Cooperation between supply chain partners in the oil industry is essential, especially when oil prices suffer from fluctuations that affect the profitability of each party. An essential task in oil field development projects is to create an optimum agreement between the national oil company and the international oil company to guarantee agreement optimization. In this paper, the national oil company is the first party (FP) and the international oil company is the second party (SP). The paper’s purpose is to investigate the use of game theory to obtain the best agreement between the FP and SP in order to enhance the cooperation and reduce conflict. In this paper, Nash and Maxi-min solutions have been applied for the first time in a special type of petroleum agreement, called exploration and production sharing agreements (EPSA). This is conducted for a case study in Libya. The study considers nine negotiation factors (issues) in the EPSA, which are the share percent, the four “A” factors, and the four “B” factors, which are usually affected by the fluctuations of oil prices; and the study investigates their effect on the total payoff function, the net present value (NPV), and internal rate of return (IRR) for both parties. The Maxi-min solution has shown an improvement in the NPV and IRR of the SP, where NPV increased from USD 148 million to USD 195 million, and IRR from 15.65% to 17.01%. The Nash solution has shown a little more improvement than the Maxi-min solution in the NPV and IRR for the SP, where the NPV and IRR have increased from USD 148 million to USD 222 million and from 15.65% to 17.94%, respectively.

There have been many improvements on the drilling fluids due to the increased amount of environmental and safety concerns. Decreasing the amount of toxic additives found in the drilling fluid can help to reduce the environmental impact. It is very important to have an in depth knowledge of all the properties of drilling fluids in order to design an effective mud. This is because drilling fluids can have great variations in different properties such as rheology, fluid loss, density, viscosity, pH etc. Various effective additives can be used to change the properties of the mud as required. In light of the above fact, new additives have been introduced and the purpose of this research is to test these new additives used in drilling fluids as well as to understand the effect of these additives on the properties of the drilling fluid such as filtration rate, filter cake thickness, pH, and viscosity in order to improve the drilling performance. The new additives used in this experiment are rice husk ash (RHA), hay barn (HB) and hay barn ash (HBA). Initially, an experiment is conducted to understand the rheological properties of these additives before adding them to the mud. Later, different percentage of these additives is added into the plain mud at different temperatures and pressures and various tests are performed based on API standards.

This paper extends the analysis of our proposed modification to the first model of Libyan Exploration and Production Sharing Agreement (LEPSA I) to field applications. Four decision‐making models are coded in a spreadsheet program to estimate profitability indicators for two development scenarios. These scenarios are primary and secondary recovery methods with water injection and enhanced oil recovery by injecting carbon dioxide. The paper concludes that the economic profit for the foreign investor (second party) under LEPSA I was improved compared with EPSA IV. Also, Libya increased its oil reserves with a reasonable decrease of its production share. Moreover, the results showed that the profit indicators under the current production shares (cost recovery) of the fourth model of Exploration and Production Sharing Agreement (EPSA IV) were not favourable to the second party. Because of that, the second party would not be motivated to make a decision to invest any money for an oil development projects in Libya. Finally, the paper investigates how EPSA IV should be redesigned to maximise the Libyan National Oil Corporation (first party) oil reserves and give more attention to the economic objectives of the second party.

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The Water Alternating Gas flooding method aims to improve sweep efficiency during CO2 flooding. This study has screened three waterflooded sandstone reservoirs for CO2 injection to apply the Stalkup Model. An empirical correlation is derived from the Stalkup Model parameters Sorw, Sob, Sorm, and HCPVI to ease estimation of the recovery factor calculation process. The empirical correlation is called the WAG correlation. The hydrocarbon recovery percent calculations of the reservoirs after 1.2 HCPVI were as following; for reservoir (A), the Stalkup Model provided a recovery percentage of 10.00% against the WAG correlation value of 9.30%. In reservoir (B), Stalkup Model calculations gave 6.00% compared to 6.40% from WAG correlation. Finally, in reservoir (C) the calculation showed a 7.00% form Stalkup Model and 6.40% from WAG correlation. The estimated average error for the three reservoirs was 7.4%.