Options, Strategies, and Critical Points in adjusting a Data Management Organization By Garry Nikola Kolafa, Petroleum Development Support Group Kuwait

Options, Strategies, and Critical Points

in adjusting a

Data Management Organization

By Garry Nikola Kolafa,

Petroleum Development Support Group

Kuwait Oil Company,

a Subsidiary of Kuwait Petroleum Corporation

PNEC

Petroleum Network Education Conferences12th International Conference

OnPetroleum Data Integration

Information Management and Data Management Copyright 2008

Philip C. Crouse and Associates, Inc.Ministry of Oil, KuwaitAll Rights Reserved

Data Management at KOC • Historically Data Management develops from the

Exploration Side of operations rather than the Production Side of operations, due to the large amounts of data that are acquired and processed. These large amounts, made it imperative to dedicate resources to the pure management of data.

• At KOC a large part of the Exploration Data was handled by Contractors rather than in-house.

• Production Data Management was initialized, conducted, and developed in-house KOC for its’ own growing needs due to these activities.

• Because of this atypical development and impending targets set by management, we found it necessary to restructure and expand data management to meet these goals.

Created by:Garry Kolafa

KOC Targets & Growth• Increasing Production from 2.5 to 4 million bpd by 2020

KOC Targets & Anticipated Growth

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DATA TSUNAMI

KOC = NOCNational Oil Company

• Not Always looking at Maximizing Production

• Production Quotas and Material Balance are more the norms

• Data Must be organized in a “National” way

• Energy Assets and Other Assets may be combined to form a National Database

• When my professor left college, (end of WWII):

20 Dry wells were drilled before 1 well produced

• When I left college (1970’s):

7 Dry wells were drilled before 1 well produced

• Today:

The average success rate has improved to drilling

3-4 Dry Wells before 1 well produces

To 1.8 Dry Wells before 1 well produces

In deep water environments

Benchmarking Exploration according to noted worldwide statistical information


Why the increased success rate ?• My Professor’s Days (20:1)

– Introduction of Field Geophysical Methods – improved structure delineation

• My Graduation Days til today (7:1)– Analog to Digital conversion in Instrumentation to allow data to be

processed and managed by computers in Geophysics– Intro and practice of 3D Seismic within Geophysics– Improved Structure Imaging & Data Management from Geophysics

• Today Land (3:4) Deep Marine (1.8)– Combination of 3D Seismic and CSEM in Geophysics– Horizontal Drilling, Geo-steering guided by Geophysics &

Visualization– This is all made possible by Data Management that allows different

data types to be integrated and visualized.

Created by: Garry Kolafa

Production Character

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Urgency to Restructure

Industry Trends to take into Account• Exploration and Production Activities are converging• An interdependence is developing for requiring

information and knowledge sharing for better model constructions and decision-making. (IAM construction)

• Convergence is especially gaining momentum between Exploration Interpretation and Reservoir Engineering Departments

• Data Acquisition, Communication, as well as, Storage and Archival Technologies have improved

• 4-Dimensional Asset Control Techniques• Improved Visualization Technologies• Real Time Reservoir Monitoring • Integrated Asset Modeling for Production


Expected Business Drivers

• More dependence on newer, more sophisticated data generating systems.

• Better Imaging practices for structural and reservoir modeling, simulation, engineering, and management.

• Higher level of Integration Requirements driven by E & P convergence.

• Additional Prospects


Exploration Data and Activities needs rejuvenation and the application of more

targeted Geophysics

• Re-examine the resolution and techniques used in the past to see where data may be improved by re-shooting and reprocessing to accommodate for progress in newer technologies.

• Apply Geophysics more to solve current problems, especially some of our production problems, Geophysics is not just confined to Exploration.


Convergence


Visualization

Interpretation

Modeling

Re-Visualization

Re-Interpretation

Re-Modeling

Exploration Production

Reservoir Engineering

Geosteering

Real-Time Reservoir Monitoring

&

Time Lapse Seismic

Exploration1

2

3

45

6

Created by Garry Kolafa

Growth & Quality“A Critical Point”

• Many studies show that the highest risk to any organization experiencing growth is to maintain quality.

