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Comprehensive Guidelines For Oil Field Development Plan by G. Moricca
Comprehensive Guidelines For Oil Field Development Plan by G. Moricca
G. Moricca
Senior Petroleum Engineer
May 2017 moricca.guiseppe@libero.it
G. Moricca 1
Integrated Field Development Plan
Content
▪ Oil and gas project plan refers to the unique
requirements of managing science, technology,
engineering aspects and economical topics of projects
in the upstream oil and gas industry.
Once the basic organizational structure has been selected, all positions should be
identified, coded and a personnel mobilization schedule selected.
Time
▪ Cost control can be no better than the project control budget with which
actual costs are compared.
▪ Reservoir ▪ Drilling
structure ▪ Completion ▪ Production
▪ Reservoir ▪ Flow Lines ▪ Injection
Where connectivity ▪ Facilities ▪ Disposal Decom
▪ Reserves ▪ Delivering
is the mission
field? ing
1 2 3 4 5
Discovery Appraisal Development Production Abandonment
NPV
($)
Develop without
[B]
appraisal information
Cost of appraisal
$[A]
Develop with appraisal
[C]
information
▪ Procurement of materials
▪ Installation of facilities
▪ Time Frame - Offshore drilling often takes much longer to complete than onshore drilling.
An onshore well typically takes only a matter of days to drill, meaning production can begin
much faster. An offshore well can take months or years to build. This means an onshore
project is up and running much faster than offshore facilities.
▪ Offshore drilling presents much more of a challenge due to the shear depth of the water
just to reach the earth’s surface. The force the waves, especially in deep, rough waters,
presents major stability issues. This activity requires a manmade working surface to hold
the drilling equipment and facilities with some type of anchoring to the ocean floor.
▪ Onshore drilling rigs are the more classic drilling equipment and come in different sizes
and strengths. They are generally classified by their maximum drilling depth and their
mobility. Conventional land rigs cannot be moved as a whole unit and are typically used in
the petroleum industry while mobile rigs are drilling systems that are mounted on wheeled
trucks and come in two different types, jackknife and portable mast.
May 2017 G. Moricca 28
Offshore vs Onshore Drilling Cost
▪ The costs for onshore versus offshore drilling are much different. Offshore drilling tends to
cost much more due to the increased difficulty of drilling in deep water. The specific cost
depends on a number of variables, including the specific location, any special
circumstances, well size, design and drilling depth.
▪ On average, an onshore oil well costs between $5.0 MM and $10.0 MM in total well
capital costs. Additional lease operating expenses between $1 MM and $3.5 MM may also
play into the cost over the life span of the well. The following breakdown shows a general
explanation of where those costs are dispersed:
- Drilling – 30 to 40% of costs: This category encompasses any tangible and intangible
costs associated with actually drilling the well.
- Completion - 55 to 70% of costs: The completion costs include both tangible and
intangible aspects of things like well perforations, fracking, water supply and disposal.
- Facilities - 7 to 8% of costs: Onshore drilling activities require storage and other facilities
and the associated expenses. This might include the equipment itself, site preparation
and road construction.
- Operations: The operations cost often come from the additional lease operation
expenses, which include well maintenance and delivery cost.
May 2017 G. Moricca 29
Offshore vs Onshore Drilling Rigs
▪ Offshore drilling rigs are classified differently, mainly based on their movability and how
deep the sea bed is. There are two types of offshore drilling rigs:
1. Bottom-supported units are rigs that have contact with the seafloor. There are
submersible bottom-supported units and also jack up units that are supported by
structured columns.
2. Floating units do not come in direct contact with the ocean floor and instead float
on the water. Some are partially submerged and anchored to the sea bed while
others are drilling ships which can drill at different water depths.
- Drilling – 60% of costs: Drilling takes up a much larger portion of the costs for offshore
drilling activities.
- Completion - 40% of costs: The completion activities take up the remaining costs, which
include well perforations, rig hiring, transportation and well head equipment.
