Efficiency and productivity analysis of the wells opened between 2008-2010 by Turkish Petroleum Corporation (TPAO)

In this thesis, efficiency and productivity of totally 94 production wells drilled onshore Turkey by the Turkish Petroleum Corporation during the period 2008-2010 have been tested employing DEA. Outputs of the study includes the amount of production obtained from the well and the total number of production days. Duration of the drilling, the depth of the well and the cost of drilling are used as inputs. The main objectives of the study are to identify the wells which have the relative effectiveness with minimum cost and inputs levels. These wells can be considered as a threshold for the future projections.The constribution of this thesis to the literature is that in this study for the first time oil and gas wells efficiency and productivity are examined for Turkey. In this study, input-oriented DEA method is applied using both the CCR and the BCC analysis. Also EMS software was used to apply the analysis.As a result, according to CCR and BCC models respectively 17% and 37% of production wells opened during the year were efficient. Indeed, results of the three-year cumulative analysis show that, with respect to CCR and BCC models respectively 9% and 18% of production wells were efficient. Mostly the production wells drilled in high-reserved areas and rarely the ones with the decision to leave early because of the non-production were efficient. General properties of the efficient wells shows that, average drilling depth is between 1300-1500 meters, average drilling duration is between 15-25 days, average drilling cost is between 300.000-800.000 USD and generally oil production quantity is under 50 000 barrels.