Insight
Reviving mature reservoirs in deepwater GoM: are sidetracks worth it?
Report summary
Operators in GoM deepwater are adjusting to the lower oil price with more low-risk infrastructure-led projects, including sidetracks and recompletions. These operations accounted for half of development drilling activity in GoM deepwater in 2018. But are sidetracks and recompletions worth it? In this insight, we explore the commercial and operational benefits of sidetracks, including a cash flow analysis. We also discuss the main drivers of increased sidetrack and recompletion activities and, finally, factors that could lead to a slowdown in sidetrack activities.
Table of contents
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Executive summary
- All thanks to improved seismic and lower drilling cost
- How well do sidetracks perform in GoM deepwater?
- Vacuuming the pennies – sidetracks and recompletions unlock residual value
- Outlook on sidetrack and recompletion activity
Tables and charts
This report includes 6 images and tables including:
- Sidetrack and recompletion drilling activity in GoM deepwater
- Histogram of Sidetrack IP performance
- Sidetrack IP performance by play
- Single-well sidetrack undiscounted cash flow under different scenarios
- Improvements to value and development-cycle breakeven from single-well sidetrack
- Sidetrack incremental value (US$M, NPV 10) at various rig rate assumptions
What's included
This report contains:
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