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Managing Marginal and Mature Assets: A Complex Challenge
Managing Marginal and Mature Assets: A Complex Challenge
While Major and most Operators do very good jobs on developing assets until they became mature/marginal, taking the swept spots of the fields, Marginal / Mature Assets Management become really complex to opereate.
Then to identify and to produce the remaining potential oil from Mature/Marginal Assets undoubtedly requires specific Experience/Expertise to Manage and Take (More) Risks. To Take These Risks is necessary acknowledging that the success will rely on your commitment to Achieve your Goals associated to strong mitigation plans to minimize the identified Hazards/Consequences (including Financial ones).
With Baldenco SAS as your partner, you can better navigate the complexities of mature asset management and achieve sustainable successes.
Your actual and future Mature Assets Still Have a Lot to Deliver even in Challenging Oil Environment, with sound Operation / General Management strategies. We trust we can and will help you to succeed to do so under a “Keep it simple”, Pragmatic and Cost Efficient Win-Win agreement
Baldenco Added Value Exemple
Baldenco Added Value Exemple
Proposed Areas for Advisory and Recommendations
Proposed Areas for Advisory and Recommendations
Mature and marginal fields are complex assets to manage and optimize. One key competence to unlock opportunities is the attitude and capacity to take, manage, and mitigate risks. Baldenco SAS proposes to advise, as an independent consultant, your company for the optimization of your mature/marginal E&P business/assets management.
•Reviewing and Optimizing Business Plans: Evaluate and enhance your 3 to 5-year business plans, ensuring your company's decision criteria remain fundamental steps for success.
•Identifying and Ranking Opportunities: Pinpoint opportunities and assess associated risks to prioritize effectively.
•Creating Integrated Plans: Develop holistic strategies to take calculated risks, incorporating robust mitigation plans.
•Assistance with Strategy Implementation: Support the implementation of optimal strategies at optimal costs (OPEX and CAPEX).
5-Year Business Plan Key areas:
5-Year Business Plan Key areas:
Optimization of Existing Wells and Reservoirs: Implement inovative strategies for barrel chasing and reducing flared volumes to offset the decline and maximize production.
Optimal Monetization of Assets: Identify and eliminate barriers (e.g., facilities bottlenecks, pressure and fluid constraints) to planned development projects and to ensure optimal asset monetization.
Unlocking Full Potential of Assets: Make both old and new opportunities visible, facilitating the conversion from Resources to Reserves and unlocking the long-term potential of assets.
Transition from Bespoke Projects to Bundled Programs: Adopt area development strategies to efficiently monetize marginal resources through bundled programs.
Innovative Production Methods: Implement proven technologies and innovative plans to enhance exisiting production efficiency.
Enhanced Oil Recovery (EOR): Propose EOR technology to improve ultimate recovery in oil reservoirs.
Clear and Measurable Goals
Clear and Measurable Goals
We will target to achieve within the first 12 to 24 months of Baldenco SAS collaboration with your company and for your selected Mature Fields some of below objectives:
Managerial and Operational :
Increase base production by 5 to 15%: Enhance competitiveness by increasing the base oil production by 5 to 15% while maintaining and optimizing the associated production plateau.
Reduce flaring and/or Flared Gas per barrel: Implement strategies to reduce emissions and maximize the efficiency of flared gas per barrel of oil, thus contributing to more sustainable management.
Optimize operational costs by up to 20%: Identify and implement opportunities to reduce operational costs by 10 to 20%, ensuring better profitability and sustainability.
Financial Strengthening and Asset Valuation
Increased self-financing capacity: Develop and strengthen the self-financing capacity from existing wells for future (re)development projects.
Asset valuation: Increase the net present value of assets by at least 10%, ensuring sustainable growth and increasing value for investors.
Dividends for shareholders: Maintain and develop associated dividends for shareholders, ensuring an attractive return on investment.
Strategic Planning and Business Continuity
Implementation and optimization of the business continuity plan: Ensure the company’s resilience to challenges and opportunities, guaranteeing the sustainability of operations and business continuity.
Executive Business Plans: Comprehensive and Holistic Approach
Executive Business Plans: Comprehensive and Holistic Approach
We recommend considering executive business plans holistically, organized in phases according to each asset and the company’s strategic objectives and executive decision criteria as :
Cash Flow 3 to 5 years
Ability to Accelerate Development Delivery (Production Increase / Reserves Uplift)
Key development Risks Management
NPV / Dividend
Execution Risk Management including Optional Back-u and Continuity Plans
Action Plan in Phases
Level #1 Strategy : In coordination with OPCO Management and Operations Teams, identify, prioritize, and deploy optimal proactive (and corrective if necessary) efforts to create maximum operational value within the first 12 to 24 months.
These actions represent the strategic Phase 1 vision, focusing on "quick strike-high impact" opportunities to improve operations towards optimum production, operational expenditure reduction (Opex), enhancing self-financing capacity and dividend optimization.
Level #2 Strategy: Develop an Aligned Strategic Vision in collaboration with OPCO Management and Operations Teams, create an overarching improvement strategy for mid-term (Phase 2) and long-term (Phase 3) goals.
Continuously identify, prioritize, and scope opportunities for improvement in line with the company's business plan.
Foster Creativity and Innovation: Go beyond incremental improvements by focusing on creative and innovative processes.
Implement Cross-Functional Improvement Projects: Undertake larger, cross-functional projects to establish best-in-class practices, resulting in significant breakthroughs in operating performance.
Strategic Auditable Deliverables Objectives :
Strategic Auditable Deliverables Objectives :
Key Goals and Objectives to be set and ranked subject to Decision Critiria Prioritization:
Reduce Flaring and Optimize Flared SCF/Barrel Oil:
Goal: Implement strategies to decrease flaring and improve the efficiency of flared gas per barrel of oil.
Impact: Reducing flaring minimizes environmental impact and enhances resource utilization.
Prioritize Self-Funding Projects:
Goal: Focus on projects that can be self-funded to ensure financial sustainability and profitability.
Impact: Prioritizing self-funding projects helps in maintaining cash flow / reducing dependency on external financing and Optimizing Dividends Distribution to Shareholders.
Leverage Existing Assets and Optimize Production:
Goal: Maximize the potential of existing assets and enhance current production.
Key Message: Deferred Barrel is a LOST Barrel.
Impact: Leveraging existing assets ensures efficient resource utilization and increases production output.
Reduce Costs for Self-Funding and Improve Sustainable Dividends:
Goal: Identify opportunities to reduce operational and capital costs.
Impact: Cost reduction leads to better financial health and enables sustainable dividend payouts.
Focus on Delivery as Planed (or better) and Payback Times:
Goal: Improve delivery schedules and shorten payback periods for projects.
Impact: Focusing on these aspects enhances project efficiency and accelerates return on investment.
Optimize Opex per Barrel:
Goal: Implement measures to reduce operating expenses (Opex) per barrel of oil.
Impact: Lowering Opex improves the profitability of each barrel produced.
Optimize CAPEX per Developed Barrel:
Goal: Ensure that capital expenditures (CAPEX) are optimized for each developed barrel.
Impact: Efficient CAPEX management ensures that investment yields maximum returns.
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