Field development and economics

Field development and economics

The objective of this research area is to improve and disrupt current field design workflows by developing, studying and implementing novel technical and economic valuation solutions that allow one to compute and flag optimum ways of exploiting hydrocarbons based on digital tools and methods. This is important to ensure the profitability of new fields under a low oil price environment, environmental constraints, smaller discovery sizes and challenging more

Program area team


Current projects

Decision-support tools for early-phase design of offshore hydrocarbon fields

Associate Professor Milan Stanko

This video is a short overview of some of the research performed by his group on decision support methods during early phase planning of offshore oil and gas fields. Some focus aspects are using accurate proxy modeling to determine probabilistic optimal drilling and production schedules to help deciding early on e.g. processing capacities and the project’s fate. Environmental parameters such as CO2 emissions and footprint are also considered.


Cost effective development of small discoveries on the Norwegian Continental Shelf 

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PhD Candidate Semyon Fedorov

Main Supervisor Verena Hagspiel

Sponsor: Okea

This project studies field development methods for reservoirs of modest to small size, with prominent downside risk. The project focuses on:
1) the value of flexibility for field development by combining the real options approach and decision analysis
2) comparing these advanced valuation methods against traditional methods
3) assessing the value of acquiring additional information on the reservoir to execute improved oil recovery projects during the production phase
4) study of a staged-development design philosophy.

print screen from video of phd candidate

Project result: Staged development allows to get more value out of small discovery 
A study case showing that allowing for flexibility and updating with new information mitigates potential losses 

Operator-contractor risk and benefit sharing in oil exploration and production

A study case shows that sharing agreements allow to decrease volatility and downside risks

BRU21 Conference 2022


Current projects:

Improved planning methods for more energy efficient and environmentally friendly fields in the Barents Sea 

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PhD Candidate Seok Ki Moon

Main Supervisor Milan Stanko

Sponsor: Aker BP

This project studies field planning methods to develop offshore fields with a small environmental footprint, increased energy efficiency and reduced emissions. The focus is on:
1) improving understanding of environmental KPIs and how are they influenced by field design features
2) development of a digital twin of the field study case to predict emissions, energy usage and efficiency of the field
3) development of computational routines for decision support
4) study of alternative economic valuation

Print screen from video of phd candidate

Improved planning method for more energy efficient and environmentally friendly field development

Results of a study case from Aker BP show it is possible to find alternatives that have both good environmental and economic performance.

BRU21 Conference 2022


Automated methodologies for decision support in field development


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PhD Candidate Guowen Lei

Main Supervisor Milan Stanko

Sponsor: Lundin Energy Norway AS

The aim of this project is to develop computer-based robust and reproducible methodologies that advise field planners in defining the main features of the field in phases DG0-DG2. This will be performed by:
1) developing a digital twin of the field’s value chain
2) developing machine-learning based models and integrating models of various nature and complexity
3) developing and testing methodologies (e.g. optimization, probabilistic simulations) to determine optimum design features
4) analyzing uncertainty and energy usage, CO2 emissions, ease of decommissioning.

Project result: Efficient formulation to find optimal production strategies matches reality
Two study cases showing that efficient optimization can provide valuable insights to field planning and matches reality


Optimal field planning considering uncertainties and environmental performance


PhD Candidate Olga Noshchenko

Main Supervisor Verena Hagspiel

Sponsor: Okea and Norwegian Petroleum Directorate

How to valuate oil and gas offshore projects considering economic and environmental performance?

BRU21 Conference 2022


Short-term optimization under uncertainty in the Norwegian natural gas system

PhD Candidate Siva Sankar Udaya Kumar

Sponsor: Gassco

How to smartly operate the network considering trade-offs between energy efficiency, CO2 emissions and economic value.

BRU21 Conference 2022