Gazprom Neft has developed digital products for estimating capital and operational costs (CAPEX and OPEX) in conceptual engineering and field management. Thanks to unique digital programmes the exactitude of cost estimates has increased two-fold in comparison with industry standards, allowing more considered financial decisions to be taken on both current and future assets.
These CAPEX and OPEX digital calculation products are unique to Russia’s oil industry in terms of the detail into which costs are broken down, and the customisability of a large number of parameters impacting the ultimate cost of a facility. The CAPEX calculation tool allows a broad list of facilities to be estimated, from the cost of roadbuilding to the full infrastructure for a new field. The OPEX programme assesses costs across the full asset lifecycle, taking the costs of parts and equipment repairs into account.
These digital tools are already in place at the Novoportovskoye, Vostochno-Messoyakhskoye, Severo-Samburgskoye and Tazovskoye fields. The programme has been developed as one of the key areas of Gazprom Neft’s Technology Strategy — its Electronic Asset Development (the “ERA” initiative)* — and forms part of the company’s “ERA:ISKRA” integrated digital complex.**
These cost-management digital tools have been developed by specialists at the Gazprom Neft Science and Technology Centre, together with Gazprom Neft Razvitie and ITSC (a Gazprom Neft software development subsidiary). Unique algorithms and functions — hitherto unavailable on the commercial software market — have been utilised as part of the new platform, including, in particular, the opportunity of engaging with both internal and external IT systems, as well as algorithms allowing the calculation of freight flows in logistical engineering and in calculating the range of uncertainty in the light of various unknown parameters in price setting.
Mars Khasanov, Technology Director, Gazprom Neft, and Director of the Gazprom Neft Science and Technology Centre, commented: “Gazprom Neft is demonstrating good economic efficiency in field development and project design. Helped by modern digital tools we undertake a comprehensive assessment and select the optimum financial and production solutions for each asset.”
Denis Sugaipov, Head of the Major Projects Directorate, Gazprom Neft, and CEO, Gazprom Neft Razvitie stressed: “An exponential increase in the volume of projects means the company has a growing need to evaluate the costs of their implementation. Using digital solutions means we can work with uncertainties, process large volumes of information and increase lead-times in managerial decision making.”
* “Electronic Asset Development (ERA)” is Gazprom Neft’s strategy for developing digital initiatives in all areas of exploration and production, including geological prospecting, geology, drilling, development, production, and field construction. Under implementation since 2012, the EAD initiative became part of the company’s Technology Strategy in 2014, and is now a key area of focus. The company’s technology strategy was updated in 2018 in response to the new production and business objectives of various Gazprom Neft subsidiaries. More than 40 projects are currently in hand under the EAD (ERA) initiative.
** “ERA:ISKRA (ERA:ISKRA)” — is an integrated conceptual asset development system, forming part of the future “intelligent field” concept in terms of conceptual project design and engineering.