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www.oilsim.com
Learning Cycle
Additional knowledge/skills
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Environmental issues
Team work and negotiation
Critical decision making, analytical skills,
multi-tasking
Learn through experience
Economically viable volumes- reducing
uncertainty
Return on Investment
Function appreciation
Money and Credibility
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You start with $250 million
You can apply for more money later.
Create value
Measured by the net value of the oil and gas
fields discovered MINUS all costs involved.
Correct answers and sensible decisions are
awarded with CPs
Oil and Gas Value Chain
Complete Value
Chain
Upstream
OilSim day 1
Task 1
Pre-concession work
Gravimetric
data,
Magnetic data
Task 2
1 st concession round
Task 3
Licence award,
spread risk-negotiations
Enviromental
data,
Geological
maps
2D seismic
surveys
Today’s Challenges
3D seismic
maps
Gravimetric surveys
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Gravimetric surveys show the gravity in the
sub-surface. Measured by airborne sensors.
Sedimentary rocks have lower densities than
the surrounding crystalline rocks. Low gravity
means high probability of a basin below.
Low gravity are basins.
High gravity are crystalline rocks
First task
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Challenge: Find three sedimentary basins in
the area. Basins are sedimentary rocks in the
deep subsurface where oil and gas has been
generated.
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Procedure: Buy and study magnetic and
gravimetric surveys; and to submit the
coordinates, column and row number for
each basin centre.
Gravimetric surveys
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Gravimetric survey:
South-east
quadrant
Magnetic surveys
Magnetic surveys show similar information as
gravimetric surveys. The sedimentary rocks in the
basins have a lower concentration of magnetic
materials than the surrounding crystalline rocks.
 Sedimentary basins are the areas with the lowest
magnetic field.
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Basins have low magnetic field
Non-basins have high magnetic fields.
Magnetic Surveys
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Magnetic survey:
North-west
quadrant
Centre may not be the same
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C50
R100
C60
R110
Example:
Top basin on both
maps
 Calculate the
midpoint
between the
gravimetric and
magnetic centres
found
 = C55 and R105
Finding the Midpoint
Centre Midpoint calculation
3 centres – one Centre midpoint for
each basin
 Example: C55, R105
 Solve before deadline. All submissions
are evaluated after the deadline (and
not before).
 You may get 0-100 CPs. All three
centres must be located to get full
CPs.
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Task 1 solved
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All teams have submitted their answers.
Basin centres are located.
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Message in Inbox. All teams have
answers and CPs awarded.
OilSim day 1
Task 1
Pre-concession work
Gravimetric
data,
Magnetic data
Task 2
1 st concession round
Task 3
Licence award,
spread risk-negotiations
Enviromental
data,
Geological
maps
2D seismic
surveys
Today’s Challenges
3D seismic
maps
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Sedimentary basins may
contain oil and gas.
The government has
decided to put the blocks
around one of the basins
on offer.
Challenge: Identify the 3
most promising blocks
and offer an amount for
each of them.
Source and migration
2. MIGRATION ROCK
where hydrocarbons
are driven through
1. SOURCE ROCK
where organic material
is put under sufficient
pressure
3. CAP ROCK
Impermeable rock
that stops
migration of
hydrocarbons
4. PROSPECT
Traps
 Geological “pockets”, that might contain hydrocarbons.
Anticline trap
Fault trap
Stratigraphic
trap
(c) OLF
Salt dome
trap
Red areas
You will not be allowed
to bid, drill or operate in
any of the red areas
(environmentally
sensitive areas)
Green areas
Blocks in area may be
awarded.
 Is there a sedimentary basin and a
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migration route into the prospects
in the area?
Is there porous reservoir rock in the
area, so that the oil or gas can be
stored?
Is there a sealing rock in the area, so
that the oil and gas can be trapped?
If all are positive, then green
If some negative, then orange
If mostly negative, then red
CRS. Common Risk Segment
surveys tell you about the
probability of a structure in
the block/cell containing
oil or gas
Layer 3 Eocene
1500m below the surface
Layer 2 Paleocene
2500m below the surface
Layer 1 Cretaceous
3500m below the surface
Surface
2D Seismic surveys
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Traps can be found with seismic surveys
2D seismic survey is a cross section of the
geological layers along either a column or a row.
2D seismic surveys are used for locating
prospects.
2D Seismic in OilSim
Unprocessed
Interpreted
Processed
Red is top of the
sealing rock
Green is top of
the reservoir rock
Anticlinal traps
Leakage?
Leakage
Sealant rock
 Buy 2D seismic from the survey shop
What type of data do you want?
 Columns or Rows
 Unprocessed or processed data
 Interpreted or not
Only buy maximum of 2
block of data at a time
to speed up
processing
View the Seismic
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Red circles – navigate
through the 2D
seismic
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Yellow square – Row 1
from Column 1-56
Column
Row
Basin,Source
Prospect, Reservoir
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Minimum bid is $250K
Maximum bid is $7.5M
Enter numbers without commas (ex:
250000)
You will bid for 3 licenses but each team
will only be awarded one license
Highest bid wins the license
If two teams bid the same, the team
with the most CP’s gets it
Random license awarded if none of your
bids are high enough
Submit your bid before the deadline!
Recap on Task 2
Environmental Sensitive Areas map to
see which blocks to avoid
 Common Risk Segment surveys to see
which blocks to examine closer
 2D surveys seismic to identify which
ones have the most (big) structures
 Remember to submit 3 bids
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Message sent to
all teams with
the results
Credibility Points
are given for
prosperity of the
blocks you bid for
Every team has
got one
exploration
license
Task 1
Pre-concession work
Gravimetric
data, Magnetic
data
Task 2
1 st concession round
Task 3
Licence award,
spread risk-negotiations
Enviromental
data,
Geological maps
2D seismic
surveys
Today’s Challenges
3D seismic
maps
HQ is happy with the license awarded.
Challenge: Farm-out minimum 20% from your
license – and farm-in as much as you can in other
good licenses.
 Acquire 3D Seismic interpretations for the block you
operate, and study the results from the licensing
round
 Get others to invest 20% or more in your license –
you can show/send 3D seismic
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Real 3D Seismic
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Shows the subsurface structure in a cube.
Layer 3 Eocene
Layer 2 Paleocene
Layer 1 Cretaceous
Partnerships
Spread the risk: e.g Investing in other blocks divides
the risks amongst all partners, much more
preferable than keeping 100% of one field and all
the risk.
 Increase probability of profit: investment in only 1
field which could be a dry prospect is possible,
whereas the likelihood of investing in 5 fields which
are all dry is unlikely.
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Licences
Farm-in
Enter the
percentage and
total amount for
have agreed to
offer
Minimum
$100,000 per %
Add a message to
the seller
Press “Send
offer”
Farm-in
When a team receives a Farm-In offer to appears under
Financing. This is where a team can receive finance or
money for a % of their own blocks
Farm-in
License OWNER
decides whether to
ACCEPT or REJECT
the offer
 Partnerships
established every
time a license owner
accepts an offer.
 Overview: On the
main page, you can
see all licenses. 1)
licenses you operate,
2) licenses you have
invested in, and
other licenses.
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Farm-in
All your farm-in offers to other teams are shown under
“Investing” on the right-hand side of the homepage .
This is where a team offers investments to other teams for a
% of their blocks
Partnerships
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Partners pay a proportional share of all
future costs
Partners receive a proportional share of
the net proceeds from oil and gas
The operator team makes all decisions
regarding drilling
Teams can farm-out up to 70% of licence
Operators must keep 30% of licence