The Portfolio Management Approach - portfolio covering multiple plays (many underexplored with significant yet-to-be-found resources), a hundred undrilled prospects and a number of significant discoveries under delineation/appraisal. To make the right choices around its Exploration Portfolio, the Management Team needed to be able to analyse its portfolio across five key dimensions: alignment to the company's strategic direction, reserve addition potential, technical feasibility and production and economic potential (Figure 1). The Portfolio Management Approach enables the Exploration teams to answer key questions with a systematic way to assess and analyse a portfolio of prospects:
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Production Contribution: How can the portfolio align with the targets, & with which uncertainty?
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Reserves Addition: How to balance delivering production targets while maintaining a long-term quality pipeline of resources? & how to sustain Reserve Replacement Ratio?
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Economic Returns: What are the expected economic returns of the whole portfolio, and what cluster of prospects can become viable economically?
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National Commitments: How is the national gas demand-supply landscape considered, & how do geopolitical considerations (e.g. near border prospects) affect the portfolio?
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Feasibility: What technical challenges are associated with the portfolio (e.g. fracking for unconventional, HP/HT), and what are the resources constraints (e.g. rigs, budget, manpower)?
This Strategic Portfolio Management System has given the Exploration Management Team superior visibility of its overall portfolio and the right information to make informed decisions about the short- and long-term Exploration priorities and to respond swiftly to significant changes in strategy or external events.
