Abstract

With the current demand for hydrocarbons, the constraints on the development of offshore oil and gas fields is attracting more and more attention. In Indonesia some 70% of total oil fields could contain reserves of 25 million barrels or less. However, in the offshore environment, discoveries of up to 10 million barrels could be restrained from development by economic factors, dependent on prevailing circumstances. Therefore, it is likely that a significant percentage of the total basin reserves could be categorised as 'marginal'. In this paper the constraints are examined and their significance in economic terms is considered. It is concluded that in an environment such as that encountered offshore Indonesia, major problems can be expected with justification of the development of a field containing reserves of less than 6 million barrels. At this level of reserves, deliverability and cost estimates must be clearly understood. Where uncertainty prevents development decisions, government incentives must be considered.