- Facilities - 7 to 8% of costs: Onshore drilling activities require storage and other facilities
and the associated expenses. This might include the equipment itself, site preparation
and road construction.
- Operations: Like onshore drilling activities, the operation costs fall into the lease
operating expenses for the well.
G G G
1 2 3
FEL-1 FEL-2 FEL-3 Detailed Operations
Conceptual Preliminary Eng. Design Eng. Design Support
Engineering Engineering Fully define Implement Monitor
scope. execution plan. performance.
Clear frame Generate
goal. alternatives.
▪ Develop detailed ▪ Final design ▪ Final design
▪ Identify ▪ Reduce execution plans.
opportunities. uncertainty and ▪ Implement ▪ Benchmark
quantify ▪ Refine estimates execution plan. performance
▪ Preliminary associated risks. and economic against objectives
assessment of analysis to A/R ▪ Collect, analyze, and competitors.
uncertainties, ▪ Develop expected level. and share metrics
potential return, value for selected and lessons ▪ Share results and
and associated alternatives. ▪ Confirm expected learned. lessons learned.
risks. value meets
▪ Identify preferred
business ▪ Continue
alternative(s).
▪ Plan for next objectives. performance
phase. ▪ Plan for next assessment and
phase. identify
opportunities.
Cost accuracy Cost accuracy Cost accuracy
Cost accuracy
±40% ±25% ±15% ±5%
▪ The oil and gas industry has consistently used the combination of both
methodologies of the PMI and IPA in the development of major projects,
with particular attention on the front-end loading methodology (FEL), which
combines an approach of so-called "rolling wave planning", with a vision of
technical and cost integration in the light of the IPA's empirical tools.
▪ FEL 2: Conceptual engineering - This is the stage of development that includes the
evaluation and selection of conceptual alternatives. The main focus of this phase is
the development of conceptual engineering for options listed in FEL 1, in order to
compare the options and define, through the results of the financial-economic
assessment of each option, which alternative will make it through to the next phase.
▪ FEL 3: Basic engineering - In this phase, the focus is the construction and the
preparation of the project for its corporate approval and future implementation. The
basic engineering of the selected option in FEL 2 is performed, allowing the
calculation of project capex with greater precision. The engineering solution
selected in FEL 2 is technically detailed and more value improving practices are
considered in the development of the basic engineering design.
May 2017 G. Moricca 38
Tasks to be accomplished for a reliable Field
Development Plan
1
• Set an Integrated FDP Team and Define a clear Target Feasibility
Front End Loading (FEL-1)
2
• Data Acquisition, Data Storing and Data Validation
▪ Identify opportunities.
▪ Preliminary assessment.
3
• Development of a robust Reservoir Model ▪ Conceptual Engineering
4
• Conceptual FDP Scenario – Qualitative evaluation
Selection
5
• Field Development Strategy Identification Front End Loading (FEL-2)
6
• Consolidation of FDP Scenario - Quantitative ▪ Generate alternatives
6A
• Economic Evaluation ▪ Identify preferred.
alternative.
6B
• Uncertainty Analysis
6D
• Health, Safety and Environmental
6E
• Final Selection Field Development alternative
7
• Field Development Plan Approval
May 2017 G. Moricca 39
Contents of final FDP document
Typical Contents of a Field Development Plan document:
1. Executive Summary
2. Introduction
3. Field History and Background
4. Reservoir Characterization & Geological Modelling
5. Reservoir Simulation & Performance Prediction
6. Techno-Economic Evaluation of Prediction Scenarios
7. Executive Prediction Scenario
8. Drilling & Completion Proposal
9. Project Scope of Work & Execution Schedule
10. Project Cost Estimation
11. Quality Management System
12. Health, Safety, and Environment
13. Governing Standards
May 2017 G. Moricca 40
•Set an
Integrated FDP
Team and
1 Define a clear
Target
G G G
1 2 3
FEL-1 FEL-2 FEL-3 Detailed Operations
Conceptual Preliminary Eng. Design Eng. Design Support
Engineering Engineering Fully define Implement Monitor
scope. execution plan. performance.