• Quality in operations is a direct function of select and sufficient manpower.• We will need to increase our manpower

selectively and sufficiently to increase our overall quality, as well as, to cope with the anticipated growth.


Re-structuring to reflect a Decision Centric Interface Considerations:

• SINGLE source for E & P data• Integration across applications, platforms. • Confidence in data ( quality , integrity , coherency )• Analytical tools• Calculation using industry standards• Industry standard naming convention across

Divisions and across Applications• Concurrent usage• Security• Compliance with SCADA and other relevant

methodologies


Production Data Sources, Structure, Standards

WELLS

Tank Farm

Gathering Centers


2000 +

28WITSML

ProdML

C M M

RTDCs

Tools Development Analytics Development Market Savvy (know-how)Data EngineeringResearch Data MiningArtificial IntelligenceVisualizationIKW Transformation

IT CollaborationWeb solutionsSecurity/DR/Database Systems integration (G&G/GISRM/DO)Workflow & connectivityBusiness processesReal-time / AutomationVisualization Centre

E&P IM Research

and DevelopmentE&P IM Integration

E & P IM Solutions

Field Dev., Expl., Drilling, PDS & Planning SupportDatabase AdministrationE&P Library / ArchivalField Data IntegrityQuality Optzn. SystemTechnical Field SupportSurv. Data TrackingProcess Improvement

Project Planning Team PlanningDM TrainingDocumentationReporting processDM Team PromotionPublications/ConferencesManagement ReportingExternal Clients

E&P IM Planning and Reporting

E&P IM Assets

E & P IM Support

E & P Information Management

After the Data Management Team went through an extensive Brainstorming exercise and took many of the above and following points into consideration we chose the following structure of four divisions to be able to evolve into an E&P Information Management Team:

Definitions of E&P DM Divisions• E&P DM Management & Expert Contact Port

– Management handles Upper Management, Contractor, and Third Party Contact

– The Expert Contact Port Administrator handles User Contact • E&P DM Asset

– This Division focuses on providing “asset-driven” support in all forms

• E&P DM Integration – This Division focuses on handling cross data movement

between applications, databases, and company divisions to provide “synergy” and to complete E & P convergence

• E&P DM Projects & Reporting– This Division focuses on handling projects, planning, reporting,

training, and documentation, it supports the front-end Divisions• E&P DM Research & Development

– This Division focuses on handling research and development issues and provides direct support to the front-end Divisions to maximize visualization and IKW transformation

The Team was confronted with the possibility of assimilating a component of our IT group, so the proposed option was to regroup the original four divisions into two, and add a third group which would allow the assimilation to take place. Roles and Responsiblities are mapped in the following slides.

Exploration & ProductionInformation Management

Exploration & ProductionIM Support

Exploration & ProductionIM Solutions

Exploration & ProductionIM Services

ROLES

The Support Team focuses on providing “core business-driven” support for Users and their Systems, maintaining existing or new solutions, and visualization facilities, such as our Visualization Centre.

The support team also conducts the distribution of data and information to relevant users and/or groups as decision support, which may be found in our databases, archives, and/or physical assets (e.g. cores, tapes).

The Solutions Team focuses on designing and providing solutions that utilize resources to provide the support and service teams with their requirements that ultimately address core business users and their processes, to either improve existing processes or provide new solutions where IKW transformations are optimal, visualization is maximized, and exacting analysis of data and information is achieved.

All solutions are designed to conform to company strategies, standards, and frameworks, that allow exploration and production to converge and activities to synergize.

The Services Team focuses on consolidating user and solution requirements, as well as, compliance and benchmarking information for liaising with IT.

They manage contractual parameters, Policies, Standards, Documentation, Change management, and the enforcement thereof.

Finally, they conduct service quality control, project monitoring, reporting and publishing.

