Journal Information
Research Areas
Publication Ethics and Malpractice Statement
To Scholarlink Resource Center
Guidelines for Authors
For Authors
Instructions to Authors
Copyright forms
Submit Manuscript
Call for papers
Guidelines for Reviewers
For Reviewers
Review Forms
Contacts and Support
Support and Contact
List of Issues


Journal of Emerging Trends in Engineering and Applied Sciences (JETEAS)


Article Title: Application of Decision Theory in Assessing Marginal Oilfield Risks: Niger Delta Hub Example
by Alaneme, Charles Ezemonye and Igboanugo, Anthony Clement

Decision theory valuation methodology has been identified as an effective tool in the analysis and management of risks for decision making in marginal oilfield exploitation. Numerous conventional methods in the employ of most international oil companies seem an aberration in marginal oilfield operation due to the uniqueness of the risks and the high cost of implementation. This short coming has resulted in the inability to optimally unlock the economic potentials of marginal oilfields that has remained untapped to replenish fast declining oilfields on account of their low economies of scale. A decision theory approach was successfully deployed in theoretically analyzing decision alternatives with Isiekenesi Oilfield, one of 251 remotely located marginal oilfields in the Nigeria Niger Delta. The study yielded corresponding payoff values for different reserve expectations of low, medium, and high cases in barrels of crude oil. Despite its limitations in not aptly defining the risks in crisp numbers, it successfully predicted the risk ratios of fundamental decision alternatives guided by basic assumptions on state of nature. This approach provides a cost effective first-pass appraisal mechanism needful for decision making process open to investment capitalists engaged in marginal oilfield exploitation.
Keywords: marginal oilfield, reserves, risks, decision theory, Isiekenesi, Niger Delta.
Download full paper

ISSN: 2141-7016

Editor in Chief.

Prof. Gui Yun Tian
Professor of Sensor Technologies
School of Electrical, Electronic and Computer Engineering
University of Newcastle
United Kingdom



Copyright © Journal of Emerging Trends in Engineering and Applied Sciences 2010