Clear frame Generate
goal. alternatives.
▪ Develop detailed ▪ Final design ▪ Final design
▪ Identify ▪ Reduce execution plans.
opportunities. uncertainty and ▪ Implement ▪ Benchmark
quantify ▪ Refine estimates execution plan. performance
▪ Preliminary associated risks. and economic against objectives
assessment of analysis to A/R ▪ Collect, analyze, and competitors.
uncertainties, ▪ Develop expected level. and share metrics
potential return, value for selected and lessons ▪ Share results and
and associated alternatives. ▪ Confirm expected learned. lessons learned.
risks. value meets
▪ Identify preferred business ▪ Continue
▪ Plan for next alternative(s). objectives. performance
phase.
▪ Plan for next assessment and
phase. identify
Cost accuracy Cost accuracy opportunities.
Cost accuracy Cost accuracy
±40% ±25% ±15% ±5%
▪ Only this well can provide the certainty about whether crude oil
or natural gas really does exist in the explored area after the
seismic measurements have been conducted.
▪ When evaluation of the well data and analysis of the drill cores
come to the clear conclusion that oil or gas has been found, this
means a potential development project has been identified. The
next phase, field development, can now begin.
Role:
▪ Be custodian of the objectives of project
▪ Identify priorities
▪ Allocate the assigned human resources
▪ Promote and facilitate the correct integration of permanent and
part-time team components
▪ Avoid lack of communication among the team component and
management
May 2017 G. Moricca 52
FDP Target Identification
▪ Identification of a clear target based on
the data collected during the field
appraisal and in line with company
strategy.
2. Reservoir Connectivity
- Reservoir Characterization and 3D Geologic Modeling
- Geological Inter-well Connectivity Evaluation
- Fluid and Saturation-Dependent Properties
- Initial Reservoir Pressure Estimation
- PVT Matching
- History Matching Reservoir Performance
▪ Corporate database
- Corporate database stores the official data of the company.
- Data quality is high and the rate of change (volatility) is low.
- No new data is created within the Corporate database, and it does
not feed any application, except its own set of utilities for browsing,
selecting and exporting.
- Data are delivered in a format compatible with the Project database.
- Although the database can be accessed by anyone, changes in
content are controlled by an administrator.
- It usually resides in a mainframe and is characterized by the many
controls that are placed around it.
May 2017 G. Moricca 61
Three Levels Database [from L. Cosentino 2001 Technip]
▪ Project database
- It contains data relevant to a particular project or asset.
- It is made up of information withdrawn from the Corporate database
and is accessed using software from different vendors.
- Its size is highly variable, from few to thousands of wells, and it may
contain multiple versions of the same data.
- All the professionals working on the team can access and modify the
database, so that the volatility is high.
- New data is generated through the interpretation stages.
- When the project has been completed, the interpreted data is
returned to the Corporate database and becomes the new reference
information.
▪ Application database
- It contains data relevant to a single application.
Depositional environment, diagenesis, lithology, structure, Exploration, discovery Exploration & development
Geological faults, and fractures & development geologists
Discovery, delineation,
Formation volume factors, compressibilities, viscosities, Reservoir engineers and
Fluid chemical compositions, phase behavior, and specific gravities
development, and
laboratory analysts
production
▪ There are many reasons to perform a simulation study. Perhaps the most
important, from a commercial perspective, is the ability to generate oil
production profiles and hence cash flow predictions.
▪ In this context, there is little doubt that reservoir simulation is the only qualified
technique that allows for the achievement of such objectives. Simpler
techniques like material balance are particularly useful for evaluating the
reservoir mechanisms, but are not suited for reservoir forecasting.
▪ Reservoir simulation, on the other hand, offers the required flexibility to study
the performance of the field under defined production conditions. All
commercial simulators are provided with sophisticated well-management
routines that allow the engineer to specify the operating conditions at the levels
of producing interval, well, well group, reservoir and field.