1. Provide E&P solutions2. Market Savvy (know-how)3. Data Engineering4. Data Mining5. Tools Development 6. Analytics Development 7. Visualization8. Web solutions9. Automation solutions10. Real Time Solutions 11. Artificial Intelligence12. G&G solutions13. Security & DR planning 14. Process improvement 15. Systems integration 16. Business continuity planning17. IKW Transformation

E&P IM Solutions

1. Corporate & Asset Support(Field Dev., Expl., Drilling,, PDS, RM, WS, Planning, Fin.)

2. E&P Library/Physical Asset Archival3. Field Data Integrity4. Optimization & Decision support5. Technical Field Support6. Surv. Data Tracking7. Process Definition8. Production volumes allocation9. E&P DBA support10. E&P application & system support11. IM Support Service Center12. Cartography & GIS Support13. Web & IM Toolkit Support 14. Vizcenter support15. User awareness16. External support (K-Companies)

E&P IM Support

E & P Information Management

E&P IM Services

NEW option

1. Policies, Standards & Enforcement2. Consolidate E&P computing

requirements Infrastructure Architecture Systems Technical software Support & training

3. Contracts management Technical software On-site support External storage Core Analyses Laboratory services

4. Quality Assurance Service delivery quality Compliance & benchmarking Change Mgmt.

5. Desktop Technical services6. E&P IM Online services7. Project Documentation & Planning8. Publications, Reporting & Promotion9. Project co-ordination & monitoring10. IM Growth Planning

Training & manpower Conf. / Workshops / Careers

Industrial ProcessesDownward Integration Process ≈ Automation Process

Software Developed

Software Perfected

Software Introduced to Hardware

X-chip programmable gate array

FPGA X-chip solution perfected

1 – Chip Solution

Relationship Developed

Relationship Perfected

Relationship Introduced to System

System Developed

System Perfected

Automated System


Automation in Data Collection• Long Term Benefits:

– Supply reliable data for the calibration and re-calibration of production system models and production optimization systems.

– Ability for highly skilled and senior Production Operations management staff to access control room information for;

• Maximum utilization of production network capacity & treatment facilities

• Early identification of operational problems• Downtime Reduction • A data foundation for production optimization • Potentially remote access to operations

– Ability to capture measurements from many additional points in the production network without adding an additional significant workload to the Production Operations staff.


Structured and Controlled Growth of Relationships

DWP

PDM

DWP

PDM

DWP

PDM

DWP

PDM

PDM

PDM

DWP

DWP

EXPL RM

DOPO

WS

FD

DM CoreG & G DWP PDM ?PDM DWP

Relationship

Created by:Garry Kolafa 27-Nov-06

Renaissance Engineer & Geoscientists

• Today we need “renaissance” Engineers and Geoscientists with IT knowledge.

• The BIG QUESTION:

• The medical analogy,

Would you prefer to be operated by an IT tech who had retrained in surgery or by a surgeon trained to operate sophisticated equipment ?

Requirements for Global File Systems

to support construction of IAMs

• Scalable

• Secure

• Manageable

• High Availability

• High Performance

• Broad Platform Coverage


Data Management• Data Management is a specialized core

business activity within an E&P organization that is led by experts, who’s expertise extends into most, if not, all corners of the organization.

• It has developed into it’s own engineering science.

• Our DM team must be built by direct sourcing and lot’s of on-the-job training & educating.

• Data Management is a cumbersome task in the beginning, but finally, it becomes the heartbeat of the company.


• The vehicle for positive convergence between Exploration and Production is Good “Data Management”.

• Good “Data Management” enables us to have the oversight required to correlate and find the required “new” reservoirs with less risk.

• Good “Data Management” is built on harmonious cooperation with and between Exploration and Production.

• This Leads to good Reservoir or Asset Management, in other words, Good control over the company

KOC

E&P

Information Management

gives

you

Oversight


Thank You

Supporting Slides

Our Mission Statement:• Simply, to capture, store, and serve data and

help people make decisions.

• Comprehensively, to restructure, develop, and expand data management, to provide more efficient platforms to improve data access, availability, and preservation, as well as, allow multi-disciplinary teams to work seamlessly, to achieve synergy within KOC. Additionally, to aid in data transformation to produce information, knowledge, and ultimately company wisdom for added value.


