Svalex 2007 August 2007 Longyearbyen, Svalbard, No

Field DevelopmentField DevelopmentSvalex 2007 August 2007

Longyearbyen, Svalbard, No

AgendaAgenda

ScheduleOverview of Field DevelopmentSimulation conceptLearning PointsCH1 Reservoir characterizationCH2 Design BasisCH3 Offshore StructuresCH4 Execution planSimulation login details

ScheduleSchedule

Wednesday 22 August 10.00 Introduction to OilSim Field Development, basics of

field development. 11.00 Live demonstration 12.00 End first part ----------------------------------------------------------------- 16.00 Student expectation and comments 16.30 Simulation cycle 1 start, flexible deadlines Simulation cycle 2 start, flexible deadlines 18:30 Testing results, comments and suggestions 19.00 Course ends

OverviewOverview

Enhance your overall understanding of hydrocarbon field development

Common scenario to work onMultidisciplinary challengeYou are a multidisciplinary team in charge of submitting

the best technical and economic proposal for a hydrocarbon field development.

Your task is to find the proposals with the best net present value and the highest Knowledge points.

Simulation ConceptSimulation Concept

The simulation comprises four challenges in a cycle.A cycle represents the typical steps in an

offshore hydrocarbon field development

CHALLENGE 1RESERVOIR

EVALUATIONINPUTS• RESERVOIR DATA• ECONOMIC DATA• SITE DATA• EXISTING INSTALLATIONS• ETC.

CHALLENGE 2DESIGN BASIS

CHALLENGE 4PROJECT

EXECUTION PLAN

CHALLENGE 3FACILITIES AND

CONCEPT SOLUTION

RESULTS• NET PRESENT VALUE• KNOWLEDGE POINTS

Simulation conceptSimulation concept


CHALLENGE 1: RESERVOIR CHARACTERIZATIONStudy the formation and its fluids to determine production profile and drilling schedule

CHALLENGE 2: DESIGN BASISConsideration of Financial, Environment, Process and Risk Factors to set the basis for the project development

CHALLENGE 3: INSTALLATION AND CONCEPT SOLUTIONEvaluation of different installations and operational options to produce the hydrocarbons in place

CHALLENGE 4: PROJECT EXECUTION PLANPlan the execution of the project from drilling to start up, choosing different providers and determining the time for each milestones


Every time that a cycle is completed, the NPV of that proposal and the KP are calculated.

Completing several cycles will allow you to consider other options and evaluate its impact.

Winning team: best combination between NPV and KP

Learning pointsLearning points

How to estimate oil in place.Surveys used for reservoir characterization.The importance of design basis.Different concept solutions and facilities used in an

offshore field development, according to their technical capabilities and SHE (safety, health and environment) issues.

Offshore Execution plans and providers selection.

StructureStructure

Challenge 1◦ Type of reservoir◦ Porosity◦ Permeability◦ Pay zone◦ Drive mechanism.

Challenge 2◦ Site conditions◦ Environmental conditions◦ Financial and economics◦ Fluid processing capacities◦ Facilities requirements◦ Operational strategies

◦ Recovery factor.◦ Production Profile◦ Drilling schedule◦ Hydrocarbon quality◦ Knowledge points

◦ Design constrains ◦ Knowledge points

StructureStructure

Challenge 3◦ Identify the concept

solution◦ Place the structures◦ Place the sub sea systems◦ Connect elements

Challenge 4◦ Activities Plan ◦ Activities providers and

contractors◦ Cycle closure and

technical results.

◦ Concept Solution◦ Type of structures◦ CAPEX investment◦ Knowledge points

◦ Execution plan◦ Net present value◦ Total Knowledge

points

Challenge 1 Reservoir CharacterizationChallenge 1 Reservoir Characterization

Fill in form


SurveysEach task is explained in the glossary, to solve them you may need surveys or formulas, if any doubt arise, you should contact the facilitator and ask for extra help.


PVT◦Pressure-Volume-Temperature (PVT) that describe the physical property and phase behaviour of a hydrocarbon mixture.

Description of phase behaviour Identification of potential solids problems Measurement of viscosity for fluid mobility GOR, compressibility and shrinkage data for reservoir Recovery estimates Input for EOS and reservoir modelling


PVT


Porosity◦The porosity of a rock is a measure of the storage capacity (pore volume) that is capable of holding fluids.

◦Absolute porosity◦The effective porosity.


