Login

www.oilsim.com

Learning Cycle

Additional knowledge/skills

Environmental issues Team work and negotiation Critical decision making, analytical

skills, multi-tasking Learn through experience Economically viable volumes-

reducing uncertainty Return on Investment Function appreciation

Money and Credibility

You start with $250 millionYou can apply for more money later.

Create valueMeasured by the net value of the oil and gas fields discovered MINUS all costs involved.

Correct answers and sensible decisions are awarded with CPs

Complete Value Chain

Upstream

Oil and Gas Value Chain

OilSim day 1

Licence award,spread risk-negotiationsPre-concession work

Gravimetric data,

Magnetic data

Enviromental data,

Geological maps

2D seismic surveys

Task 1 Task 2

1 st concession round

3D seismic maps

Task 3

Today’s Challenges

Gravimetric surveys Gravimetric surveys show the gravity

in the sub-surface. Measured by airborne sensors.

Sedimentary rocks have lower densities than the surrounding crystalline rocks. Low gravity means high probability of a basin below.

Low gravity are basins. High gravity are crystalline rocks

First task

Challenge: Find three sedimentary basins in the area. Basins are sedimentary rocks in the deep subsurface where oil and gas has been generated.

Procedure: Buy and study magnetic and gravimetric surveys; and to submit the coordinates, column and row number for each basin centre.

Gravimetric surveys

Gravimetric survey:South-east quadrant

Magnetic surveys

Magnetic surveys show similar information as gravimetric surveys. The sedimentary rocks in the basins have a lower concentration of magnetic materials than the surrounding crystalline rocks.

Sedimentary basins are the areas with the lowest magnetic field.

Basins have low magnetic field Non-basins have high magnetic fields.

Magnetic Surveys

Magnetic survey:North-west quadrant

Centre may not be the same

Example:Top basin on

both maps Calculate the

midpoint between the gravimetric and magnetic centres found

= C55 and R105

C50

R100

C60

R110

Finding the Midpoint

Centre Midpoint calculation 3 centres – one Centre

midpoint for each basin Example: C55, R105 Solve before deadline. All

submissions are evaluated after the deadline (and not before).

You may get 0-100 CPs. All three centres must be located to get full CPs.

Task 1 solved

All teams have submitted their answers. Basin centres are located.

Message in Inbox. All teams have answers and CPs awarded.

OilSim day 1

Licence award,spread risk-negotiationsPre-concession work

Gravimetric data,

Magnetic data

Enviromental data,

Geological maps

2D seismic surveys

Task 1 Task 2

1 st concession round

3D seismic maps

Task 3

Today’s Challenges

Sedimentary basins may contain oil and gas.

The government has decided to put the blocks around one of the basins on offer.

Challenge: Identify the 3 most promising blocks and offer an amount for each of them.

1. SOURCE ROCKwhere organic material is put under sufficient pressure

2. MIGRATION ROCKwhere hydrocarbons are driven through

3. CAP ROCKImpermeable rock that stops migration of hydrocarbons 4.

PROSPECT

Source and migration

(c) OLFAnticline trap

Fault trap

Stratigraphic trap

Salt dome trap

Geological “pockets”, that might contain hydrocarbons.

Traps

Red areasYou will not be allowed to bid, drill or operate in any of the red areas (environmentally sensitive areas) Green areasBlocks in area may be awarded.

Is there a sedimentary basin and a migration route into the prospects in the area?

Is there porous reservoir rock in the area, so that the oil or gas can be stored?

Is there a sealing rock in the area, so that the oil and gas can be trapped?

If all are positive, then green If some negative, then orange If mostly negative, then red

Layer 3 Eocene1500m below the surface

Layer 2 Paleocene2500m below the surface

Layer 1 Cretaceous3500m below the surface

CRS. Common Risk Segment surveys tell you about the probability of a structure in the block/cell containing

oil or gas

Surface

2D Seismic surveys Traps can be found with seismic surveys 2D seismic survey is a cross section of

the geological layers along either a column or a row.

2D seismic surveys are used for locating prospects.

Unprocessed Processed

Interpreted Red is top of the sealing rock

Green is top of the reservoir rock

2D Seismic in OilSim

Anticlinal traps

Leakage

Sealant rock

Leakage?

Buy 2D seismic from the survey

shop

What type of data do you want? Columns or Rows Unprocessed or processed

data Interpreted or not

Only buy maximum of 2 block of data at a time to speed

up processing

Red circles – navigate through the 2D seismic

Yellow square – Row 1 from Column 1-56

View the Seismic

Column

Row

Prospect, ReservoirBasin,Source

Minimum bid is $250K Maximum bid is $7.5M Enter numbers without commas

(ex: 250000) You will bid for 3 licenses but

each team will only be awarded one license

Highest bid wins the license If two teams bid the same, the

team with the most CP’s gets it Random license awarded if none

of your bids are high enough

Submit your bid before the deadline!

Recap on Task 2

Environmental Sensitive Areas map to see which blocks to avoid

Common Risk Segment surveys to see which blocks to examine closer

2D surveys seismic to identify which ones have the most (big) structures

Remember to submit 3 bids

Message sent to all teams with the results

Credibility Points are given for prosperity of the blocks you bid for

Every team has got one exploration license

Licence award,spread risk-negotiationsPre-concession work

Gravimetric data,

Magnetic data

Enviromental data,

Geological maps

2D seismic surveys

Task 1 Task 2

1 st concession round

3D seismic maps

Task 3

Today’s Challenges

HQ is happy with the license awarded. Challenge: Farm-out minimum 20% from

your license – and farm-in as much as you can in other good licenses.

Acquire 3D Seismic interpretations for the block you operate, and study the results from the licensing round

Get others to invest 20% or more in your license – you can show/send 3D seismic

Real 3D Seismic

Shows the subsurface structure in a cube.

Layer 1 Cretaceous

Layer 2 Paleocene

Layer 3 Eocene

Partnerships

Spread the risk: e.g Investing in other blocks divides the risks amongst all partners, much more preferable than keeping 100% of one field and all the risk.

Increase probability of profit: investment in only 1 field which could be a dry prospect is possible, whereas the likelihood of investing in 5 fields which are all dry is unlikely.

Licences

Enter the percentage and total amount for have agreed to offerMinimum $100,000 per %Add a message to the sellerPress “Send offer”

Farm-in

When a team receives a Farm-In offer to appears under Financing. This is where a team can receive finance or money for a % of their own blocks

Farm-in

Farm-in License OWNER

decides whether to ACCEPT or REJECT the offer

Partnerships established every time a license owner accepts an offer.

Overview: On the main page, you can see all licenses. 1) licenses you operate, 2) licenses you have invested in, and other licenses.

All your farm-in offers to other teams are shown under “Investing” on the right-hand side of the homepage . This is where a team offers investments to other teams for a % of their blocks

Farm-in

Partnerships

Partners pay a proportional share of all future costs

Partners receive a proportional share of the net proceeds from oil and gas

The operator team makes all decisions regarding drilling

Teams can farm-out up to 70% of licence

Operators must keep 30% of licence