Guidelines & Recommended Practices Selection of Artificial Lift Systems for Deliquifying Gas Wells 3.4 Choose the Artificial Lift System Supplier This presents guidelines and recommended practices for selecting the Artificial Lift System Supplier, once the specific type of artificial lift has been defined for a particular well. - Consider such issues as: o Location and availability It is important to have an Artificial Lift System Supplier that is located near the field or has good access and availability to the field. Often it will be necessary to have rapid response to problems of equipment selection, design, installation, operation, maintenance, and optimization. The Supplier should be able to respond quickly. This normally means within a few hours or at most a few days. If a field is in a very remote location, it may be necessary for the Supplier to establish a base of operations in or near to the field location. Sometimes the choice of a Supplier will come down to the one who is willing and able to provide local support. o Staff experience Staff experience and expertise is important. Some Suppliers hire, train, and maintain expert staff that can provide excellent support. Others are more focused on selling equipment and are not willing or able to provide excellent advice and support. A good practice is to contact other Operating Companies that use a Supplier and ask them about the level of experience of the Supply Company staff. In some cases, a Supplier may have excellent personnel, which have an excellent reputation; but they are in another location, or are involved with other projects. It is important to have people with good experience and expertise who are available to provide advice and service when and where needed. o Reputation for service and support This is related to the point above. Some Suppliers focus more on marketing their equipment; some on serving their customers. Artificial lift systems must function well for long periods of time. Long-term service is important. The Supplier’s reputation can be determined by contact with other Operating Companies who use the Supplier. Once an artificial lift system has been installed, it must be operated, maintained, and optimized. Often, Operating Companies don’t have sufficient staff to perform these tasks on an on-going basis. So, often the Supplier is called upon to provide long-term support. In some case, the Supplier may Selection of Artificial Lift Systems for Deliquifying Gas Wells Page 2 even be called upon to operate the artificial lift system for the Operating Company. o Design capabilities There are many factors involved in good artificial lift system design. A good Supplier will ask the right questions about the field and wells, and will then assist the Operating Company in selecting and designing the artificial lift systems that are best suited to the needs of the location, field, and wells. An important aspect here is selection of the right materials if the production is challenging; e.g. deep, hot, sour, sandy, viscous, etc. A “good” system manufactured with the wrong materials will lead to early failure and excessive Repair and Maintenance costs. o Maintenance capabilities All artificial lift systems require maintenance. Some equipment can be repaired; other equipment must be replaced. Often, the processes of installation and operation have a signification impact on the life of the equipment and how often maintenance is needed. o Training capabilities Training is always important. A good Supplier should have a training department and highly qualified trainers. They should offer courses at their Training Center, and be willing to provide on-site training when required. Some Suppliers focus their training solely on their equipment. However, some offer more generic training that provides information on the type of artificial lift and its application; not only on the specific equipment and processes sold by the Supplier. o Willingness to work with alliances Some Suppliers are willing to development alliances or partnerships with Operating Companies. These can include creative ways to share costs, benefits, and risks. The best alliances create an incentive for “best” performance by both the Supplier and the Operating Company. o Questionnaire Here is a questionnaire that can be used to help evaluate potential Suppliers. 1. Location. Describe your location(s) that can provide service to our field. Where are they? What functions do they provide? How are they staffed? 2. Availability. Describe your access and availability to our field. How quickly can you respond to a request for assistance with equipment selection, design, installation, operation, maintenance, or optimization? How do you provide maintenance for your system(s)? Selection of Artificial Lift Systems for Deliquifying Gas Wells Page 3 3. Experience. Describe the experience of your staff, both in your company and in the local location. How is access to your most experienced staff managed? Can they be accessed when and if needed? 4. Service and Support. Describe your service and support philosophy? Do you repair and replace equipment, or do you provide only new equipment? Do you have a repair shop that can provide service to our location? Do you perform teardown analysis and root cause of failure analysis? 5. Installation. Describe your ability to provide equipment and services to assist with equipment installation and maintenance. Do you provide trucks, boats, wire line tools, cranes, etc? 6. System Operation. Do you work with Operating Company personnel, or will you operate our artificial lift system for us, if requested? 7. Design. Describe your approach to equipment design? Do you conduct research and development? What R&D programs are pertinent to our operations? How much do you need to know about our fields and wells to design artificial lift systems to “best” meet our needs? 8. Training. Describe your training programs. Who are your primary trainers? Where is your training provided? How long are your training programs? 9. Alliances. Describe your approach to forming alliances with Operating Companies.