SPE Advancing Field Development Planning Towards Integrative Life Cycle Strategies Workshop

Technical Agenda Session 1: Life-Cycle Integrated Field Development Plan Session Chairs: Maan Al-Alasfoor, OXY; Said Al-Hasani, Petroleum Development Oman The traditional approach used in developing hydrocarbon (oil and gas) resources is to treat reservoir and production domains as separate silos. While conventional optimisation involves isolated studies of reservoirs, wells, and facilities, integrated life-cycle strategies can bring together all of the above components to create a life-cycle solution based on integrated plan from day-one. The ultimate goal of all successful energy production company is an efficient enhanced oil and gas recovery over the life-cycle of the field, coupled with fit-for-purpose and pragmatic approach to field development. The elements of its success constitute enhanced applications of project management principles to the development plans, EOR remedy strategies, and allocating surface and operation facilities with FDP considerations in mind. The urban planning and uncertainties associated with factors influencing the development will be briefly discussed. We will have a greater awareness of the elements defining our integrated FDP towards life-cycle strategies that are meeting the desired bottom-line and our stakeholder’s objectives. The primary aim of this session is to highlight the importance of integrated field development in all phases of an oil and gas life-cycle. This may range from Green Fit for purpose FDP development to an integrated planning toward life-cycle strategies. This session will provide an avenue for participants to share industry best practices, innovative techniques, case histories, and sharing experience with other petroleum industry professionals. Session 2: Risk Management and Uncertainty Session Chairs: Ashiq Moosani, Petroleum Development Oman; Nasser Albartamani, Oman Oil Company The complex geology in today’s reservoirs, coupled with expensive development schemes makes field development planning a very challenging task. Geologists and engineers are often faced with hard-to-make decisions with limited or incomplete knowledge during field development planning. To overcome the difficulties and to have more informed decisions it is necessary to have a complete assessment of risks and uncertainties of the reservoir to be developed. Almost all projects in the oil and gas industry have significant uncertainties in which some of them may lead to significant risks. To avoid any erosion of value of a project, a systematical and an accurate assessment of uncertainties must be undertaken to arrive at an optimised and risk-averted fully integrated field development plan. This session will discuss the following main key points in an effective systematic approach to risk management and uncertainties during field development planning: The identification of risks and ranking them according to their causes and impact Linking of risks to key uncertainties in the FDP concepts Assessment of impact of uncertainties on outcome Development of uncertainty mitigation and contingency activity plan Communication of risk and uncertainty assessment for informed decision making. During FDP, risk and uncertainties analysis should be kept simple by targeting the uncertainty parameters that have a material impact on the value of the project. One keeps in mind that even with the most rigorous technical approaches, the uncertainties may remain. Therefore, the activity plan should be tied to reservoir surveillance programme so that risk(s) is (are) mitigated and the uncertainties are reduced as the project moves into development and production phases. Session 3: Development Conceptualisation to Data Utilisation Session Chairs: Badr Amri and Hassan Al Saadi, Medco Oman The best practice of efficient data utilisation/management should have the objective to reduce the well/reservoir certainties and to optimise field development plan and operation. Many guidelines and standards are defined to meet intelligent field data acquisition and delivery requirements for reservoir and production engineers. The challenge of data utilisation is to provide access to the data that team can make optimal decision about field development plan in general and internally about oil deposition, field characteristics, well placement, and reservoir management. The objective of this session is to focus on essential and intelligent management data system that can be implemented in major following regions and help for better profile of field development plan: Production Exploration Drilling And also bring the optimisation plan of information/data quality for projects which related to field development strategy. Production Database Management records all wells that has been drilled. The data of wells include well header (information the last status of well), well test history, well production history, loss of production history, and support documents related to well activities i.e.: drilling document, logs, completion, work over, and project documents, and every user should be easy to access those data for analysis and make intervention. Output of Production Data Management is to generate a report for users and management includes: View well status/history: well data, well test, production, LOP, and documents Well performance: to know current performance/production from each well Daily, weekly, and monthly report Alert system through email once well production drop significant Production dashboard (KPI, production by fields, performance/production group by New Oil, Old Oil) Session 4: Technology and Competency Session Chairs: Alwaleed Alshukaili, Oman Oil Company; Rajesh Singh, Dalma Energy Company The utilisation of technological advancement is seen as critical component in improving the recovery and economics of hydrocarbon developments. The area of EOR was seen traditionally as tertiary step in field maturation process. However it has been shown that inadequate considerations for EOR early in the field development planning cycle can result in the technologies not compatible with the well and surface facilities in place. Building a complete vision for the development during the field development plan including the technological