3 Expandable SPE

7/31/2019 3 Expandable SPE

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Eni Corporate University Scuola Mattei

Agenda

Technological introduction Reference scenario Case A Expandable Technologies: dual zone

application

Case B Expandable Screen in horizontal well Case C Expandable Casing Conclusions

Technological introduction Reference scenario Case A Expandable Technologies: dual zone

application

Case B Expandable Screen in horizontal well Case C Expandable Casing


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SOLID CASING EXPANSION

Cased hole remediationsystem for casing repair, perforationshut- off, corroded casing, ...

Blank pipes coupled with

expandable screens


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expandable screens



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expandable screens



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SCENARIOS HYPOTHESIS

Inflation rate 2,5%

WACC 8,1%Income Tax 36%

Royalties 8%

R&D Investments (K ) 570

Depletion rate 10% 12% 12%(+1%/a)

Gas price ($/MMBTU) 1,5 1,25 1

Oil price ($/bbl) 24 21 18

Exchange rate /$ 1,05 1,17 1,25


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Case A Expandable Technologies in dual zoneapplication

Insufficient gravel quantity

Abandonment of main well and side-tracking

Expandable Technologies as alternative to Gravel PackCASE A: ADDITIONAL HYPOTHESIS

Production (Sm 3 /g) 670.000

Productivity increase 20%

Workover cost (K$) 1.250Probability of shorter longevity

(need for a workover on 10 th year)20%

Operating costs ($/boe) 2,2


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Case A Economic Evaluations

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013-200

0

200

400

600

800

1.000

1.200

1.400

D i f f e r e n

t i a

l C a s

h F l o w s

( K )

Case A - Differential Cash Flows

Best Case Normal case Best CaseWorst Case

Normal case

NPV @ 10 anni 3.800.000


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Case B Economic Evaluations

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1.000

1.500

2.000

2.500

3.000

D i f f e r e n

t i a

l C a s

h F l o w s

( K )

Case B - Differential Cash Flows

Worst Case Normal Case Best Case

Normal case

NPV @ 10 anni 9.500.000


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Case C Solid Casing Expansion

Need for insulating the upper interval (cladding)

No production increase

Unique differential Cash flow is cost saving of

850,000$

Need for insulating the upper interval (cladding)

No production increase


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Adoption of Expandable Technologies at 10 years

Development E.T. total

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

D e v e l o p m e n

t E

. T .

t o t a l i

Tipe A Tipe B Tipe C Tot ENI

Development E.T. per year

0

1

2

3

4

5

6

7

8

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

D e v e

l o p

m e n

t E

. T .

p e r y e a r

Tipe A Tipe B Tipe C Tot ENI


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Synthesys within Eni group

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

10.000

20.000

30.000

40.000

50.000

60.000

D i f f e r e n

t i a

l C a s

h F l o w s

( K )

ENI tot - Differential Cash Flows

Worst Case Normal Case Best Case

Normal case

NPV 10 years 163.300.000


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Synthesys within Eni group

Normal case: NPV 10 years

After taxes 163.300.000

No taxes 277.000.000

This conclusion might be conservative.A major E&P company announced adouble value creation (320 M ) withalmost the same number of installations


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Conclusions

Main features of Expandable Technologies: Increase in production due to larger ID downhole Cost savings in comparison with alternative solutions Though, need to confirm technologys longevity Anyway, Expandables are already considered a

breakthrough technology The most ambitious application in drilling is the

development of the monodiameter well-bore

Increase in production due to larger ID downhole Cost savings in comparison with alternative solutions Though, need to confirm technologys longevity Anyway, Expandables are already considered a

breakthrough technology


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Thank you

for your attention

3 Expandable SPE

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