This paper explores the application of LCC (Life Cycle Costing) concepts in the oil and gas industry. The paper details research into the development of a LCC model for using in SAP (System, Application and Products in Data Processing). Information held in the existing system in the oil and gas industry has been investigated in order to determine whether or not it is adequate to support LCC application for assets. The conceptual framework will develop the LCC technique as a tool to carry out costing analysis for new and existing systems. It will ensure that existing systems data are optimized for use in LCC applications and will investigate the feasibility of integrating the LCC model with existing systems. Based on this conceptual framework a LCC model will be developed.
The proposed system model provides a structural breakdown of cost (SBC) that can be applied to any asset at any level, such as super system, system, sub-system and equipment level in its lifecycle. The purpose of this SBC is to act as an aide memoir, as the starting point for developing a project/asset specific SBC that is tailored to the needs of a particular LCC requirement. The overview of SBC is provided to identify the data requirement for estimated cost element and provides a definition for cost element.
Consequently, if SAP-LCC is used for analysis at every, it is possible to identify the level that is the most significant in order to develop or reduce the cost in LCC at that level.
Effective management of oil and gas fields over field life with the objective of maximising asset value can be a complex affair. Application and integration of various skills from subsurface (geology, geophysics, petrophysics, reservoir engineering, production technology and drilling) to surface engineering, production operations / surveillance and economics disciplines are required to manage technical, commercial and political challenges and uncertainties. In large organizations, there are the additional challenges of ensuring consistent work quality and process with multiple projects and technical personnel with different levels of skills and experience.
Subsurface and economic disciplines workflow over a field life from acquisition of exploration or development areas, exploration, development, production and abandonment work activities were mapped, improved and integrated to ensure work are executed more efficiently and correctly.
This paper describes the techniques and activities involved in developing this workflow which incorporates data and information management, technology mastery and promoting a collaborative and integrated multidiscipline approach. It was developed and deployed in two phases over 3 years and became the first web enabled workflow in the organisation. Pilot implementation was carried out on a number of domestic, international and outsource Field Development and Field Review projects.
Case histories of the application, benefits gained and lessons learnt are discussed this paper.
The paper introduces some problems that subdivision injection and production technology is facing in the stage of extra-high water cut production in Daqing Oilfield, the problems have become main factors affecting sustained development of Daqing Oilfield, like subdivision water injection, separate layer fracturing in thin restraining barrier and injecting surfactant to reduce pressure problem, each of them is close to challenge technical limit.
This paper presents a successful integration of pressure transient tests, production, and seismic data to detect inter-reservoir communication between Hanifa and Arab-D reservoirs in the southern dome of Abqaiq field in Saudi Arabia.
Even though Hanifa and Arab-D reservoirs are separated by about 300 feet of impermeable Carbonates, the two reservoirs are in pressure-fluid communication through conductive faults/fractures in the heavily faulted/fractured area of Abqaiq field.
Late time pressure anomalies on the log-log plots were observed on several field examples of transient tests in Hanifa reservoir and some were interpreted as external effects of pressure support from the communicating Arab-D reservoir. Simulation modeling was used to further analyze such pressure responses.
Better reservoir management decisions and more focused development strategies can be achieved through the utilization of the quantitative pressure transient analysis of those tests.
Fuzzy model is applied for permeability estimation in heterogeneous oil reservoirs using core porosity and gamma ray logs. Also, the basic concepts of fuzzy model is described, and how to use the constructed model to analyze and interpret the results. Fuzzy logic approach is used to represent a nonlinear relationship as a smooth concatenation of local linear submodels. The partitioning of the input space into fuzzy regions, represented by the individual rules, is obtained through fuzzy clustering. The results from the fuzzy model shows that it is not only accurate but also provides some insight into the nonlinear relationship represented by the model. Whereas, the results of the blind test developed a good agreement between the measured core permeability and the output of the fuzzy model.
An integrated reservoir study represents the one reservoir modeling technique available to a reservoir management team that incorporates ALL of the information available regarding a petroleum reservoir. As such, the integrated study has the potential to provide the team with the highest resolution most accurate description of their field that is currently available. However, that high resolution comes at the expense of a highly complex, data intensive process. This paper was an attempt to simplify and codify the complex process of performing an integrated reservoir study.
