Stochastic Activity-Based Time and Cost (S-ATC) Model for Oil Wells: Case Study of Niger Delta Onshore, Nigeria

Stochastic Activity-Based Time and Cost (S-ATC) Model for Oil Wells: Case Study of Niger Delta Onshore, Nigeria
  IJETT-book-cover           
  
© 2023 by IJETT Journal
Volume-71 Issue-5
Year of Publication : 2023
Author : Djoï N. André, Nwosu I. Joseph, Ikiensikimama S. Sunday
DOI : 10.14445/22315381/IJETT-V71I5P206

How to Cite?

Djoï N. André, Nwosu I. Joseph, Ikiensikimama S. Sunday, "Stochastic Activity-Based Time and Cost (S-ATC) Model for Oil Wells: Case Study of Niger Delta Onshore, Nigeria," International Journal of Engineering Trends and Technology, vol. 71, no. 5, pp. 49-69, 2023. Crossref, https://doi.org/10.14445/22315381/IJETT-V71I5P206

Abstract
Oil and gas well drilling and completion times and costs estimate has a large impact on the capital investment decisions in exploration and production (E&P) projects. Their good estimate is one of the main purposes of engineers in the economic evaluation of oil field development projects. Several techniques (deterministic and probabilistic) that are mainly cost-per-footage-based are available for oil wells’ time and cost estimation. This study aims to propose a technique called the “Stochastic Activity-Based Time and Cost (S-ATC) Model” for oil and gas well investment. This model sets a probabilistic comprehensive activity-based technique that provides single values, P10, P50 and P90, for the oil well's time and cost estimate. A case study is performed for the onshore Niger Delta, Nigeria. The advantage of this model is its ability to furnish much more accurate outputs. The model has been tested with two wells within the Niger Delta region in Nigeria. The estimation errors range between 0.2 and 5.96 percent, which proves the efficiency of the S-ATC model.

Keywords
Oil well, S-ATC Model, Deterministic parametrization, Stochastic parametrization, Niger delta, Nigeria.

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