FIELD PRODUCTION STRATEGY BASED ON INTEGRATED SYSTEM MODELING Juan G. Faustinelli Europe, Asia & Africa - Upstream Paris, October 29th 2009 Full Field Modeling Data Access Automation Surveillance Monitoring Operation Optimization DAYS Reservoir Simulation Diagnostics Production Optimization Field Optimization MONTHS YEARS – Still uncertainty which workflow should be applied – Need for improved communication (work silos) System Modeling Approach Well Scheduling Boosting Artificial Lift Surface Configuration IGIP IPR VLP CO2 control Well Production Constraints System Modeling Approach Well Scheduling Boosting Artificial Lift Surface Configuration IGIP IPR VLP CO2 control Well Production Constraints System Modeling Approach The integrated modeling approach inter-relates the reservoir variables, well productivities and surface configuration, and is capable of estimating an integrated field production plan Well Scheduling Well Constraints Production Limitations High & Low SEP Control Variable System Control Understanding the System Drivers • How can we select the best option for a field development plan? – Assumptions are a key factor – Iterative process considering the main drivers • Boosting / artificial lift & CO2 strategy • Field process start up • Production plateau Understanding the System Drivers • How can we select the best option for a field development plan? – Assumptions are a key factor – Iterative process considering the main drivers • Boosting / artificial lift & CO2 strategy • Field process start up • Production plateau Maximize NPV - Corporate & stake holder interest - Lower Capex + Opex + Abex Strategy “ It is about being different, it means deliberately choosing a different set of activities to deliver a unique mix of value” M. Porter Strategy ”It is about being different, it means deliberately choosing a different set of activities to deliver a unique mix of value” M. Porter “The framework which guides those choices that determine the nature and direction of an organization” Tregoe and Zimmerman Strategy ”It is about being different, it means deliberately choosing a different set of activities to deliver a unique mix of value” M. Porter “The framework which guides those choices that determine the nature and direction of an organization” Tregoe and Zimmerman “It is a plan of action designed to achieve a particular goal” Wikipedia Gas Production Forecast CO2 strategy Plateau duration Boosting approach Qg time Gas Production Forecast Total Production vs. Qg Sales Gas time Strategy Blending period Vol. Main asset exploitation Uncertainty reduction time Oil Production System Production Forecast Qo time Power Producer A WSW A Total A Production & Injection System time Underground Gas Storage SLUG CATCHER Offshore UGS PLATFORM TRUNKLINE RESERVOIR Integrated System Modeling Drilling Engineering Operation Maintenance Activities Reservoir Wells Compressors Pipelines Plant Assets Personnel Tools Resources Integrated System Modeling Drilling Engineering Operation Maintenance Activities Reservoir Wells Compressors Pipelines Plant Assets DRIVERS & CONSTRAINTS Personnel Tools Resources Integrated System Modeling Drilling Engineering Operation Maintenance Activities Reservoir Wells Compressors Pipelines Plant Assets Personnel Tools Resources Drivers & Constraints Results Gas & Oil Forecast Assumption • Are we using the right scale? Assumption • Are we using the right scale? Assumption • Are we using the right scale? Assumption • Are we using the right scale? • Can we integrate better all the information available? • Do we have to get more information before making FID? “Far better an approximate answer to the right question, than the exact answer to the wrong question, which can always be made precise.” John Tukey (1962) Where are the uncertainties? UNCERTAINTY PREDICTION Uncertainty Uncertainty Uncertainty Data Parameters Model Errors Where are the uncertainties? UNCERTAINTY PREDICTION Uncertainty Uncertainty Uncertainty Data Parameters Model Errors Measurement Production Not taking into errors allocation account all the physics + Unknown knowns Where are the uncertainties? UNCERTAINTY PREDICTION Uncertainty Uncertainty Uncertainty Data Parameters Model Errors Measurement Production Not taking into errors allocation account all the physics + Unknown knowns Human Factor Where are the uncertainties? UNCERTAINTY PREDICTION Uncertainty Uncertainty Uncertainty Data Parameters Model Errors Human Factor Measurement Production Not taking into Overconfidence errors allocation account all the Experience Who is doing it? physics + Unknown knowns Pessimistic vs. Optimistic Real Time – Integrated System Modeling process people technology Importance value hours days weeks months years life of field - Creating multi-disciplinary team environment - Less time collecting data - More optimization (analyzing more information than generating it) Uncertainties on the production forecast • Reservoir heterogeneities • Technology advancement during the life of the asset • Oil volumes measurements • Ignoring low probability high impact • Corporate management change • Confusing target • Data difficult to analyze • People skills • Oil & gas price Can we leave it to the computers? Kasparov vs. Deep Blue Automatic System vs. Automated System Detach decision from engineers Engineers make final decision (requires strong algorithm / workflow) (requires experience for each asset) Can we leave it to the computers? Kasparov vs. Deep Blue Automatic System vs. Automated System Detach decision from engineers Engineers make final decision (requires strong algorithm / workflow) (requires experience for each asset) “Experience is simply the name we give our mistakes” Oscar Wilde Thank you