Integrated SAN/NAS Example

Network10 GB/sEthernet

Backbone

SAN

For Corporate Data

Storage & Archival

NAS

For Domain Data Storage & Migration

NAS


NAS


NAS


Requirements

• Excellent Current Assessment• Intensive planning on all fronts• Cooperation with all departments• Generation of Consensus• Ongoing Market Evaluation • Cost Control and Risk Analysis• Proper Justification Procedures• Management Approval• Acquiring Comprehensive Resources• Timely implementation


Exploration Data Sources and Structure


Geology

&

Geophysics

Navigation & Positioning

Wireline Logging

Visualization

Interpretation

Modeling

Objectives• To accommodate the planned increase in

Production with improved quality• Have Production Converge with Exploration• Real-Time Reservoir Monitoring by DM• Enable Geosteering Capabilities by DM• Optimize Sweep Efficiency by DM• Implement Improved Data Acquisition,

Processing, and Final Information/Knowledge Delivery and Archival Technology

• Quantify Services to be commercially viable and alternatively understand how much particular activities require subsidies

• Create opportunities for, and develop young Kuwaitis in our activities


Other Objectives• Data Acquisition

– Reshoot certain prospects with correct target parameters

– Introduce Repeatability where required– New tailored acquisition for Kuwaiti conditions (cellular phone technology integrated with acquisition systems)

– Differentiate DM for Heavy Oil– Define “Fracturing” objectives in carbonate

formations – for both Heavy and Light Oil in terms of DM– What to do with mines ? – Map and Inform (GIS)– Alternatives to explosives for high frequency content – Intelligent Rigs, Well sites, and surface facilities


Other Objectives• Integrate a plan to manage water geothermally

for Heavy Oil extraction• R&T/DM Project: CSEM in shallow water• Populate more Geophysicists into Production

activities• Introduce the use of WITSML in DM• Improve Archiving and Disaster Recovery• Help position and pilot Drilling• Reach relevant ISO standards with

acknowledgement


Benefits of Automation realized by Data Management at JO/Texaco

• Daily data access vs. monthly data availability• 2.5 hrs/day gain in Production Data entry• 1 hour/day gain in Morning Report generation• 6.5 days gain in Well Test Validation• 2/3 days gain in Monthly Production Report • 4/5 days gain in various monthly report generation• 2 days gain in Shut-in Well Selection• 1 day gain in Back Allocation run• x days gain in Horizontal Sidetrack Selection• x days gain in Water Shutoff Selection• x days gain in ‘Wells Drop in Production’

Benefits over a year in time !• Daily data access vs. monthly data availability• 2.5 hrs/day gain in Production Data entry = 38 days• 1 hour/day gain in Morning Report generation = 15 days• 6.5 days gain in Well Test Validation = 67 days• 2/3 days gain in Monthly Production Report = 30 days• 4/5 days gain in various monthly report generation = 54

days• 2 days gain in Shut-in Well Selection = 24 days• 1 day gain in Back Allocation run = 12 days • x days gain in Horizontal Sidetrack Selection• x days gain in Water Shutoff Selection• x days gain in ‘Wells Drop in Production’

SAN versus NAS

• NAS – distributed, asynchronous 10Gb ethernet sure to compete with both performance and bandwidth compared to existing SAN solutions (copper/fibre limited distance) even at only 40% bandwidth utility.

• SAN – centralized , asynchronous and synchronous capabilities, existing high end performance solutions (fiber – extended distance)

• Combinations of NAS and SAN possible


Data Output

Data InputData Source

General Data Flow

Raw Data Generation

Data QC

Help Data Quality Control Design to provide and insure Quality Assurance

Data Integrity Check

Data Marked Ready for Use

Data tagged for storage

(temporary, permanent)

Data tagged for processing, transformation, & reporting & Visualization

Internally generated data from processing, transformation, and reports tagged for storage

Data Migration to Storage and Report locations

Data always delivered with DM seal of QA

Data Transfer

Data Validation

Raw Data Storage

ProductionIntermediate

Storage

ArchivalPermanent

Storage

ArchivalPermanent

Storage

DictateMigration

Path & Policy

Report Locations

BACK UP

DISASTERRECOVERY


Visualization

Simplified DM Asset Flow

Client Requirement Communicated

DM Responds by initiating DM’s automation process

A solution is driven into an automation process by testing and perfecting it within a simulated and real (the client’s) environment.

