Quarterly Publication

Document Type : Original Article

Authors

1 Department of Geography, Environment and Disaster Management, Faculty of Business, Environment and Society, Coventry University, United Kingdom

2 Department of Earth Sciences, Arthur Jarvis University, Akpabuyo, Cross River State, Nigeria

10.22050/pbr.2022.362571.1279

Abstract

The global economy is expanding at a drastic pace and energy is fundamental to nearly all economic activities and modern standards of living. Sustaining oil supply is a profound challenge in the oil and gas industry. One of the ways the industry is now looking to sustain supply is through the development of oil rim which was once seen in the past as un-commercial because of technology. Developing oil rim has its own opportunities and challenges which this study has focused on. The purpose of this study was to investigate the feasibility and viability of oil rim development, the opportunities and challenges associated with it, and the factors that could affect its economical viability. Troll Oilfield in Norwegian continental shelf was used as a case study because it is an oil rim field. The economic analysis that was carried out was based on historical production data of Troll oilfield. Deterministic approach was used which involved both cash flow and sensitivity analysis. Based on the results from the economical analysis that was carried out, oil rim development is marginally economical and viable but on certain conditions (low CAPEX and high oil price). The type of technology used in developing oil rim determines the efficiency and economical feasibility of the development. The outcome of this study shows that, technology has actually made oil rim development possible which was once seen as un-commercial in the past and also oil price is the main determinant of the viability of oil rim development.

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