Field Development
Svalex 2007 August 2007
Longyearbyen, Svalbard, No
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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
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Simulation cycle 2 start, flexible deadlines
 18:30 Testing results, comments and suggestions
 19.00 Course ends
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Schedule
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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
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INPUTS
• RESERVOIR DATA
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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
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Simulation concept
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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
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Challenge 1
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Type of reservoir
Porosity
Permeability
Pay zone
Drive mechanism.
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Recovery factor.
Production Profile
Drilling schedule
Hydrocarbon quality
Knowledge points
Challenge 2
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Site conditions
Environmental conditions
Financial and economics
Fluid processing capacities
Facilities requirements
Operational strategies
Structure
◦ Design constrains
◦ Knowledge points
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Challenge 3
◦ Identify
the
concept
solution
◦ Place the structures
◦ Place the sub sea systems
◦ Connect elements
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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
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Fill in form
Challenge 1 Reservoir Characterization
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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
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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
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PVT
Challenge 1 Reservoir Characterization
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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
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Porosity
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Porosity value Classification [%]
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0–5 insignificant
5–10 poor
10–15 fair
15–20 good
> 20 excellent
Challenge 1 Reservoir Characterization
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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
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Permeability
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Permeability value Classification [mD]
◦ 1–10 poor
◦ 10–100 good
◦ 100–1000 excellent
Challenge 1 Reservoir Characterization
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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
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Pay zone
Challenge 1 Reservoir Characterization
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Pay zone
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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
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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
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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:
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Ultimate recovery facto
Pressure decline rates
Gas-oil ratio
Water production
Challenge 1 Reservoir Characterization
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Drive mechanism
Challenge 1 Reservoir Characterization
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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
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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
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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
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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
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Results
Challenge 1 Reservoir Characterization
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Results
Challenge 1 Reservoir Characterization
 Results
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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
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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
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The design basis is one of the most
important document in an engineer
design.
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It will provide all necessary information to
avoid misunderstanding between the
technical departments involved.
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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.
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Challenge 2 Design basis
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Environmental conditions
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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
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Environmental conditions
Hurricane map
Challenge 2 Design basis
Earthquake map
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Environmental conditions
After Lillie hurricana
Challenge 2 Design basis
Typhoon, after Rita hurricane
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Financial and economics
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In this part it will be established all the premises
to perform an economical evaluation of the
development proposals.
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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
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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
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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
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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
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Challenge 2 Design basis
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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
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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
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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
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In a field development, the structure for use
offshore are constructed as a drilling
platform and will also be used as a production
platform.
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The structure will act as a stabilizer and
conditioning for the well production above the
ocean floor.
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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
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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:
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jackets,
jackups,
gravity based structures,
compliant towers and its variations.
Challenge 3 Concept solution
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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
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Offshore installations capabilities
Challenge 3 Concept solution
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Subsea layout
Example:
•36 wells
•9 well clusters
•3 tie-back systems
Challenge 3 Concept solution
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Sub Sea elements
Challenge 3 Concept solution
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Subsea elements
Export pipelines
Import pipelines
Hydraulic pipes
Electrical and signal wires
Challenge 3 Concept solution
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Development option
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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.
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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
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Process required in the platform
Challenge 3 Concept solution
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Process required in the platform
Challenge 3 Concept solution
Challenge 3 Concept solution
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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
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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