Economic evaluation modeling of a gas field for effective reservoir management in the Niger Delta, Nigeria – A. J. Ilozobhie and D.I. Egu
Detailed sensitivity analysis was carried out in marginal field located onshore Niger Delta, Nigeria with a view of reassessing its viability. Three (3) scopes or models were used with the parameters; cost of drilling each well [well cost], cost of well maintenance [fixed cost], operation, transportation, and compression cost [variable cost] and gas price. Results shows that for scope 1, 17 wells was economically predicted at a recovery factor (RF) of 76.35% and net present value (NPV) of 118,468.4 M$ while the gas produced is 6,996.645 Mscf/d. Scope 2 predicted 6 wells with a recovery factor of 43.66%, net present value of 28,276.1M$ and cumulative gas production of 11,336.247Mcf/d. Scope 3 which had the lowest R.F of 25.36% with 3 wells economically predicted at NPV of 4,527.3M$ while the gas produced 13,171.194Mscf/d. Scope 2 was recommended due an appreciable RF of 43.66%, good NPV and cumulative production of gas irrespective of the recent economic downturn in the oil and gas industry. Effective automated gas management scheme can be initiated with strong economic implications geared towards improved productivity and socioeconomic diversification particularly in a growing monoeconomic country like Nigeria.