May 2017 G. Moricca 70
Geological and Dynamic Reservoir Model
▪ The geological model defines the “geological units” and their continuity and
compartmentalization.
2. Reservoir Connectivity
- Reservoir Characterization and 3D Geologic Modeling
- Geological Inter-well Connectivity Evaluation
- Fluid and Saturation-Dependent Properties
- Initial Reservoir Pressure Estimation
- PVT Matching
- History Matching Reservoir Performance
▪ Reservoir Characteristics
1. Areal and Vertical extent of production formation
2. Isopach map of gross and net pay
3. Correlation of layers and others zones
▪ To initialize a reservoir simulation model, the initial oil, gas and water pressure
distribution and initial saturations must be defined in the reservoir model. Pressure data
are usually referenced to some datum depth. It is convenient to specify a pressure and
saturation at the datum depth and then to calculate phase pressures based on fluid
densities and depths
▪ The initialization of the reservoir simulation models is the process where the reservoir
simulation model is reviewed to make sure that all input data and volumetrics are
internally consistent with those in the geo-model. The reservoir simulation model should
normally be in dynamic equilibrium at the start of production, but there might be some
exceptions to that rule. Non-equilibrium at initial conditions may imply some data error
or the need to introduce pressure barriers (thresholds) between equilibrium regions.
▪ The initialisation phase allows for the calculation of the OOIP in the model, which is
then compared with the available volumetric figures.
- Visualize reservoir simulation grid, each grid layer and each cross-section,
to ensure that simulation grid is constructed correctly and all gridblocks
are suitable for reservoir simulations.
- Compare reservoir simulation grid with the geological grid and make sure
that reservoir simulation grid layers and fault geometries are consistent
with the structural depth maps used.
- Visualize and compare reservoir simulation model properties (porosity,
permeability, net-to-gross ration and fluid saturation) with those in the
geological model.
- Compare reservoir simulation model gross-rock-volume, pore volume,
and hydrocarbon in-place volumes with the geological model volumes.
- Verify that the wells are consistently represented in the reservoir
simulation grid.
May 2017 G. Moricca 91
Basic of History Match [1]
▪ Is the reservoir model reliable enough to generate information
useful for business purpose ?
▪ When differences are found, modifications are made to the input data in order
to improve the match.
Porosity
- Well log and cores
Water saturation
- Well logs and/or cores
Recovery efficiency
- Analogy
- Drive mechanism
- Reservoir characteristics
May 2017 G. Moricca 101
OHIP Deterministic scenario
▪ When using the deterministic scenario method, typically there should also be low,
best, and high estimates, where such estimates are based on qualitative assessments
of relative uncertainty using consistent interpretation guidelines. Under the
deterministic incremental (risk-based) approach, quantities at each level of uncertainty
are estimated discretely and separately.
▪ It is customary in the industry to describe this uncertainty in terms of a low and high
range.
May 2017 G. Moricca 102
OHIP Estimation by Volumetric Method
Probabilistic (Stochastic) Approach
▪ The basic idea behind a probabilistic computation is to take into account
the uncertainties related to the various parameters involved in the
computation.
OHIP = A x h x ф x So
Where: (A) is the reservoir area average, (h) is the net hydrocarbon thickness, (φ)
the average porosity and (So) the oil saturation.
▪ Stochastic models (as Monte Carlo Simulation ) provide the average answer
(assuming that all input values represent the average input value) but tell us
nothing of the range or probability of possible answers.
A x h x ф x So = OOIP
5.26 26.24
MMbbl MMbbl
▪ The range of uncertainty of the recoverable and/or potentially recoverable volumes may
be represented by either deterministic scenarios or by a probability distribution. When
the range of uncertainty is represented by a probability distribution, a low, best, and
high estimate shall be provided such that:
- There should be at least a 90% probability (P90) that the quantities actually
recovered will equal or exceed the low estimate.
- There should be at least a 50% probability (P50) that the quantities actually
recovered will equal or exceed the best estimate.
