Exploration Project Sourcing

Petroleum exploration project sourcing involves several steps to identify, evaluate, and acquire potential projects for exploration and development. Here are the typical steps involved in the process:

1. Initial Research and Identification:

  • Conduct initial research to identify potential exploration opportunities in regions with favorable geological conditions and known hydrocarbon potential.
  • Utilize geological data, satellite imagery, seismic surveys, and existing exploration reports to identify prospective areas.

2. Assessment of Regulatory and Legal Framework:

  • Evaluate the regulatory environment and legal framework in potential exploration areas, including licensing requirements, environmental regulations, taxation policies, and local community engagement protocols.
  • 3. Data Acquisition and Analysis:
    Acquire seismic data, well logs, geological maps, and other relevant geophysical and geological data for the identified areas.
  • Analyze the data to assess the geological structures, potential reservoirs, hydrocarbon prospects, and exploration risks.

4. Prospect Generation and Evaluation:

  • Generate exploration prospects based on the analysis of geological and geophysical data.
  • Conduct detailed prospect evaluations to assess the size, depth, quality, and economic viability of potential hydrocarbon reservoirs.

5. Risk Assessment and Mitigation:

  • Identify and assess exploration risks, including geological, technical, operational, environmental, and regulatory risks.
  • Develop strategies to mitigate and manage identified risks throughout the
    exploration project lifecycle.

6. Financial and Economic Analysis:

  • Conduct financial and economic analysis to evaluate the potential returns and profitability of exploration projects.
  • Assess capital investment requirements, operating costs, expected revenue streams, and project economics under various price scenarios.

7. Stakeholder Engagement and Negotiation:

  • Engage with relevant stakeholders, including government authorities, local communities, landowners, and potential joint venture partners.
  • Negotiate exploration agreements, production-sharing contracts, land access
    agreements, and other contractual arrangements.

8. Due Diligence:

  • Conduct comprehensive due diligence on potential exploration opportunities, including legal, technical, financial, and environmental aspects.
  • Verify the accuracy and reliability of geological data, regulatory compliance, and ownership rights.

9. Decision-Making and Project Selection:

  • Evaluate the findings of the prospect evaluation, risk assessment, financial analysis, and due diligence to make informed decisions on project selection.
  • Prioritize and select exploration projects with the highest potential for success and value creation.

10. Project Acquisition and Execution:

  • Acquire exploration rights or assets through licensing rounds, farm-in agreements, asset acquisitions, or joint venture partnerships.
  • Initiate exploration activities, including seismic surveys, drilling campaigns, and geological studies, to further assess and develop the identified prospects.

11. Monitoring and Review:

  • Continuously monitor and review the progress of exploration projects, including geological findings, operational performance, and regulatory compliance.
  • Adjust strategies and plans as necessary based on new information, changing market conditions, and project outcomes.

By following these steps, petroleum exploration companies can effectively source, evaluate, and pursue promising exploration projects to unlock new hydrocarbon reserves and create long-term value.