calculated.