A specific study in Petroleum Production with a focus on prioritising production development and maintenance procedures based on their expected NPV / PI value.

In its simple form it can be thought as a spreadsheet with production development and maintenance procedures sorted out by a simple descending filter so that highest NPV / PI values are at the top of the list.

Sample Investment Plan Spreadsheet

Investment Period = 5 years

	Facility	Action	Budget, M$	NPV, M$	PI, %
1	Oil producer W-12	Drilling	1.0	0.8	80%
2	Water Injector W-04	WSO	0.3	0.2	60%
3	Booster Pump BP-12	Installation	0.2	0.2	100%
4	Oil producer W-12	Acidization	0.03	0.1	333 %
5	Oil producer W-09	Pressure Test	0.01	–	–
6	Water Injector W-04	Production Logging	0.05	–	–

Depending on application (long-term MDP, short-term FDP, routine WRM etc) the Investment Planning metrics and workflow may vary and selection of production development and maintenance procedures is based on either:

Fixed investment budget
NPV threshold
PI threshold

Page tree

See Also