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Uptime and OPEX(OPerational EXpenditure) considerations on aging installations.

”Gained IRM(Inspection Repair & Maintenance) experience from the North Sea.”

Speaker: Mr. Peter BlachCEO - Offshore Center Danmark

WWW: www.offshorecenter.dk

The copyright of this entire training material vests by Offshore Center Danmark. All rights reserved.

The information contained herein is the property of above company and is supplied without liability for errors or omissions.

No part may be reproduced or used except as authorized by contract or other written permission.

Subjects:

• North Sea characteristics

• Challenges

• Approaches

• Lessons learned

Uptime and OPEX considerations on aging installations Subjects

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The North Sea:

• 1859: Oil trace discovery

• 1910: Natural gas discovery

• 1966: Exploration drilling

• 1971: Commercial production

• Defines brent crude oil standard

• Political stability in the region

• Matured infra structure

• Western Europe´s largest oil and gas reserves

• One of the key non-OPEC producing regions

• Totals more than 600 installations

Uptime and OPEX considerations on aging installations North Sea Characteristics

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UK

Aberdeen

Stavanger

Esbjerg

DK

DNL

N

Danish Sector:

Depth < 60 m

Reservoir rock: primarely chalk

Permeability: down to single digit mD

App. 60 offshore installations

Original recovery rate: 5-7%

Current recovery rate: 25-30%

Production: 350 MBOD

App. 130 producing wells

Horisontal drilling

Water injection wells

Swing producers

Uptime and OPEX considerations on aging installations North Sea Characteristics

Dan – the largest Danish Oil Field

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Source: Danish Energy Authority

Danish Offshore Activity The Danish Oil and Gas FieldsUptime and OPEX considerations on aging installations North Sea Characteristics

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Challenges

Challenges:

1. Installations out of design life time

2. Declining reservoir pressure

3. High and increasing water cut

4. Tie in of new discoveries

5. Aging process facilities

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Approaches

Challenge #1: “Installations out of design life time.”

Approaches:

• Life time extension calculation• Restricted operating conditions: Pressure, Flow, Sea state, etc.

• Decommissioning• Ongoing decom Front End Engineering & Design studies on operating

installations.

• In situe reinforcement/upgrading• Reinforcement bracing. Increasing deck loads. Subsiding.• Anode replacement. Recoating etc.• Structural retrofits. Monopiles, Modules etc.

• Corrosion/abrasion monitoring• Intelligent pigging scheme.• Coupons inspection.• NDT. Ultrasound.

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Approaches

Challenge #2: “Declining reservoir pressure.” (20%/yr).

Approaches:

• Lift gas• Simple and reliable technology to maintain flow.

• Water injection• Maintaining reservoir pressure. App. 3 BBL of water pr. 1 BBL oil.

• Gas injection• Gas injection. As gas request allows. Swing producers.

• Fracture Aligned Sweep Technology• Controlling flow of injected water. Well arrangement.

• Coiled tubing intervention• Shut down of selected marginal discoveries whilst maintaining

production from well.

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Approaches

Challenge #3: “High and increasing watercut.”

Approaches:

• Process upgrade• Separators, Heat exchangers, Cyclones, Water treatment facilities,

etc.

• Tracing of injection water• Shut down of injection wells. Drilling of new injection wells.

• Protection systems• High Integrity Pressure Protection System. (HIPPS)

Age

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Approaches

Challenge #4: “Tie in of new discoveries.”

Approaches:

• Unmanned Slim Tripod Adapted for Rig. (STAR)• Standardized modular approach. Manned/unmanned. Helipad.• Low cost. Both CAPEX and OPEX.• Standardized. Reusable.

• Horisontal/Directional drilling• Multiple marginals on same well.• Cased hole completion. • Coiled tube intervention.

• Tie in to existing centres• Power supply.• Pipeline to nearby center.• Service from nearby center. Shuttling. Source: Ramboll

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Approaches

Challenge #5: “Aging process facilities.”

Approaches:

• Strategic spare part stock inventory• Long lead items. Units for refurbishment.

• Kit systems management• Parts lists management linked to specific replacement jobs. Usually

outsourced.

• Comprehensive database on MTBF data• Mean Time Before Failure.

• Strategic replacement and refurbishment• Schemes based on MTFB data. “Replace before malfunction.”

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations Lessons learned

Lessons learned:

• “Reliability/Uptime is a function of redundancy and maintenance procedures.”

• “Flexibility in every aspect is key to embrace future technologies and produce “last oil” for decades to come.”

• “Substantial CAPEX investments do not necessarily reflect on future OPEX costs.”

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Source: Danish Energy Authority

Danish Offshore Activity Installations in the North SeaUptime and OPEX considerations on aging installations

Discussions

Questions?Mr. Peter Blach

CEO Offshore Center DanmarkNiels Bohrs Vej 6DK-6700 Esbjerg

Ph: +45 3697 3670Mail: pb@offshorecenter.dk

WWW: www.offshorecenter.dk