Kanvinde, Sanjay Sharadkumar (Schlumberger) | Heidenreich, Katy M. (Schlumberger) | Parsons, Barry Gerard (Schlumberger) | Pearson, Greg (Schlumberger) | Kristiansen, Tore (Statoil ASA) | Andersen, Ketil (Statoil)
This paper presents a framework and a systematic top-down approach for implementing a company-wide operator-service company integration program for well construction services called integrated competence. The paper describes the key aspects of implementing the integrated competence program: goals, objectives, critical success factors, levels of integration, asset selection and targeting, value creation and key performance indicators (KPIs), multiskill roles, onshore and offshore team configurations, training, and change management.
The integrated competence program developed by StatoilHydro and Schlumberger is an initiative under StatoilHydro's Integrated Operations (IO) corporate initiative and was applied to StatoilHydro's standardized well construction process. The joint team configurations in StatoilHydro's Onshore Operations Centers (OOC) improved collaboration in all phases of the well construction process, and the Schlumberger Support Center provided remote support of drilling operations. In addition, the paper describes two case studies used in the development of the wider program.
The framework, program approach, challenges, and results presented in this paper provide the E&P industry with an example of operator-service company integration, with possible implications for their own current and future digital initiatives, particularly those focused on the well construction process.
Scheduling and rescheduling strategies are used at several levels on a daily basis in the oil industry to among others have control on safety regulations, improve resource utilization and optimize profit. With the emerging integrated operations and focus on collaboration new work methods also become possible within scheduling.
Access to easily shareable information from multiple locations reduces the response time, which in turn make high performance decision support tools for rescheduling attractive. A rescheduling tool produces globally consistent schedule proposals based on information from the different disciplines involved in the planning activities. These proposals can be edited by the participants in the collaborative environment, and new feasible schedules are generated.
In this paper, several simplified scenarios have been executed to simulate and exemplify situations where the original schedule is deteriorated so that rescheduling must be applied to try to keep the schedule objective. In all scenarios our rescheduling strategies maintains the objectives of the original schedules. These scenarios are used to illustrate the potential of using collaborative environments in rescheduling processes.
We live in a fast moving consumer world where pocket PCs are common place and auto-identification technology is everywhere - mainly barcoding but increasingly Radio Frequency Identification (RFID). So why isn't Upstream Oil and Gas adopting these technologies at a faster rate to improve business performance? "If Tesco can do it, why can't we???
This paper examines the major applications for the use of hand held devices (HHDs) and auto-identification within supply chain, maintenance and operations. It describes the benefits in terms of the ability to link offshore and onshore operations more effectively and accurately pass real-time or near real-time information between assets, support organisations and supply chain partners, to allow earlier and improved decision quality, as well as the traditional efficiency gains. Upon detailed analysis, moderate investment yields high potential returns.
One of the fundamental differences between the supermarket chains and the Oil and Gas industry in this area is the lack of agreed technical standards in terms of RFID hardware and data transfer standards, acting as a barrier for supply chain integration. This paper touches on the work that is underway to address this issue, but goes on to explain how an appropriate application of technologies and attention to process and change management considerations can deliver robust solutions for operations and maintenance today.
The Champion West field was discovered in 1975 offshore Brunei, but its oil reserves in a complex web of thin reservoirs were initially deemed too expensive to develop. Field development was slow due to reservoir complexity and technology limitations. The current phase of development of the Champion West reservoirs uses long horizontal snake wells, which create multiple drainage points in sands, effectively achieving a similar drainage pattern of several conventional wells. The snake wells intersect up to 4 kilometers of reservoir intervals with total depth of up to 8 kilometers, and are divided into several zones with external casing packers or swellable packers. Each zone is then equipped with an inflow control valve and pressure and temperature sensors to allow monitoring and optimization of the recovery process from that zone. Historically, for long horizontal wells, the effective control of production profile and effective tracking of production from individual zones have been problematic. Poor tracking of production will adversely impact overall management and ultimate recovery from a reservoir. One solution is to fully utilize surface and downhole pressure data and multirate well tests to generate data driven models to determine zonal inflow, zonal interactions, and flow across inflow control valves, and to compute ICV settings for optimum reservoir management.
FieldWare Production Universe (FW PU) is a software application developed by Shell International Exploration & Production and Shell Global Solutions International, with significant involvement and support from Brunei Shell Petroleum Company Sendirian Berhad(BSP) for robust data driven modelling in an production operations setting that provides continuous real time estimates of well-by-well production. Applied to the Champion West multizonal wells, the FieldWare PU models, built using surface and downhole test data and an understanding of well performance provides regularly validated estimates of zonal production rates using real time surface and downhole data. Using this tool, inflow control valve settings are suggested to the user in order to optimize production on a daily basis through the use of mathematical optimization routines taking into account all available data. The system also provides early warning to the field management team of any wells deviating from well reservoir management guidelines. The intent of this technology is to enable more transparent, sustainable and systematic management of smart well production systems through the use of real time data to improve the understanding of reservoir behaviour and to allow early intervention to optimize production and ultimate recovery.
