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Scuola Enrico Mattei Master Medea Academic Year 2003-2004

Scuola Enrico Mattei Master Medea Academic Year 2003-2004. MultiPhase Boosting Technolgy – Technology Economic Evaluation. Group members:. Silvia Fazi Mirco Gastaldello Dario Li Gioi Massimo Stolzuoli Simona Varrasso. Tutors:

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Scuola Enrico Mattei Master Medea Academic Year 2003-2004

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  1. Scuola Enrico Mattei Master Medea Academic Year 2003-2004 • MultiPhase Boosting Technolgy – • Technology Economic Evaluation Group members: Silvia Fazi Mirco Gastaldello Dario Li Gioi Massimo Stolzuoli Simona Varrasso Tutors: Maurizio Granato Nicola De Blasio Alberto Marsala Giorgio Vicini San Donato Milanese, 28th June 2004

  2. Double Screw Pump Technology • Produce at Lower Costs: • Reducing the Export Pipelines • Using the Existing Facilities • Increase Production: • Wellhead Back Pressure Reduction • Recovery Factor Increasing

  3. Basic assumptions ٧ R&D total expenditure: 33.5697 Mln € since 1985 - R&D Off-Shore share: 63.1% - R&D On-Shore share: 36.9% ٧ WACC: 8.10% ٧ Inflation rate: 2.50% ٧ Oil prices (@2003): 18 – 24 $/bbl ٧ Gas prices (@2003): On-Shore: 1.99 – 2.65 $/Mbtu Off-Shore: 2.13 – 2.84 $/Mbtu ٧ Electricity prices: correlated to gas prices ٧ Technology life: 15 years ٧ Linear / quadratic trend hypothesis for breakeven analysis

  4. On-Shore Field • Mature technology • ENI’s share: 50% • Application life: 4 years • Differential analysis between pump enhanced production and normal production • NPV (ENI’s share): - oil price@18$/bbl:1.65 Mln € - oil price@24$/bbl:2.25 Mln € On-Shore Field • Innovative application • ENI’s share: 70% • Application life: 9 years • Differential analysis between pump enhanced production & gas-lift production • NPV (ENI’s share): - oil price@18$/bbl:8.255 Mln € - oil price@24$/bbl:13.062 Mln €

  5. NPV@18$/bbl: 2.13 Mln €NPV@24$/bbl: 11.73 Mln € Mln € Year 15 year technology life Cash FlowOn-Shore Field (hp: linear trend)

  6. Oil price@18$/bbl:Oil price@24$/bbl:number of wells: 27 number of wells: 17year: 2017 year: 2012 Break Even On-Shore (hp: linear trend)

  7. NPV@18$/bbl: 91 Mln €NPV@24$/bbl: 168.35 Mln € Mln € Year 15 year technology life Cash FlowOff-Shore Field (hp: linear trend)

  8. Oil price@18$/bbl:Oil price@24$/bbl:number of wells: 7 number of wells: 5year: 2007 year: 2006 Break Even Off-Shore (hp: linear trend)

  9. Conclusion The technology has achieved: • Improvement of oil and gas recovery rate • Recovery of oil and gas from depleted fields • Less requirements in terms of facilities and pipelines • Quick recovery of the money invested Thank you • On the other hand: • Reduced competitive advantage on the market

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