Integrated Asset Modeling for Market Driven Gas Planning - GasAssure

Integrated Asset Modeling For

Market Driven Gas Planning

www.GasAssure.com

GasAssure

• Stochastic Simulation Ltd is an Australian

unlisted public company providing specialist

software and services to the upstream oil and gas

industry

• Product Portfolio:

Stochastic Simulation Copyright © 2014 - Confidential

Stochastic Simulation

• Cutting-edge IAM for gas planning solution

• Fully integrated “reservoir to market” gas planning solution

• Modern, clean and intuitive user interface

• Fast, robust core processing

• Infinitely flexible reporting

• Long history as corporate gas planning solution in large E&P companies


Outline

• An Integrated Asset modeling solution for market-driven gas planning

• The only truly integrated solution for back allocation of production based on multiple market demands

• An invaluable tool for short, medium and long-term planning projects as it offers a unique “reservoir to market” solution

• A fit-for-purpose approach, which is able to define, characterise and explore what-if scenarios for large scale, multi-billion dollar gas projects in a fraction of the time taken by current methods

• An intuitive, flexible, powerful, and easy to use interface


What is GasAssure?

4

• Integrated Asset modeling (or IAM) is computer modeling of surface and subsurface elements of a field development

• Historically the reservoir has always been modelled separately from the surface network and the facilities

• As the aim of an IAM is to provide a production forecast which honours both the physical realities of the reservoir and the infrastructure required

• Typical Components of an IAM – A subsurface reservoir model

– A gas delivery network

– A system availability model

– A system constraint manager

– A production optimisation algorithm

Stochastic Simulation Copyright © 2014 - Confidential 5

What Is Integrated Asset modeling?

Improved gas planning tools have proven to increase operator’s annual revenues in excess of $100 USD million. Including but not limited to:

• Additional spot cargoes 1

• Increased production of condensates and LPGs whilst fulfilling contracted and predicted gas demand 2

• Uncertainty quantification and planning strategies for “What If” scenario analysis

• Investigating additional Marketing/Commercial opportunities


Effective Gas Planning Tools = $$$

1. Lanner.com, (2014). Shell’s Revolutionary Terminal and Logistics Planning System | Liquefied Natural Gas | WITNESS. [online] Available at: http://www.lanner.com/en/case-study.cfm?theCaseStudyID=CA0D41D1-15C5-F4C0-990E96EA8969C456. 2. Selot, A., Kuok, L. K., Robinson, M., Mason, T. L. and Barton, P. I. (2008), A short-term operational planning model for natural gas production systems. AIChE J., 54: 495–515. doi: 10.1002/aic.11385

https://www.linkedin.com/vsearch/p?title=Wellsite+Petroleum+Engineer&trk=prof-exp-title


Uses of GasAssure

EXPLORATION PLANNING PRE-DEVELOPMENT PLANNING

POST-DEVELOPMENT PLANNING

• Production Profiling

• Decision Support • Optimisation

• Raising Finance for Exploration Projects

• Evaluation of project

• Contract Negotiation

• Drilling

• Cash flow forecasting

• Risk Mitigation

• Extending Field Life


Typical GasAssure Model Users

• Coverage of existing contracts

• Uncontracted / 3rd party gas opportunities Commercial

• Development strategy

• Successive optimisation / resourcing Development

• Performance Management

• Optimisation – ‘what if…’ Operations

• Business / finance processes

• Impacts of opportunities / threats

Business Planning

• Optimizing the allocation of gas reservoirs to meet short/medium/long term gas contracts

• Providing a timely solution for changing circumstances

• modeling all the elements with optimal detail to achieve practical solutions for production allocation

• Unique Challenges due to: – The Multi-product Network

– Nonlinear Pressure-Flowrate relationships in the wells and the trunkline network

– Production sharing contracts

– Operational Rules


Gas Planning Challenges


Striking the Right Balance

• Market driven approach

– Allows definition of complex markets (LNG, DomGas)