Statoil has implemented a strategy for wide deployment of Integrated Operations (IO), which has evolved on the basis of the company's cultural and organisational characteristics, the experiences it has gained and the assets it operates.
A phase of experimentation, including R&D activities, pilots and wide deployment, was identified as necessary for the understanding of the challenges ahead to mature. Two examples are the development of work processes for production optimization and the design of new wells and drilling with net present value as the main quality criterion.
The second phase was to establish field-specific plans in order to ensure more rapid and broader progress. The third phase recognised that the ambition could be set higher if a concrete vision was established: "to strengthen decision-making onshore and strengthen execution offshore??. In addition, IO synergies were identified across assets.
One success factor has been the wholehearted support of senior management, the CEO and the E&P senior vice president and his team. Another factor has been the change management process, which was established through a core team consisting of both discipline and asset expertise, with the formal support of the technical and administrative organisations
The empowerment of the assets and their multidisciplinary groups to develop and implement a broad set of initiatives has been crucial. It provided the enthusiasm, experience and confidence required to make the transition to company-wide solutions.
The impact on the bottom line is already being felt: in 2006, the production increase as a resulted of IO generated USD1.5 billion.
Most of the existing drilling and completions engineering applications in use today were designed to compute snapshots at a single point in time for one user, rather than presenting the acceptable operating envelope and its associated constraints over time and supporting interaction of multi-disciplinary teams in collaborative environments.
The massive increase in data now available from real time sensors can make identification of critical factors more difficult and can hinder, rather than enhance the decision making capability and response to alarm conditions. Currently, interaction between individual team members is cumbersome and it takes place outside the applications. Teams are increasingly multi-cultural, which places additional demands on the human-computer interface and cultural and linguistic preferences need to be considered, particularly where collaboration centres span international boundaries. The applications are also part of a growing portfolio, including office and knowledge management tools. Their usefulness and efficiency depends on successful integration. In turn, this depends critically on standards. The working practices emerging from the use of these environments means the earlier applications are no longer optimised for the circumstances in which they are to be used.
The paper contains a discussion of these changes and the new functionality required of the applications using a popular model in industrial psychology. It draws on practices from other industries, observations in collaborative environments and other, earlier work within our own industry that appeared before their time. It is concluded that new applications are needed for this new era and that some may bear more resemblance to gaming software than raw calculating engines. It also concludes that a number of the constraints may be self-imposed, by our failure to keep pace with the rapid and continuing developments in information and communications technology and the business models developed for the virtual world.
In recent years, re-invention and development of electrical wireline mechanical applications, initially for high-angle well-access in conjunction with wireline tractors, has proven able to unlock value potentials by allowing interventions, previously thought impossible or cost prohibitive, even in low angle wells. Common denominators are remote-control, rig-less operations and documented large value-creations.
The most recent advancement in this service category includes milling and drilling on wireline; a breakthrough within intelligent production optimization. With the ability to engage a wide variety of challenges downhole, this technology provides hitherto unseen possibilities to increase production quickly, efficiently and safely. Also representing new capabilities is the technology of transforming constant mechanical force independently of the wireline and depth/deviation of the well. The advantage here is that operations can be performed from a crane or mast unit with electric line and apply a pulling/pushing force capable of manipulating down hole production control devices in a controlled and repeatable manner.
This paper will present innovative areas of recovering production through various case histories.
With today's high operating cost it is important to identify areas where new technology can be used to reduce rig time and improve production efficiency. Mechanical interventions such as manipulating valves and sliding side door devices, setting/retrieving mechanical plugs and gas lift valve retrieval/deployment, has historically been the domain of Slick Line techniques in vertical wells and Coiled Tubing in horizontal wells. These methods are difficult to execute in the intelligent completion environment because of the complexity in passing downhole jewelry without consequences such as damaging or shifing the sleeve devices unintentionally. With the introduction of the Well Stroker (Figure 1), in conjunction with the Well Tractor (Figure 2), to the Gulf of Mexico, North Sea and West Africa markets, there has been a marked reduction in time and costs for operators carrying out mechanical interventions with standard electric wireline in intelligent completions whether in high or low hole angle holes. As tractor technology evolved and confidence was gained during the past several years, another application of electric wireline methods was developed and field proven; this time for milling of specific downhole hardware (i.e. valves, plugs etc.) as an alternative to existing methods (rig/CT). This technology is specifically needed on offshore installations where the logistical limitations for this kind of operation are high.