- There should be at least a 10% probability (P10) that the quantities actually
recovered will equal or exceed the high estimate.
▪ For volume estimates, a low (P90) - high (P10) range is thus unambiguously defined by
statistics. The situation is more complex for a production forecast because the forecast
is a timeline and not a scalar. This has led to a variety of uncertainty definitions for the
forecast used in the industry, and has hampered progress in deriving the best methods,
tools and processes for deriving the forecast uncertainty range.
▪ The Material Balance OHIP estimation is performed by the Havlena and Odeh techniques.
▪ A comparison of the results of the various cases will show at a glance the
most interesting (technical) exploitation options
▪ The decline of field flow rate can be against by appropriate depletion strategy involving a proper
pressure support according to the reservoir characteristics.
No pressure
support
3. Water drive
4. Combination drive
▪ Once the plateau is reached, the facilities are filled and any extra
production potential from the wells is choked back.
▪ In the solution gas drive reservoirs, the producing GOR starts at the
initial solution GOR (Rsi), decreases until the critical gas saturation
is reached, and then increases rapidly as the liberated gas is
produced into the wells.
▪ The producing GOR may decline in later years as the remaining
volume of gas in the reservoir diminishes.
optimized solution.
May 2017 G. Moricca 144
Solution Gas Drive
Reservoirs Performance
▪ Multiple reservoir
simulation runs, combined
with an adequate
economic analysis, are
require to define the
problem and identify a
proper optimized solution.
▪ The table
summarizes the
distinguishing
characteristics of
each.
PetroWiki
▪ Distribution of water, oil, and gas and position of gas/oil contact (GOC) in a
segregating-gas-cap reservoir: (a) before production and (b) during depletion.
▪ Segregating gas caps are gas caps that grow and form an enlarged gas cap zone.
▪ The segregation-drive mechanisms can be augmented by crestal gas injection.
May 2017 G. Moricca 153
Non-Segregating Gas Caps Reservoir
▪ The prediction of
the size and
permeability of the
aquifer is usually
difficult, since there
is typically little data
collected in the
water column.
▪ Oil saturation refers to the fraction of the rock’s pore volume filled with oil, and
is dependent on the shape and dimensions of the pores, the properties of the oil,
and the interaction between the rock and the fluids governed by interfacial
tensions and wettability (the tendency of a fluid to stick to the rock’s surface.
▪ The relative permeability to a fluid is defined as the ratio between the effective
permeability to that fluid and the absolute permeability of the rock. Absolute
permeability is an intrinsic property of reservoir rock, and defines the ease with
which a fluid can flow through the interconnected pore spaces when the rock is
saturated in a single fluid, whereas effective permeability defines a fluid’s ability
to do the same in the presence of other fluids (water, gas, oil).
▪ On the other hand, every fluid has a saturation point, referred to as critical
saturation; below this point, the fluid is no longer mobile, though still present
within the porous medium; at that point the relative permeability becomes
zero.
May 2017 G. Moricca 176
Relative Permeability Curve
▪ During the viscous displacement flood the water saturation increases from its
irreducible value ( Swc ), at which it is immobile, to the maximum or flood-out
saturation ( Sw = 1 – Sorw ) at which the oil ceases to flow.
▪ Since steady state is not reached, Darcy’s Law is not applicable. The Buckley-
Leverett equation for linear fluid displacement is the basis for all calculations of
relative permeability.
May 2017 G. Moricca 178
Relative Permeability Laboratory
Measurements [2]
▪ There are essentially five means by which relative permeability data can be
obtained:
- Direct measurement in the laboratory by a steady state fluid flow process
- Direct measurement in the laboratory by an unsteady state fluid flow
process
- Calculation of relative permeability data from capillary pressure data
- Calculation from field performance data
- Theoretical/empirical correlations
▪ The viscous forces have the greatest impact on the fraction of water flowing through the
formation, and are dependent on the mobility of both water and oil (the mobility of a fluid
is defined as the ratio between the effective permeability to that fluid and its viscosity).