• Campaign triggering

• Complete control over production allocation

– Priorities and ranks

• Fully compositional

– Allows tracking of components from subsurface to markets

• Robust and very fast computational engine for solving multi-objective optimization problems


GasAssure’s Unique Capabilities

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Fully Integrated Solution


GasAssure Interface

Track production rate


GasAssure Interface

Demand

Deliverability

Threshold

NEN Trigger

• Markets – Back allocation to platforms and meters

– Fuel usage

– Exact histories (monthly / daily)

• Platforms – Allocations to products, markets, fuel & flare

• Facility Meters – Allocations to products and markets, fuel & flare

– Back allocations to platforms

• Reservoirs – Reserves allocated to products and markets


Reporting


Customized Data Reporting

Easy export option

Technical Insights


• Technical Design Objective

– Optimize production allocation from Gas Reservoirs to meet market demand

– Nonlinear Pressure and Rate solution

– Multi Objective optimization • With Market demand specification (gas quality, rates etc)

• Facilities with their demands and constraints

• Platforms with constraints

• Fuel usage and Product recovery


Reservoir to Market Optimization

• Reservoir options – Simple & connected Material Balance tanks

– Compositional

– Multi-layer

– Aquifer & depletion models

• Well description – Multiple completions

– Multiphase flow – tables or correlations

– Wellbore models simple & discretised

• Platform – Automatic event controls

– Constraint rollbacks

– Fuel, flare and product allocation accounting


Technical Features


Platforms and Wells

Reservoir Tanks with

Interconnections Wellhead with multiple reservoir

completion

Platform connecting Two

Wellheads

• Facilities Features – Arbitrary facilities with pressure drop functions

– Choke models

– Gas plant and separation

– Compression models

• Network Solver – Back allocation from markets

– Optimised supply match to markets each time-step

• Markets & Contracts – Multiple product delivery point

– Individual or notional contracts by product

– Delivery pressure, ranked, energy or rate, compositional

– Spot market


Technical Features


Facilities and Pipelines

• Nodes/Compressors/ExitNodes form GasAssure Facilities

• Allow hydrocarbons to be removed as Fuel/recovery

Pipeline are colored

Dark/Light Blue – HP/LP

• Pipelines provide flow connections and pressure drop models provide essential physics for back pressure.

• Provide mechanism to

– Represent contractual demands

– Apply safety buffer for production to meet ‘Peak demand’

– Control gas quality

– Assign ranks to assist allocation


Markets

• Mixed contract environment – Long / medium / short term

– Short term opportunity vs. long term obligations

• Compositional deliverability forecasting – LNG, domgas, power, LPG, C2, C3, etc.

– Blended stream / product specs range

– Gas plant products optimised for markets


Strategic Market Planning


Simple to Complex Models

• Easy Data entry and Quality check

• Quickly navigate and find information on required nodes in network

• Manage multiple node information in same window – Data Management View

– Gantt Chart for Node Status/Downtime

– Sensitivity Analysis

– Split networks – using Subnetworks/External Networks


Data Handling


Data Management View

Double Click to identify

Edit and QC property

Values

Open Tables to Edit


Gantt Chart

• Easily manage when a field is expected to be onstream • Find whether certain node status has been set for maintenance/workover etc


Sub-Networks


External Networks

• Methods for handling system downtime or Derating

– Average system availability entered as part of Market Demand

– Downtime entered throughout the system (Well, Platform, Facilities and Compression)

– Option to specify actual offstream dates for planned outages


System Availability

Cutting-edge IAM for gas planning solution

Fully integrated “reservoir to market” gas planning solution

Modern, clean and intuitive user interface

Fast, robust core processing

Infinitely flexible reporting

Long history as corporate gas planning solution in large E&P companies


Conclusion

• Software evaluation

– Desktop edition of GasAssure provided for testing

– SSL work with client to understand specific gas planning issues

– SSL build indicative model for testing

• Pilot Study

– Workshop with client to understand complete gas planning requirements, workflow, inputs and outputs

– SSL build complete model

– SSL build detailed reports as per requirements

– Full consultation and support provided through the process


Next Steps

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• Mixed markets – long term LNG contracts

