The geological and economic assessment of subsurface targets performed by the "GeoGrid Center includes a complex of geological, technical and technological, marketing, organizational, financial, managerial and other decisions aimed to perform goals and tasks set by project participants and to substantiate managerial decisions.
The geological and economic assessments is based on the following principles:
- A subsurface use object is any oil and gas project that includes geological exploration activities at any phase, oilfield facility construction, development and decommissioning, construction of wells, geological and geophysical research, construction of field processing and transportation infrastructure, etc.
- The whole lifecycle of the project is covered: from pre-investment research and evaluation to the decommissioning phase, or any other period defined by the customer.
- Key performance indicators are evaluated on the basis of simulated cash flows with regard to the time factor, expected inflation, the maximum effect, the macroeconomic environment, and the comparability of conditions for different projects.
- Key risks which affect the project efficiency are assessed and taken into account, and proposals as to risk minimization are developed.
- The project is evaluated both as a whole and for each participant.
This scope of services of the GeoGrid Center includes the following:
- Develop technical and economical proposals, provide considerations and substantiations (feasibility proposal, considerations and study), including the feasibility study of the extraction ratio, financial and economical studies
- Develop proposals as to the conditions of participation in oil and gas projects, and perform cost assessment based on fair market prices
- Perform portfolio analysis and ranking of projects
- Perform the independent examination of feasibility proposals and studies, financial and economical studies and models, and develop optimization proposals