Field Development Svalex 2007 August 2007 Longyearbyen, Svalbard, No Schedule Overview of Field Development Simulation concept Learning Points CH1 Reservoir characterization CH2 Design Basis CH3 Offshore Structures CH4 Execution plan Simulation login details Agenda 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 Schedule Enhance your overall understanding of hydrocarbon field development Common scenario to work on Multidisciplinary challenge You 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. Overview The simulation comprises four challenges in a cycle. A cycle represents the typical steps in an offshore hydrocarbon field development INPUTS • RESERVOIR DATA • • • • CHALLENGE 1 RESERVOIR EVALUATION CHALLENGE 2 DESIGN BASIS ECONOMIC DATA SITE DATA EXISTING INSTALLATIONS ETC. RESULTS • NET PRESENT VALUE CHALLENGE 3 FACILITIES AND CONCEPT SOLUTION • KNOWLEDGE POINTS CHALLENGE 4 PROJECT EXECUTION PLAN Simulation Concept Get Challenge Submit Answers Simulation concept Analyze Surveys CHALLENGE 1: RESERVOIR CHARACTERIZATION Study the formation and its fluids to determine production profile and drilling schedule CHALLENGE 2: DESIGN BASIS Consideration of Financial, Environment, Process and Risk Factors to set the basis for the project development CHALLENGE 3: INSTALLATION AND CONCEPT SOLUTION Evaluation of different installations and operational options to produce the hydrocarbons in place CHALLENGE 4: PROJECT EXECUTION PLAN Plan the execution of the project from drilling to start up, choosing different providers and determining the time for each milestones Simulation concept 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 Simulation concept 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. Learning points Challenge 1 ◦ ◦ ◦ ◦ ◦ Type of reservoir Porosity Permeability Pay zone Drive mechanism. ◦ ◦ ◦ ◦ ◦ Recovery factor. Production Profile Drilling schedule Hydrocarbon quality Knowledge points Challenge 2 ◦ ◦ ◦ ◦ ◦ ◦ Site conditions Environmental conditions Financial and economics Fluid processing capacities Facilities requirements Operational strategies Structure ◦ Design constrains ◦ Knowledge points Challenge 3 ◦ Identify the concept solution ◦ Place the structures ◦ Place the sub sea systems ◦ Connect elements ◦ ◦ ◦ ◦ Concept Solution Type of structures CAPEX investment Knowledge points Challenge 4 ◦ Activities Plan ◦ Activities providers and contractors ◦ Cycle closure and technical results. Structure ◦ Execution plan ◦ Net present value ◦ Total Knowledge points Fill in form Challenge 1 Reservoir Characterization Surveys Each 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. Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization PVT Challenge 1 Reservoir Characterization 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. Challenge 1 Reservoir Characterization Porosity Porosity value Classification [%] ◦ ◦ ◦ ◦ ◦ 0–5 insignificant 5–10 poor 10–15 fair 15–20 good > 20 excellent Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization Permeability Permeability value Classification [mD] ◦ 1–10 poor ◦ 10–100 good ◦ 100–1000 excellent Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization Pay zone Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization Drive mechanism Challenge 1 Reservoir Characterization 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 5 1/2” tubing FBHP P Res IPR PRODUCTION BENEFIT FROM INCREASING TUBING SIZE Q (3 1/2”) Q (5 1/2”) Rate Challenge 1 Reservoir Characterization 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 Challenge 1 Reservoir Characterization 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.. Challenge 1 Reservoir Characterization 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. Challenge 1 Reservoir Characterization Results Challenge 1 Reservoir Characterization Results Challenge 1 Reservoir Characterization 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. Challenge 1 Reservoir Characterization 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 1 Reservoir Characterization Challenge 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. Challenge 2 Design basis Site conditions This data it is mainly use by process engineers to design equipments and pipelines regarding flow assurance and heat and mass transfer. Challenge 2 Design basis Environmental conditions To 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. Challenge 2 Design basis Environmental conditions Hurricane map Challenge 2 Design basis Earthquake map Environmental conditions After Lillie hurricana Challenge 2 Design basis Typhoon, after Rita hurricane Financial and economics In 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 Challenge 2 Design basis Financial and economics C1 C2 C3 C4 Oil Oil C5 C6 C7 C8 C9 C10+ stable 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 Challenge 2 Design basis Financial and economics Reference sales products Brent for north sea West Texas for US Gulf The field product sales price will depend on: Market consumption API Contaminants, sulphur, asphaltene Field Location and others Challenge 2 Design basis 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 Challenge 2 Design basis 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 2 Design basis •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 Challenge 3 Concept solution 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. Challenge 3 Concept solution Distance to existing infrastructure Field development options Mobile production system Permanent stand-alone development Field size , distance to existing available infrastructure or land, and seabed depth are governing factors Satellite development Extended Reach Drilling Recoverable reserves Challenge 3 Concept solution 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. Challenge 3 Concept solution 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. Challenge 3 Concept solution 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 solution Number of wells Fixed platforms TLP, Spar Dry trees 20 Floaters Wet trees 10 500 m Water depth Challenge 3 Concept solution Offshore installations capabilities Challenge 3 Concept solution Subsea layout Example: •36 wells •9 well clusters •3 tie-back systems Challenge 3 Concept solution Sub Sea elements Challenge 3 Concept solution Subsea elements Export pipelines Import pipelines Hydraulic pipes Electrical and signal wires Challenge 3 Concept solution 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. Challenge 3 Concept solution Challenge 3 Concept solution Process required in the platform Challenge 3 Concept solution Process required in the platform Challenge 3 Concept solution Challenge 3 Concept solution Artic condition Challenge 3 Concept solution • Order the activities •Select the right provider to accomplish your schedule •Use your common sense. Challenge 4 Planning the exceution Planning the execution You may use the common sense But.. That is the less common of the sense. Challenge 4 Planning the exceution Results •Is not just money you have to do the right things. Welcome Go to: http://fdev.simprentis.com use your user name and password provided in the Explore session Simulation environment