Hydrocarbon Resource Evaluation: Risk, Volumetric and Economic Assessment Methodology: A Case Study in the Norwegian Barents Sea

The petroleum exploration industry is cost intensive and requires detailed risk and economic evaluation of prospective areas to promote adequate investment. The objective of this study is to demonstrate the methodology (workflow) involved in assessing the potential profitability of a prospect using the GeoX software. The Nordkapp Basin of Norwegian section of the Barents Sea was used as a case study. The three stage evaluation approach applied in this study comprises risk evaluation of petroleum system elements, estimation of hydrocarbon volume and economic assessment of forecasted revenues from the sale of oil and gas. The results showed that geologic risk evaluation is an important input for volumetric estimates, which in turn is one of the main input parameters of the economic assessment. In addition, all three stages of the evaluation need to be carried out for an effective decision to be made on whether to drill a prospect.