Delivered an upstream CSG appraisal pilot project at a circa 2008 (pre-boom) cost benchmark

Siecap is a project management and advisory firm specialising in providing a full range of corporate and operational services across the asset and investment lifecycle which assist our to clients optimise cost, increase performance and manage risk.

Delivered an upstream CSG appraisal pilot project at a circa 2008 (pre-boom) cost benchmark.

The Background

While working for BHP in the height of the resources boom (2013) Siecap’s Executive Director – Energy delivered an upstream CSG appraisal pilot project at a circa 2008 (pre-boom) cost benchmark. This was achieved while maintaining petroleum industry standards compliance and an impeccable health, safety and environmental compliance record.

The appraisal pilot consisted of 4 vertical producing wells connected to 6 ~1800m lateral in-seam wells and associated SCADA-equipped wellhead and pipeline infrastructure.

How the Siecap team helped

Appoint accountability: Provided effective decision-making across the multi-disciplinary project aspects. Where this couldn’t be achieved within the operating corporation, it was embedded in the contracting strategy.

Drive HSE Discipline: Commitment to the principle that HSE discipline is a proxy for operational discipline. Productivity performance can only be achieved with HSE performance.

Adopt a Strategic Risk Management Approach: Recognising that the risk profile is different for each field and reserve base and cost benchmarks can be materially improved by adopting risk-weighted standards.

Source and Retain Talent: Selecting the right people, with multi-disciplinary skills and experience can fundamentally improve project HSE & cost performance.

Foster Innovation: Embracing innovation in plant & equipment selection.

Embed Contingency into Planning Processes: Recognising that in a CSG reservoir, geology and production modelling will be wrong. How you plan for variances is the key to optimised field performance.

Be Intimate with your Reservoir: Incorporate incremental ‘contingent’ reservoir learnings to the point of intimacy.

Structure Contracting Strategies: In a way that incentivises performance, reduces waste and controls commercial risk.

The Results

Even with (relatively) expensive lateral well designs, the project realised an effective unit operating rate of circa AUD$4.00/GJ; a feat made even more significant by the fact the project was targeted in an extremely low producing coal seam with sub 1 millidarcy permeability exploration results.

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.