Marginal offshore oil and gas fields can be valuable assets
At the Marginal Field Development Company (MFDevCo) we believe that so-called marginal or stranded fields represent a huge opportunity and are a resource that should not be ignored.
The oil and gas industry worldwide is currently dealing with the long term impacts of the oil price crash in 2014 and the recognition that oil prices are very likely now to remain ‘lower’ for an extended period; marginal fields, by their very nature, also require a very specific approach and mindset and therefore to identify and exploit opportunities a slightly different organisation and focus is needed. The knowledge and understanding of this has informed and driven MFDevCo’s development to date, but at the same time we recognise the need for, and have assembled, strong engineering partners and delivery capability to ensure that we are able to effectively unlock the potential value in marginal and stranded fields.
Our focus is on fields where many of the major uncertainties associated with exploration and appraisal have been removed but where, under current or foreseeable conditions, the development solution in place or under consideration is not commercially viable. It is clear that finding a way to exploit these discovered resources represents a far more cost-effective and less risky means to create value, maximise recovery and secure energy supplies than does exploration for as yet undiscovered fields, but still it seems that many operators tend instead towards that. However, the economics of some of these fields can be transformed by adopting a slightly different approach to the development and/or a more appropriate development solution, creating a very valuable and attractive project – we can identify and evaluate the options available either for or with you and provide, if required, turnkey development, delivery and operations services to maximise value from assets containing known resources that would otherwise be decommissioned early or remain undeveloped.