The paper presents an overview of the integrated reservoir modeling process including how that process has changed from the early days of reservoir simulation to the present day. Two models are presented that illustrate the study process for a 1980 time frame multi reservoir study and a 2002 time frame geostatistically based compositional reservoir model.
Emphasis is placed on the changes in workflows from the early models -- simple mapping of properties and manual digitization of maps to simulation model grids -- to the more complex models of today -- with property distributions based on object modeling and geostatistical analysis to distribute reservoir properties.
Through the examples, the paper illustrates the point that reservoir studies have evolved from a time when the geologists and engineers often knew more about their reservoirs than the available modeling tools would allow them to implement in their models - dual porosity and flow across faults, for example - to the point where today we often have the modeling capability to model more complex phenomena than our knowledge of the reservoir may warrant - for example, object modeling with no data on the characteristics of lithofacies in our reservoir, or dual porosity flow models with no data on fracture spacing and distribution.
The Integrated Study Conceptually
Although the term "Integrated Study" only gained widespread use in the 1990's 2,3,4, the conceptual tasks needed to build a model of a reservoir have been identified and performed since the advent of multi-well full field simulation studies. Those tasks -- structural interpretation, petrophysical analysis, stratigraphic analysis, fluid PVT analysis, and reservoir simulation - have formed the basis for building models since the 1970's and continue today to be the backbone of the "Integrated Study" concept.
What has changed in the Integrated Study concept is:
The switch from the analog to digital form for the data input and analysis results of the "geo-science" tasks of the studies
The development of ever more mechanistically sophisticated analysis tools, for example
Object modeling in facies identification work
Geostatistical methods in distributing petrophysical properties inter-well,
Arbitrary connections in simulators to allow modeling of faults and fractures
Many orders of magnitude faster computers and greater data storage capacity
As a result of the sophisticated tools and greater computing capacity, the focal point of all of the model building process has moved from the reservoir simulation "dynamic" model in the integrated study concept of the 1980's, Figure 1, to the geologic "static" model today. This movement of the focal point is, we believe, a major reason for the greater interaction between the disciplines and tasks that is the emphasis of the 2003 integrated study concept, Figure 2.
Knackstedt, M.A. (Australian National U., U. of New South Wales) | Arns, C.H. (Australian National U.) | Limaye, A. (Australian National U.) | Sakellariou, A. (Australian National U.) | Senden, T.J. (Australian National U.) | Sheppard, A.P. (Australian National U.) | Sok, R.M. (Australian National U., U. of New South Wales) | Pinczewski, W.V. (U. of New South Wales) | Bunn, G.F. (BHP Billiton Petroleum)
A facility for digital imaging, visualizing and calculation of reservoir rock properties in three dimensions (3D) is described. The facility includes a high resolution X-ray micro-computed tomography system capable of acquiring 3D images made up of 20003 voxels on core plugs up to 5 cm diameter with resolutions down to 2 µm. Subsets of four sandstone reservoir core plugs (5 mm in diameter) from a single well of a producing gas field are imaged in this study. The four cores exhibit a broad range of pore and grain sizes, porosity, permeability and mineralogy. Computational results made directly on the digitized tomographic images are presented for the pore size distribution, permeability, formation factor, NMR response and drainage capillary pressure. We show that data across a range of porosity can be computed from the suite of 5 mm plugs. Computations of permeability, formation factor and drainage capillary pressure are compared to data from a comprehensive SCAL laboratory study on 70 cores from the same well. The results are in good agreement. Empirical correlations between permeability and other petrophysical parameters are made and compared to common correlations. The results demonstrate the potential to predict petrophysical properties from core material not suited for laboratory testing (e.g., drill cuttings, sidewall core or damaged core) and the feasibility of combining digitized images with numerical calculations to predict properties and derive correlations for individual reservoir rock lithologies.