– local domgas & LPG

• Specification range modeling – blended supplies from multiple fields

– ensure compositional ranges satisfied in future

• LNG train expansion issues – deliverability specification

– local domgas contracts

Case Study: North West Shelf LNG Expansion


• Peak gas > 1 Bscf/d winter

• Multiple markets – domgas, power, industry, C2

• Gippsland Basin gas deliverability – focused on reservoir / well performance

– pipeline interference effects

Case Study: Bass Strait


• Gas planning objectives: – variable demand statistics – allocate demand back to fields and optimise liquids – automatic recompletions & well tie-ins – facilities and equipment scheduling

• Seasonal and daily capacity issues – peaks within day as well as multi-day peak in month – delivery and market demand statistics

• Hourly supply / demand and linepack

• Improved “Quality of Service” – extracting value from the supply chain

Case Study: Bass Strait


• Southern Cone Gas Delivery System – 100 reservoirs, incl. Gas condensate.

– over 300 wells

– trunk line through fields

– export line to Brazil

– trunk spur to AltoPlano / La Paz

• GasPlan primary profiling tool for export planning – market analysis / export volumes

– basis profile for World Bank financing

– source volumes by proven, probable and possible

Case Study: Bolivia YPF-B & BHPP

PANAMA

NICARAGUA

COSTA RICA

FRENCHG UIANASURINAME

GUYANA

CHILE

ECUADOR

PARAGUAY

URUGUAY

ARGENTINA

BOLIVIA

COLOMBIA

VENEZUELA

PERU

BRAZIL

FALKLAND ISLANDS

SOUTH GEORGIA ISLAND

Caribbean Sea

Macapa

Serro Do Navio

Antofagasta

Arica

Concepcion

Iquique

Puerto Montt

Valparaiso

Cucuta

Mitu

Chiclayo

Huaraz

Puno

T alara

T rujil lo

Bahia Blanca

Comodoro Rivadavia

Cordoba

Mar Del PlataNeuquen

Puerto Santa Cruz

Rawson

Resistencia

Rio Gallegos

Salta

San Carlos de Bariloche

San Miguel De T ucuman

Ushuaia

Santa Cruz

T arija

Alvorada

AracajuBarreiras

Boa Vista

Boa Vista

Cachimbo

Campo Grande

CanavieirasCuiaba

Florianopolis

Gurupi

ImperatrizJacareacanga

Maceio

Porto Velho

Rio Branco

SantaremSao Luis

T arauaca

T efe

T eresina

Vitoria

Valdivia

Pasto

Baquerizo Moreno

Cuenca

Camopi

Bluefields

Ayacucho

Cerro De Pasco

Cuzco

Huancayo

Huanuco

Ica

Iquitos

Orellana

Durazno

T acuarembo

Puerto Ayacucho

Rosario

Belem

Belo Horizonte

Campinas

Curi tiba

Fortaleza

Goiania

Manaus

Porto Alegre

Recife

Rio De Janeiro

Salvador

Sao Paulo

Medel lin

Guayaquil

Valencia

Sao Goncalo

Barranquil la

La Paz

Sucre

Brasilia

Santiago

Bogota

San Jose

Quito

Port Stanley

Cayenne

St. GeorgeÕs

Georgetown

Panama

Castries

Paramaribo

Montevideo

Caracas

Buenos Aires

Managua

Asuncion

Lima

Kingstown


• 10 field development required

– Model reservoirs, wells, facilities, and pipe

• Optimise location, size & scheduling by NPV and ROR

– wells, compression, pipelines, facilities

– includes CO2 & dehydration

• Costing detail in model

– drilling learning

– CAPEX allocation schedules

Case Study: In Salah Gas, Algeria


• Santos Ltd.

– Model tuning objective

• 15 fields, 29 wells (38 completions), 3 compressors & 2 separators

• Highlighted systemic fluid allocation errors to wells and completions

• Production forecasting

– well scheduling & other installations

– fluid allocations / well management

Case Study: Daralingie Satellite S.A.


Copyright © 2013