Client Approval

DM Process Maintenance


DM Asset Work Flow in Detail

Solution Developed

Solution Perfected

Solution Introduced to Process

Process Developed

Process Perfected

Automated Process

Asset Requirement

ProcessAcknowledged

Process Tuned

Process Modified

Solution Acknowledged

Solution Tuned

Solution Checked

Process Maintained

Process Ready

Process Checked

SolutionImplemented

Solution Ready


Simplified DM Project & Reporting Work Flow

Customized Workflows for Custom Projects and Reporting Requests

Client Request Communicated

DM responds by Planning, Scoping, Commissioning, and De-Commissioning

Projects

DM responds by delivering reports incorporating client requests and aiding in

design, documentation, visualization, and IKW transformations by liaising with

E&P DM R&D where necessary

DM handles archiving and distribution of reports


DM Project & Reporting Work Flow in Detail

DM Asset Results from a Maintained Process

DM Integration Results fromAn Automated System

Business or Asset Requirement

Project Planning Definition

Timelining & Budgeting

ManagementApproval

Project Commissioning

Project Commencement

Project De-commissioning

End of Project

Documentation

Relevant Data Compiled

Data Processed

ProcessedData Visualized

QA and Distribution

REPORT LOCATIONS

IKW Transformation


Simplified DM Integration Flow

Client Requirement Communicated

DM Responds by initiating DM’s automation process

A relationship is driven into an automated system via our automation process by testing and perfecting it within a simulated and real (the client’s) environment.

Client Approval

DM System Maintenance


DM Integration Work Flow in Detail

Relationship Developed

Relationship Perfected

Relationship Introduced to System

System Developed

System Perfected

Automated System

Business Requirement

System Implementation

System Tuning

Protocol IntroTo System

Protocol Testing

Protocol Tuning

Establish Protocol

System Maintenance

SystemCommissioning

System Tested

Protocol Tested

Protocol Tuned


Simplified DM Research & Development Work Flow

Client Requirements Communicated

DM responds by applying research or developing “in-house”, where necessary

to best meet the Client’s requirements taking all market possibilities into

consideration in the provision of tools and technologies

DM delivers optimally refined processes, systems, and tools to support both “asset-

driven” and integration focussedActivities and Projects

Customized Work Flows for Custom Research and Development Requests


DM Research & Development Work Flow in Detail

Customized Work Flows for achieving results in the following areas:

Visualization

InformationKnowledge

Wisdom Transformation

DM DevelopmentAnalytics & Tools

Prototype Development

DM ResearchStatistical Analysis

Data MiningArtificial Intelligence

Data EngineeringNeural Networks

Integrity Check DesignQC Modeling

Market SaavyMarket Gap Recognition

Technical PlanningManagement Support

InconsistentInformation In

SimplificationStandardizationSynchronization

Consistent, AccurateInformation Out


Road Map

Clean House

Close Data Gaps

Plan for Convergence and Growth

Converge

E & P

RT =Production

SideProgress

VIZ =Exploration

SideProgress

SetCore System

E & PConvergenceCompleted

andMaintained

ISORecognitionReach level

III or IVDM MM

ImproveCore System

ExpandCore System

Refine

Archival

Technology

Reach Level

VDM MM

PHASE

I II III IV V


How to develop a relationship ?

FINDER Schlumberger Database

(Find Her)

& KISR

Kuwait Institute of Scientific Research

(Kiss Her)


Documents

Options, Strategies, and Critical Points in adjusting a Data Management Organization By Garry Nikola Kolafa, Petroleum Development Support Group Kuwait