Porosity

Porosity value Classification [%]◦0–5 insignificant◦5–10 poor◦10–15 fair◦15–20 good◦> 20 excellent


Permeability◦ The permeability is a property that expresses the capacity of the porous medium to transmit fluids.◦ It is a dynamic variable ◦ Measured in millidarcy ◦ The symbol is k. ◦ Greater permeability, in general, corresponds to greater porosity, but this not an absolute rule◦ Permeability is not necessarily the same in different directions. ◦ In general, the horizontal permeability is greater than vertical


Permeability

Permeability value Classification [mD]◦1–10 poor◦10–100 good◦100–1000 excellent


Pay zone◦The pay thickness is a portion of a reservoir that contains economically producible hydrocarbons.

To determine the height of the pay sand, well log are performed with instruments (called sondes) which are lowered down the borehole on armored electrical cable (called a wireline). With different tools to determine several paramenters in OilSim, Gammaray and Resistivity log are the ones to be used


Pay zone


Pay zone Gamma ray log:

A common and inexpensive measurement of the total natural radioactivity, measured in API units. The measurement can be made in both openhole and through casing. Shales and clays are responsible for most natural radioactivity, so the gamma ray log often is a good indicator of such rocks

Resistivity log:A log of the resistivity of the formation, expressed in ohm-m. The resistivity can take a wide range of values, and, The resistivity log is fundamental in formation evaluation because hydrocarbons do not conduct electricity while all formation waters do


Drive mechanism The drive mechanism is defined as Natural forces in the

reservoir that displace hydrocarbons out of the reservoir into the wellbore and up to surface.

◦ Each reservoir is composed of a unique combination of geometric form, geological rock properties, fluid characteristics, and primary drive mechanism.

◦ It has been observed that each drive mechanism has certain typical performance characteristics in terms of:

Ultimate recovery facto Pressure decline rates Gas-oil ratio Water production


Drive mechanism


Well Completion◦ In Olsim an optimized performance analysis of the total producing system from the reservoir rock through the completion, well bore and gathering system is

presented to the participants. They have the task to choose the size of the tubing to determine the most suitable well production rate.

3 1/2” tubing

IPR

P Res

PRODUCTION BENEFIT FROM INCREASING TUBING SIZE

5 1/2” tubing

Q (3 1/2”) Q (5 1/2”)

Rate

FB

HP


Well Completion

◦ The tubing size will affect the following among others:

Less or more production

Well intervention due to sand production

Excessive pressure drops can generate tubing failures


Secondary recovery/Injection The injection of either water or gas into the reservoir is usually referred to as secondary recovery. The aim of the secondary recovery is to balance the withdrawn fluids and in that way maintain reservoir pressure..


Secondary recovery/Injection◦ In general water flooding generates an increment in the recovery factor greater than gas injection.

◦ If the formation’s permeability is low water injection rate will be low as well, so gas injection is preferred

◦ If brine has to be disposed water injection will become useful to reinject it.

◦ Availability and marketability of the gas have to be considered if this fluid is worth to be use in a reservoir maintenance program.

◦ Gas Injector wells are usually less in quantity comparing to water injectors, but water pumping systems are cheaper than gas compression systems.


Results


Results


Results First oil: Fields are assumed to start production at the

time given in the latest available execution plan. Production: fields are assumed to ramp up to

plateau/peak production rapidly. First year production is calculated from when during the year the field is supposed to go on stream. Eventual later tie-backs are assumed to come on stream at the time given and to keep the plateau level until decline sets in.

Plateau/peak level: Any information on plateau/peak level is used usually represent economically a % of the reserves. If no such information exists an estimate based on the production capacity of the existing production unit is made. The peak level is assumed to be constant until the decline phase sets in.


Results Decline: The decline phase sets in when prior production

plus production during decline exceeds the best reserve estimate with 10 per cent. The decline is assumed to be about 20 per cent annually, and this illustrates the operators will to keep the fields at plateau levels as long as possible.

Reserves : Numbers on proven plus probable reserves are used whenever the information is available. If information on oil in place is given, the most optimistic estimate of the recovery factor from the operator is used. Eventual upsides on reserves are included.

Challenge 2 Design basisChallenge 2 Design basis


The design basis is one of the most important document in an engineer design.

It will provide all necessary information to avoid misunderstanding between the technical departments involved.

It will provide all the technical boundaries and capabilities for the installation design.


Site conditionsThis data it is mainly use by process

engineers to design equipments and pipelines regarding flow assurance and heat and mass transfer.


