A Framework for Value-Driven Exploration Strategies

Abstract

Hydrocarbon Exploration is, and will remain, a value driver for shareholders that will continue to create new economic opportunities for governments and businesses to thrive. Although its value creation is undermined by its long lead-time especially during oil market turbulence, explorers have unique ability and creativity to reinvent the business value and maximize the return on investment. This value-driven framework is built based on the well-known Boston Consulting Group (BCG) Matrix that allow fund managers in investment firms to classify and rank their investment portfolio into four quadrants according to their market share and growth. In this approach, exploration opportunities are ranked based on short-term returns and long-term value. The framework is an effective tool to rank the exploration portfolio and to communicate strategies to decision-makers. It can also be tailored to streamline the decision making process in the operations like designing well requirements, logistics and the planned life expectancy of each well.

AAPG Datapages/Search and Discovery Article #90364 © 2019 AAPG Middle East Geoscience Technology Workshop, Integrated Emerging Exploration Concepts: Challenges, Future Trends and Opportunities, Dhahran, Saudi Arabia, December 2-4, 2019