Project Overview

A petroleum company considering a farm-in to a significant offshore gas discovery commissioned SPD to carry out an independent, high-level due diligence review of the planned exploration well. The target well was a complex, high-risk directional well planned to evaluate known liquids-rich gas in a Miocene carbonate reef reservoir. One previous well had suffered a serious well control incident in 1983, resulting in an uncontrolled flow lasting six months. SPD’s mandate was to assess the operator’s well design, cost estimate and operational planning.

SPD’s Approach

SPD reviewed all available operator documentation including the well design, drilling programme, cost and time estimates, offset well data and blowout investigation reports. The review covered offset well analysis, drilling methodology assessment (PMCD), independent cost and time estimation, rig selection assessment and operational readiness review. SPD’s base-case time estimate was approximately 20% longer than the operator’s, and cost estimate approximately 25% higher.

Results & Value Delivered

✔ 25% Cost Underestimate Identified — Independent estimate revealed significant discrepancies in cementing costs and contingency assumptions.

✔ Pressure Optimism Flagged — Review of raw kick data indicated formation pressures potentially higher than operator prognosis in key sections.

✔ PMCD Capability Gaps Identified — Crew experience, critical spares and rig suitability for managed pressure operations highlighted.

✔ Rig Selection Concern Raised — Jack-up unit questioned for a field with blowout history.