Environmental conditionsTo define the environmental condition of the

place were the development will take place, in order to choose the most suitable installation to face potential hurricane, earthquakes risk, among other factors.


Environmental conditions

Hurricane map Earthquake map


Environmental conditions

Typhoon, after Rita hurricane

After Lillie hurricana


Financial and economicsIn this part it will be established all the premises to

perform an economical evaluation of the development proposals.◦ Product for sale◦ Sales prices◦ Taxes◦ Investment incentives

The surveys to be used are named Market statistics, and then you should read the newspaper from time to time to find out more data


Financial and economics

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10+

Oil stable

Oil unstable

stable Condensate

unstable Condensate

LPG

NGL

Rich gas

Sales gas and LNG

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10+

HYDROCARBONS AND SALES PRODUCTS


Financial and economics

Reference sales productsBrent for north seaWest Texas for US Gulf

The field product sales price will depend on:Market consumptionAPIContaminants, sulphur, asphalteneField Locationand others


Fluid processing capacities and facilities

Will determine the process equipment to process and conditioning the hydrocarbons.

You should look at the result in ch1, and existing facilities surveys


Operational strategies

◦ Will determine which existing installation can be used to reduce capex (capital expenditure)

◦ Will determine the country risk were the development is going to be

carried out.

Challenge 3 Concept solutionChallenge 3 Concept solution

•Choose the right installation, according to risk, and technical capabilities.•Study the glossary to find hints•Ask the facilitators where you can find more information about these issues


The concept solution will depend on many factors:

Environmental conditions Operational criteria Limited availability of construction sites. Subjective preference of an owner/operator under

certain circumstance like country risk and operational experience.


Field development options

Recoverable reserves

Dis

tan

ce

to

ex

isti

ng

in

fra

str

uc

ture

Permanent stand-alonedevelopment

Mobile production

system

Satellitedevelopment

Extended Reach Drilling

Field size , distance to existing available infrastructure or land, and seabed depth are governing factors


In a field development, the structure for use offshore are constructed as a drilling platform and will also be used as a production platform.

The structure will act as a stabilizer and conditioning for the well production above the ocean floor.

Flowline risers, helicopter landing pads, and mooring facilities for crew boats and supply boats are necessities that must be supported by the structure.


Fixed Platforms: ◦ Sit on the sea floor.◦ They are held in place either by the total weight of the

structure or by steel piles driven into the seabed and attached to the structure.

◦ The group include: jackets, jackups, gravity based structures, compliant towers and its variations.


Floating systems: ◦ The topsides are similar to the fix platforms, nonetheless

because they are floating structures they have to be moored in place with tendons or wire ropes and chain in order to stay connected to the subsea systems below and not be drag by sea draught.

◦ The group include: ◦ Tension leg platforms, ◦ Spar, ◦ Floating production storage and off loading ships, ◦ Semi submersibles platforms

Challenge 3 Concept solutionChallenge 3 Concept solutionWater depth

Nu

mb

er

of

wells

Fixed platforms

FloatersWet trees

TLP, SparDry trees

10

20

500 m


Offshore installations capabilities


Subsea layout

Example:•36 wells•9 well clusters•3 tie-back systems


Sub Sea elements


Subsea elements

Export pipelinesImport pipelinesHydraulic pipesElectrical and signal wires


Development option Tie Back to an existing platform:

The investment is reduced using the spare capacity in the existing platform. It is a very suitable option for small developments.

Offshore to beach development:In this case onshore facilities are available, multiphase

production can be transported to the shore to process it. It is a good option to reduce capex when distances to shore are short. New Stand alone development:

When there are no existing installation and the recoverable reserves are large or the distance to shore is too far, New stand alone development can be considered using the platform that is most suitable for the surrounding conditions.



Process required in the platform


Process required in the platform



Artic condition

Challenge 4 Planning the exceutionChallenge 4 Planning the exceution

• Order the activities•Select the right provider to accomplish your schedule•Use your common sense.

Challenge 4 Planning the exceutionChallenge 4 Planning the exceution

Planning the execution

You may use the common sense

But.. That is the less common of the sense.

ResultsResults•Is not just money you have to do the right things.

Simulation environmentSimulation environment

WelcomeGo to: http://fdev.simprentis.comuse your user name and password

provided in the Explore session

Documents

Svalex 2007 August 2007 Longyearbyen, Svalbard, No