Where:
A indicates the section of outflow and L the length of the porous medium; ko
represents the effective permeability to the oil; kro and krw are the relative
permeability to the oil and water respectively; µo and µw are the viscosities of the
oil and water; ϱo and ϱw are the densities of the oil and water; pc represents the
capillary pressure; α is the angle of entry (or of injection) of the water into the
reservoir relative to a horizontal plane; g is the gravity acceleration.
May 2017 G. Moricca 186
Buckley-Leverett Water Fraction
▪ The local fraction of water (fw), which by definition must range between zero and
one, in practice variable between Swc (saturation in connate water) and 1-Sor
(maximum saturation in water, corresponding to the residual saturation in oil), is
dependent on relative permeability and capillary pressure.
In field units:
If we let x=0 at the first point of the transition zone, then the distances the various constant
water saturation planes will travel in, 60, 120, and 240 days are given by:
𝑑𝑓𝑤
▪ At 50% water saturation, the value of the derivative is 2.87. So, the position
𝑑𝑆𝑤
of 50 % water saturation front at different time ( 60, 120, and 240 days ) is:
Tangent to the Fractional Flow Curve from Sw = Swc Water Fractional Flow and its Derivative
[feet]
Here, the subscriptions “-” and “+” refer to values behind and ahead
the saturation shock, respectively.
M ≤ 1 means that the injected water cannot travel faster than the
oil and therefor displaces the oil in perfect piston-like manner.
M ≤ 1 Stable displacement (piston-like displacement)
M > 1 Unstable displacement (water fingering, poor oil recovery)
May 2017 G. Moricca 200
Mobility ratio M
Using typical parameters for North Sea fields:
Krw = end point water relative permeability (dimensionless) = 0.3
Kro = end point oil relative permeability (dimensionless) = 1
µw = water viscosity (cp) = 0.4
µo = oil viscosity (cp) = 0.8
𝑲𝒓𝒘 𝑲𝒓𝒐
𝑴= / = 0.6
𝝁𝒘 𝝁𝒐
M≤1
Water Oil
Good ‘piston
like’ flooding
- Varying continuity, interconnection, and areal extent of porous and permeable layers
throughout the reservoir that can induces poor waterflooding efficiency.
- Fractures or high permeability channels, that induce a channeling flow and a consequent
premature water breakthrough.
- Fault trends that affect the connection of one part of an oil reservoir to adjacent areas,
either because they are flow barriers or because they are open conduits that allow
unlimited flow along the fault plane, and consequently very poor waterflooding
efficiency.
May 2017 G. Moricca 207
Impact of Permeability Heterogeneity
on Oil Displacement Efficiency [1]
▪ The effect of different permeability distributions across a continuous reservoir
section can be illustrated considering three cases as follow.
Gravity segregation
▪ These early methods were developed when the ability to make detailed,
complicated engineering calculations was limited. They focused on how to
account for:
- The effect of the vertical permeability variation with minimal
consideration of the mobility ratio.
𝐶 𝐾𝑟𝑤 𝜇𝑜
Fwo = 𝐵𝑜
1−𝐶 𝜇𝑤 𝐾𝑟𝑜
Where:
Bo = the oil formation-volume factor, RB/STB.
∆𝑝 ℎ
𝑢𝑡 𝜇𝑜 𝐿
=
∆𝑝 𝑉
𝐾𝑥 𝑔 ∆𝜌 ℎ
Where:
(Δp)h = pressure difference in the horizontal direction, psi;
(Δp)V = pressure difference in the vertical direction, psi;
ut = horizontal Darcy velocity, ft/D;
Kx = permeability in the x direction, darcies;
Δρ = water/oil density difference, lbm/ft3;
L = length, ft;
h = reservoir thickness, ft;
g = gravity constant.
May 2017 G. Moricca 221
Craig’s correlation of scaled-model experiments to determine the effect of
gravity segregation on volumetric sweep efficiency in uniform linear systems.