Managing pipelines in operation divisions of PETRONAS Carigali Sdn Bhd (PCSB) always as important as producing a hydrocarbon from its fields. Three (3) PCSB domestic operation regions namely Peninsular Malaysia Operation (PMO), Sarawak Operation (SKO) and Sabah Operation (SBO) are currently operating a total of more than 277 pipelines. Due to aging pipelines that PCSB are currently operating in which some are more than 25 years, a prudent management in term of its risk and consequence as well as cost of operating the aging pipelines need to be re-assessed via a comprehensive management system that can be used as a tool to inform PCSB management in term its integrity.
It is imperative that an integrated pipeline integrity management system (PIMS) to be made available to ensure pipelines integrity always available upon request and are up to date with the latest integrity status. Before the development of the PIMS for PCSB, all the pipeline integrity management for each region is residing with the individual(s)/units that performing specific functions e.g. inspection, engineering and operations. With the development of the PIMS, all those effort related to pipeline integrity are managed and integrated in more effective manner by single point reference i.e. Pipeline Competent Person in PCSB. It was determined that the adoption of an integrated approach in managing pipelines would be the optimal way to facilitate prudent management and surveillance of pipeline integrity.
The purpose of this paper is to discuss the effort that had been put in making the PIMS project materialised as well as to share the experience in developing the system with the help of other resources from internal and external of PCSB organisation.
Having the PIMS implemented in PCSB it will reduce considerable amount of time and effort that previously needed to acquire the integrity status of pipelines. Adopting an integrated team effort throughout the company has provided the necessary forum for open and inter-disciplinary exchange of ideas and experiences on PIMS related matters. As a result, it has aided in enhancing cooperative actions and the capturing of synergism, all to the benefit of the PCSB.
In a finite difference scheme, continuous multi-phase flow variables that appear in conservation equations such as saturation are spacially discretized on grid blocks. When coarse grid blocks are used for reservoir simulation, the numerical solution tends to magnify the discretization error. This causes numerical errors called as coarse grid effect.
Through a coarse grid reservoir simulation, injection pressure showed quite difference with that of fine grid model.
This is because total mobility at the injection well is defined by the finite difference based average saturation in the injection well grid block. In other words, the saturation gradient that would appear in the near-well region is ignored in such coarse-grid system.
In this study, the areal average saturation in the injection well grid block was calculated analytically by the newly derived radial displacement approximation which was extende from the Buckley-Leverett linear displacement problem, taking account of pressure difference between the injection well and the injection well grid block. Consequently, the corrected total mobility was provided, by defining new value of total well index and transmissibility.
The injection pressure computed by this technique with for coarse grid model is reasonably agreed with the numerical solution of fine grid model. The practical application of the developed well-pseudo is validated through an actual reservoir simulation study.
Global uncertainty and heavy competition require E&P companies to remain effective in investments and prudent in people development. These challenges compel us to have a learning system that links to business objectives and enables effective knowledge transfers. This paper outlines a structured learning framework which is a competency-based system that links learning objectives to desired business results and establishes a mechanism for identifying, developing, measuring and tracking individual competencies and capabilities.
The Technology Mastery Program is part of an integrated program, which covered data, processes, tool and people as the heart of the program. It is to maximize the return on investment in technology, reduce interpretation cycle time, enhance the workflow application, improve quality of the result and decision-making.
The structure uses a credit-based system to monitor and measure technical competencies through accreditation of technical skills. The learning curriculum is built to facilitate cross training by offering broad-based competencies in multiple disciplines. The learning sequence complements the methodology by providing web-based training before, and after the course, immediate application in the current work, mentoring, and assessment. The process addresses common problems that occur with many training programs including timeliness, relevancy, transfer of skills to the job, and learner accountability for results.
People can accelerate their acquisition of technical knowledge and increase professional development in this self-driven framework. Furthermore, the program is aligned to meet the requirements that lead to the specialist technical ladder which was recently introduced in the company.
The program was conducted in stages commencing mid-August 1999 and has proven to be very successful. It is currently in its third stage and as each stage progressed, new disciplines were added and program upgrades made based on lessons learnt. As of June 2003, one hundred and eighty five staffs from Geology, Geophysics, Formation Evaluation, Reservoir Engineering, Production Technology and Petroleum Economics have enrolled into this program. They are working either in exploration, development or production based projects and have benefited from this program, which resulted in reserves addition, and profitability of the company.