This paper focuses on the collaborative working techniques in a ‘brownfield' business environment within the oil & gas production support industry, based on experience gained from the introduction of a formal knowledge management programme within Production Services Network.
It describes the behavioural changes in the organization and the way the people within it respond to evolving collaborative technologies. It addresses the question, "How do we enable people to work in new ways in our new business model???
The paper explores the internal and external factors affecting how knowledge is shared and techniques which foster collaboration on a global scale, where people collaborating may well be in different continents and time zones. Demographic issues and the related subject of transfer of experience and know-how are discussed, as are the techniques to develop collaboration on an asynchronous basis and amongst people who don't know each other.
Probably most accurately categorised as being a ‘People, Process and Organizational Change' topic, the paper offers some suggestions on how to apply knowledge sharing techniques in strategically important areas of activity, some of which are peculiar to the oil & gas production support industry, and application of tried techniques from un-related industries. The balance between networking, rather than outsourcing, is discussed and the introduction of new work methods explored.
Some of the results will include previously unpublished examples of collaborative dialogues together with analyses of what interaction is actually taking place. It is intended that these will inform those interested in directing changes in attitudes about sharing amongst people. There is little published in this topic related to the brownfield sector of this industry.
This pilot was executed in Statoil, before the merger with Hydro, involving a drilling operation at the Åsgard Asset on the Norwegian Continental Shelf. Onshore operational support for well construction is now a common procedure in StatoilHydro for each local operation. In the spring of 2007 StatoilHydro launched the Houston Integrated Operation (IO) pilot; its objective was to prove the possibility of a global networked operation, exemplified by a 24/7 drilling operations from three different geographical locations, exploiting the different time zones and thereby eliminating the need for employees working unfavourable nightshifts.
A global networked operation will induce a substantial transfer of knowledge and experience between the various international activities of the company. A set of daily tasks were selected from the common corporate work process of well construction for the purpose of proving the concept of global 24/7 operational support. The pilot scope was also to evaluate the possibility to expand the use of global networked operation to a wider range of processes.
The three time zones included in the pilot were Norway (GMT +1) the Stjørdal office and the Åsgard asset, USA (GMT-6) Houston, Texas office and China (GMT+8) "Lu Feng?? this last time zone was fictitious and actually based in the Houston office. The professional staff tested out and verified various functions. They executed real-time drilling data services with quality control in the transference of data to project databases and they carried out real-time quality control of directional survey data and drilling efficiency services. While carrying out these functions the technology performance was monitored at all times.
The main objective of the pilot was to test the capability Global networked operation. While fulfilling this objective, the pilot would establish the Man, Technology and Organisation (MTO) elements that are required to create this capability. It was hoped that the pilot would prove that it is possible to achieve a working method for 24/7 operations, removing the need for evening and night shifts in Norway and establish and verify a technological platform that is good, simple and robust. The pilot would be used to recommend the way forward for StatoilHydro related to Global Networked Operation and establish guidelines for what is required to achieve successful implementation of this approach and working method.
The Houston pilot has been deemed a success. The pilot activities were fulfilled and the team in Texas was able to perform their tasks in the operations as a fully integrated member of the Well Operation Team in the Åsgard Asset. While carrying out their tasks the Houston team had access to all data and subsurface applications that they required and the whole pilot was tested without any network downtime. The Houston team was able to effectively collaborate with their colleagues in Norway- both onshore and offshore.
Over the past few years there has been an unprecedented wave of capital spending in the exploration and production industry. Still, the expectations for improved capital efficiency from Integrated Operations and its promise of "faster and better decisions?? have not materialized. Industry headlines are filled with notable examples of multi-year, multi-billion-dollar overruns. Indications show that leaders of oil and gas companies may be less satisfied with their overall performance than at any time in the industry's history.
In this paper, the main focus is on inter-organizational relationships between operators and suppliers in the context of Integrated Operations. We have surveyed one large operator, three large suppliers, and some small suppliers operating on the Norwegian Continental Shelf (NCS). The survey included a broad range of technical professionals at different management and business levels and included questions related to the collaborative relationship between operators and suppliers.
The paper presents and discusses some of the results from the survey. We will discuss the disconnection between operators and suppliers related to contractual/ incentive based contracts. Further, end results with use of incentive based contracts will be illustrated and possible improvements will be discussed.
Improving collaboration between operators and suppliers offers perhaps the greatest challenge and, we believe, the greatest potential in achieving the much anticipated value creation from Integrated Operations. This paper contributes to this by identifying the key disconnects between operating companies and suppliers.