Baker Hughes: Developing existing oil fields 15% cheaper than new ones

Developing existing oil fields is, on average, 15% less expensive than developing new areas, Owen O'Donnell, Integration Leader at Baker Hughes, said at the SPE Caspian Technical Conference in Baku, Report informs.

He noted that this cost advantage reduces project capital burden while maintaining efficient production. "In the global energy sector, development costs for traditional oil projects are higher in newly discovered fields, whereas operations on existing reservoirs are economically more efficient," he explained.

A major benefit of mature fields is the short time required to start production. "While full development of new fields can take years, intervention campaigns on existing wells yield results within a few months, allowing companies to achieve quicker returns on investment," O'Donnell said.

He also highlighted the progress in intervention duration: "In 2007, the average intervention lasted 15 days, whereas in 2021 it decreased to about eight days. Efficient management of mature fields not only boosts production but also plays a critical role in energy security. Faster production cycles and lower costs make these fields strategically important for oil companies."