Maximizing project value : Development of Iwafune-Oki field

Abstract

Iwafune-Oki oil & gas field is situated at 4km offshore from River Tainai in Niigata and is the only operational offshore field in Japan. This field has been operated since December 1990, but after five years of plateau period, it showed a rapid decline in the oil production rate. Therefore maintaining productivity by finding additional reserves became an urgent task. In response to this, G&G and Reservoir Evaluation Group assessed exploration potential and possibilities in field development optimization. As a result, it was possible to greatly increase proven reserves. It is also possible to interpret this as a process of field growth. In this paper, the efforts at value maximization of this field are introduced from the development history viewpoint.