We are excited to introduce our new territory partner, Brend-Vik; Ukraine’s leading oil and gas consulting organization. For insight into this exclusive partnership and a personal introduction – please read our Q&A, below, with Dmytro Kostenko (CEO) who runs the company in Ukraine; with an impressive 24-years industry experience as well as a Ph.D in Geology.
What is your role within your organization?
My role is overall strategic management as well as development of geological and economic evaluations of Oil & Gas assets in Ukraine and abroad.
What industry experience can you bring to customers in your territory to enable them to achieve the best results, with their oil and gas reserves’ requirement?
Our company provides a wide range of services in the oil and gas market: starting with design and supervision of seismic surveys, processing and complex interpretation of their results and to the modelling of reservoirs and fluid systems and geological and economic evaluation of oil and gas assets. We were one of the initiators of the introduction of the widely recognized in the world petroleum resource management system (SPE PRMS) in Ukraine, while officially adopted in Ukraine is United Nations Framework Classification for Resources (UNFC). So, we perform evaluations in both systems as required.
Brend-Vik has a wide portfolio of performed valuations of oil and gas assets for major Ukrainian and international petroleum companies and holdings. Our valuations were verified by leading international companies specializing in this area and certified for valuations of assets on the international exchanges.
In addition, we develop and implement advanced methods for assessing geological reservoirs. This allows to get the most accurate estimates of the production potential and market value of the asset. OGRE Systems’ R3 Visual Analytics software module is also very useful for companies that hold a large portfolio of assets and perform operational management.
What are the biggest challenges that your customers face that will be overcome by the use of new technology, provided by OGRE Systems?
In our industry, and this is not a problem of the Ukrainian market alone, there is one fundamental problem with the lack of software, which could provide a full evaluation workflow cycle and establish common environment for all team members involved in projects. Software that could provide integration for Geology, Production and Economics components in order to perform geological and economic evaluations.
Unlike other software products on the market, OGRE Systems’ R3 R2R provides an integrated solution. For instance, the geological module provides reliable geometrization of deposits and calculations of core parameters (deposit area, net pay, porosity and oil and gas saturation, formation pressures, temperatures, and thermobaric coefficients). Estimation of the initial volumes of petroleum is realized in R3 with Volumetrics method, both deterministic and stochastic approaches available. At the second stage of assessment (Production module), the analysis of parameters of historical development data, estimation of volumes of HC (using material balance method) and forecasting of indicators of development (using various statistical methods) is carried out.
The results of production forecasting form the basis for economic calculations, according to the chosen fiscal model.
It is very important for our customers in Ukraine to obtain results of evaluations in proper forms – whether it is intended to fulfil local legal procedures and involve UNFC resource classification (as required by State Commission of Ukraine for Mineral Resources dkz.gov.ua, which is roughly analogue to the SEC in the United States) or to perform periodical asset re-evaluation as required for international stock exchanges according to PRMS.
So, at the end of the day, we have a full cycle of calculations and we can easily update the estimation model ones new geological, production or economic data is available at any stage.
Why is OGRE Systems the right fit as a partner for Brend-Vik?
Since the geological and economic evaluation of petroleum assets is one of the core business areas of our company, we have long been looking for a suitable tool (software product) that will meet our needs on the software market. Software by OGRE Systems is as close to our requirements as possible. And most importantly, we were impressed with the willingness of their team to cooperate, the company’s flexibility and openness to improve the software, make adaptation to the requirements of specific markets and various petroleum management systems.
At Brend-Vik we, like OGRE Systems, are result-oriented and strive for product excellence. We already have an R3 localization for Ukraine and in the near future, in cooperation with OGRE Systems, plan to complete the software adaptation and improvement to the requirements of the international oil and gas asset valuation systems UNFC-2009 (which is the officially accepted hydrocarbon resource accounting system for in Ukraine) and PRMS-2018.