reservoir development--

There are two type of reservoir.one where oil is held due to surface tension and
other where oil is moving freely in poros
space and this one is called tank reservoir.
To draw oil from well where water and gas is also present we have to be careful
as there are are 2 scenerios possible.
and gas is avobe oil and water is below it.
1 we take oil just below gas column. In this case as oil starts depleating, gas
starts expansion and occuping this oil
space and will for a cone shaped.
2 we take oil just above water column.In this case water starts pushing up and w
ill make a cone shape where oil is depleted.
If reservoir is tank type than slightly lowering in pressure could cause water m
ixing with whole oil column and that oil
will not be the type of oil we can extract.
All business decesions including oil and gas projects require assignment
of commerciality of the propoe project.
Basic principles of Techno- Economic analysis undertaken in oil and gas sector w
hich broadly
include:
- reserve estimation
- Preparation of production profile and revanue generation
- cost estiamation
- Calculation of economic indicators evaluations.
A gas and oil company may be involved in four different types of
functions or segments.
- Exploration
- Productions
- Refning and processing
- Marketing and distribution
0il and gas accounting relates to accounting for the four basic cost incurred by
companies with oil and gas exploration and production activities.
These four basic types of costs are as follows:
Type of cost---
? Exploration costs: Cost incurred in exploring properly. They are incurred main
ly before the discovery of a hydrocarbon deposit. Exploration involves
identifying areas that may warrant examination and examining specific areas, inc
luding seismic geophysics, the geological and geophysical (G&G) interpretation,
drilling exploratory wells along with test wells.
? The Investment costs: Incurred In the delineation and appraisal phase, necessa
ry to gain knowledge of the reservoir;
? Development costs: costs incurred in preparing proved reserves for production,
i.e. costs incurred to obtain access to proved reserves and to provide faciliti
es
for Drilling the production wells and, if appropriate, the injection wells, Cons
truction of the surface installations such as the collection network. Separation

and treatment plants, storage tanks, and pumping and; Construction of transport
facilities such as pipelines and loading terminals.
? Operating costs: including transportation costs,