requirements during the life span of the field is gaining vital importance within oil and gas operators. The session on “Technology and Competency” addresses the issue and application of new technologies needed to keep pace with the requirement of development of matured fields with a view on IOR (Improved Oil Recovery) with secondary or tertiary EOR methods. In addition, technology improvements in unconventional tight oil and gas developments will also be explored in the sessions due to the growth of unconventional resources both in the region and globally. This session will also address the issues associated with the higher competency levels requirement for personnel involved in planning and operation of more complex EOR and unconventional resources. The topics that the presentation will focus on during the session are outlined hereafter: Technologies conducive to long term strategies and development of fields through the different phases of maturity, technology facilitating smoother and easier evolution from primary to tertiary phases of development. Driving technology development to enable more elaborate and comprehensive field development planning. Technology utilisation for unlocking potential in unconventional hydrocarbon resources. Improvement in drilling technology without considerable formation damage for enhancing quality of data gathering and productivity of wells. Bringing more drilling rigs as UBD-enabled to improve ROP and to manage formation pressure Use of latest advances in technology such as nano-technology for IOR applications. Looking into aspects of personnel training and development for competency enhancement of operational personnel working in EOR and/or unconventional resources. Session 5: Well, Reservoir, and Facilities Management Session Chairs: Majid Al-Mahrooqi, Petroleum Development Oman; Ozgur Karacali, Schlumberger Field Development Planning (FDP) is a vast process of gathering all available exploration and appraisal data, designing infrastructures such as surface and subsurface structures and forecasting future hydrocarbon production. FDP involves evaluation of multiple hydrocarbon production scenarios for the optimum drilling, well construction, and production and reservoir management strategies. FDP considers multiple field development plans for optimising economics, maximising ultimate recovery, controlling upfront capital expenditures especially for financially restricted projects, increasing operational flexibility and adaptability, and minimising risks. In essence the ability to conduct sound and sensible FDP programmes is the key for the success of an oil and gas production company. The Well, Reservoir, and Facility Management (WRFM) is a key component of the FDP that spans the full subsurface and surface production system and integrates multiple disciplines like reservoir engineering, production technology, programming, process engineering, production chemistry, and operations. This section of the workshop will focus more on the well, reservoir, and facilities management aspects of the field development planning activities. Forecasting optimal numbers of wells and their locations to produce hydrocarbons from a given reservoir is a very complex task given the uncertainties of the subsurface systems. A minor error on the design of the wells, surface facilities can incapacitate the well productivity for years. Hence the entire set of well, reservoir, and facility should be considered always together as a complementary group. Surveilling the hydrocarbon production day to day is as significant as drilling the wells on the right productive reservoir spots. Poor understanding of the reservoir descriptions can lead to insufficient decisions and hence degrade hydrocarbon production. In this session of the workshop the principles of accurate and sufficient reservoir surveillance that is resulting into informed decision making process for optimising hydrocarbon recovery will be discussed. In addition life-cycle management of the assets that include wells, reservoirs, and facilities will be addressed. Experiences of maximising hydrocarbon asset production will be elaborated. In particular the topics that are encouraged to be discussed in this session can be grouped as: Well, reservoir, facilities surveillance and advancements in surveillance technology Data integration and opportunity identification, prioritisation, planning, and execution Reservoir, wells,and facilities monitoring and optimisation to maximise asset value Well integrity monitoring and maintenance History matching and future performance forecasting Integrating operational aspects into reservoir management Surface facility design, integrity, availability, and improvement Improving reservoir modelling for better reservoir characterisation and represent ability Exception based monitoring Risk and uncertainty management Session 6: Sustainability and Economics Session Chairs: Ahmed Kharusi, Swift; Clare Billeau, Shell As a field development plan is likely to extend over many years (ideally tens of years), this will bring many challenge from both an economic and sustainability point of view. With any field development there is always the usual trade-off between Capex and Opex. However as field development planning moves towards integrating all the Life-cycle strategies, from primary through to tertiary recovery, then additional challenges arise. The types of challenges that could be encountered may relate to decisions about pre-investing for the future vs. retro-fitting later in life, with significantly higher costs, complexity and could interrupt existing operations and production. How much pre-investment is the optimum level given uncertainties in field performance, what future technologies will be available and future regulatory or legislative requirements? What will be the impact of the development on the environment? and how will the energy needs and natural resource (e.g. water) be managed over the full life-cycle in a sustainable way ? How will the waste streams be handled and do they change significantly over the life-cycle of the field development? What are the logistical requirements to implement the development plan (e.g. transporting equipment, chemicals, water, waste, etc.) and what is the impact on the local community