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- W2616106578 abstract "Abstract A national oil company in Ecuador was focused on the exploration and production of hydrocarbon resources within the Ecuadorian territory. It became the main operator in Ecuador after a merger with another operator in 2012. This paper presents the master plan prepared by the operator to reorganize the entire portfolio, ranking assets in terms of value as a first approach to maximize return on investments (ROI). Following the merger, the new organization was attempting to reach equilibrium; however, issues regarding how best to allocate financial and human resources affected production delivery. At that time, risk and uncertainty management became crucial for reorganizing the entire portfolio. A pilot project to address similar issues had been initiated by the operator beginning with Blocks 7 and 21 in 2010, where the value of the different fields in the block had been ranked using the front-end loading (FEL) methodology. This exercise had also been successfully replicated in Blocks 12, 15, and 18. When the merger was finalized, this approach was applied immediately to integrate and rank all assets operated by the newly merged company, allowing upper management to assign resources accordingly. Once the assets were ranked and grouped to identify clearly those fields comprising 60, 30, and 10% value for the operator, the process of calculating the associated investment to capitalize production and additional reserves from those fields began. A matrix to measure ROI vs. risk was then built, and every project was assigned an estimated operational expenditure (OPEX) value associated with the new growth strategy. This tool allowed the operator to select those opportunities that required minimum investment coupled with low and stable operating costs. In several fields, foreign investments were made under a contractual model, allowing service companies to provide specific services to increase oil production and recoverable volume based on a risked investments model, while the operator maintained the decision-making power and operatorship of all assets. As a result of this strategy and in conjunction with a robust management and execution plan, production not only stopped declining but reached higher production levels than previously experienced." @default.
- W2616106578 created "2017-05-26" @default.
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- W2616106578 date "2017-05-17" @default.
- W2616106578 modified "2023-09-27" @default.
- W2616106578 title "Portfolio Management Strategies to Maximize Profitability from Mature Fields under Optimal Cash Exposure Mode in Ecuador" @default.
- W2616106578 cites W2012606834 @default.
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- W2616106578 doi "https://doi.org/10.2118/185587-ms" @default.
- W2616106578 hasPublicationYear "2017" @default.
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