and environment? What changes in regulations or legislation may occur over time and how would this impact the development? These and other challenges need to be worked, if advances in field development planning are to become a reality. Quick Links Committee Technical Agenda SPE Meeting Calendar Copyright 2003 - 2015 Society of Petroleum Engineers, All Rights Reserved ================= Workshop Description Gaining visibility into and control over the multitude of internal and external risks is one of the top priorities of corporations today. With a recent jump in regulatory mandates and increasingly active shareholders, many organisations have become sensitive to identifying and eliminating areas of risk— including operational, IT, brand, and reputation areas—from their businesses. Indeed, identifying risks no longer becomes the sole responsibility of specialists—executives demand greater transparency in mapping the risk exposure of the organisation so that they can effectively manage risk and plan longterm strategies. Running a business is about managing their related risks. A comprehensive, consistent framework, particularly in asset-intensive industries, is essential for success. In addition, a supply risk management programme is the perfect complement to sustain daily operations and mitigate losses in case of unexpected disruptions. If looked at broadly, operational risks can be segmented into people, process, product, and asset risks. These are highly inter-related, which makes it extremely important for executives to establish a strategy that crosses functional boundaries and effectively addresses all key areas of operational risks. While all of the risks shown can have adverse effects on an organisation, a critical asset going down can be the most detrimental. A failing asset will not only result in unscheduled downtime and lost production, but with a certain chain of events, could also lead to most of the other risks. The purpose of risk management is to create a comprehensive, standard framework that will help executives, employees on the plant floor, and maintenance personnel understand and manage the risks impacting their organisation, as well as establish processes to effectively address these risks, and implement procedures or controls to accept, mitigate, or avoid them. Establishing a risk management culture and empowering the workforce with the information to be productive decision-makers has been instrumental in achieving best-in-class performance. This SPE risk management workshop will explore how the best-in-class in the oil and gas industry’s organisations are implementing an integrated and flexible risk management framework to successfully document and assess risks, define controls, manage audits, identify issues, and implement recommendations and remediation plans. In addition, we will discuss and review best practices and how risk management should be approached pro-actively across the enterprise. SPE Workshop: Risk Management in a Changing Oil and Gas Industry Early Bird Registration Deadline: 28 March 2015 12–13 May 2015 | Sofitel Dubai Downtown | Dubai, United Arab Emirates Society of Petroleum Engineers www.spe.org/events/15aab3 ------ Our planet and environment suffered tremendous damage after the industrial revolution when people mass-produced and then mass-dumped products. In this session, we will discuss the challenges and key elements of the best practices of environmental risk management in the oil and gas Industry. One of the key challenges in the oil and gas industry is to conduct business with the most environmentally-friendly practices and reduce any significant impact on the environment. Key topics: • What are the best practices in environmental risk management? • How do we promote a sustainable environmental culture within the oil and gas industry? • What are the environmental risk challenges related to technologies? • Legislations compliance and liabilities pushing for more effective management of environmental risk within the oil and gas industry. ----------- Process safety is defined as a blend of engineering and management skills focused on preventing catastrophic accidents, particularly explosions, fires, and toxic releases, associated with the use of chemicals and petroleum products. The U.S. Occupational Safety and Health Administration (OSHA) 1910.119 defines 16 elements of process safety—those elements focus on 4 main areas or categories including: • Risk Management • Design and Construction • Operation, Inspection and Maintenance • Process Safety Culture These categories are inter-related to manage hazards and reduce risk of accidents. However, how can we ensure the successful planning, implementation and monitoring of the process safety elements? ----------- Oil and gas exploration and production activities are carried out in increasingly hazardous, remote and challenging environments. Human failures remain the greatest threat to complex and potentially hazardous systems. Furthermore, human factors are challenging to measure and, therefore, difficult to manage. Continuous focus and attention is required to optimise the interaction of individuals with each other, equipment used, and management systems applied. The management of human factors could have considerable benefits for business by increasing efficiency and by preventing incidents/accidents at work. ------------- Experience has taught us that Non-Technical Risks (NTRs) repeatedly constitute a major cause of value erosion for projects and assets in the oil and gas industry. Clearly, it is important to recognise and manage NTRs in a timely manner. However, NTRs also need to be quantified. What is the real impact on the project value? What is the probability? How do all uncertainties add up? NTR management effort not only allows a financial value to be put against the aggregated NTRs identified, but also has merit in truly understanding the risks and developing mitigation options across the technical, economic, commercial, organisational, and political spectrum. Identifying and quantifying NTRs avoids the frequent problem of project cost contingencies being based only on technical risks—understanding NTRs allows a truly balanced representation of the risks in the project or asset economics. =====================