May 2017 G. Moricca 222
Homogeneous reservoirs with dipping beds
subject to gravity effects – Craig’s model [PetroWiki]
▪ If the rate of water injection in a waterflood is too low for vertical
equilibrium to occur, there will be gravity-stabilized flow between
the water and the oil.
▪ One of the systems that have been analyzed with simple calculations is that of
water/oil displacement with vertical permeability variations and gravity effects,
but with capillary pressure neglected.
▪ Dake’s example shows that in waterflooding where gravity effects are significant,
having the high-permeability layers at the top of the reservoir interval allows a
much more efficient oil displacement than when the high-permeability layers are
at the bottom of the reservoir interval. This is because gravity causes the water to
slump, and when the lower-permeability layers are the base, the water must move
more slowly than the oil from the injector to the producer.
May 2017 G. Moricca 226
Factors Affecting Waterflood Success
▪ Timing of flood – earlier is better
- Higher primary depletion (lower pressure) increases gas
saturation
- High gas saturation decreases oil recovery
▪ Well spacing
- Tighter well spacing is better
- Increases Areal sweep efficiency [Ea] and Vertical sweep
efficiency [Ev]
- Accelerates waterflood recovery
▪ Pattern selection
- Balanced patterns improve Ea and WOR performance
▪ Higher permeability
- Process the waterflood faster
- May utilize wider well spacing (cheaper)
May 2017 G. Moricca 228
Waterflooding Design
▪ The design include of waterflooding involves both technical and economic
considerations. Economic analyses are based on estimates of waterflooding
performance.
▪ The data and interpretation that are obtained in reservoir study for FDP
purpose make up many of the input data for the waterflooding design.
May 2017 G. Moricca 231
Outcomes of a Waterflooding Design
▪ Waterflooding is an intensive investment activity and require a proper
design. The outcomes of the design should includes:
- Injection/producer pattern layout
- Injection-water chemical and mechanical treatment
- Production wells perforated interval
- Surface facilities for injection water
- Surface facilities for produced fluids
- Pump Station
▪ Easy to be drilled.
▪ Less expensive.
May 2017 G. Moricca 240
J-shape
J-shape wells are made up of a vertical
section, a deep kick off and a build up
to target. They are also called Deep
Kick off wells or J Profile wells (as they
are J - shaped).
▪ The completion planning for the injector is the same of the producer but
considering that the is in of “hydraulic injection flow condition” only.
▪ The completion design mast take into account the evolution of the
production/injection characteristics (BHFP, WC, GOR) of the well along the field
life time, according to the production/injection forecast.
May 2017 G. Moricca 247
Single Completion [1]
▪ Single zone completion is one of the
types of upper completion which allows
producing only one zone. Production
tubing is a flow path for fluid from a
reservoir to flow to the surface so it
protects the casing from corrosion and
maximizes the efficiency of the flow.
▪ Design concepts
In a multilateral completion, a unique system may mechanically connect directional and
horizontal laterals to a parent well bore, allowing production from the individual laterals to
be selectively produced or commingled.
May 2017 G. Moricca 255
Offshore Wells
Completion
▪ Globally, more than 70% of the wells in deepwater developments that are
either in service or committed are wet tree systems.
March 2017 G. Moricca 257
Wet tree systems
▪ Subsea cluster wells gathers the production in the most efficient and
cost-effective way from nearby subsea wells, or from a remote
/distant subsea tie-back to an already existing infrastructure based on
either a FPSO or a FPU
Tubing Hanger
▪ A device attached to the topmost tubing joint in the
wellhead to support the tubing string. The tubing
hanger typically is located in the tubing head, with
both components incorporating a sealing system to
ensure that the tubing conduit and annulus are
hydraulically isolated
May 2017 J. Bellarby – ELSEVIER 2009 273
Conventional (vertical) and
Horizontal trees
▪ The difference between vertical and horizontal tree is in the position of the. In
the vertical tree, the master valves are in vertical position and inline with the
tubing, whilst in horizontal tree, they are horizontal and away from the
production / casing bore.
ΔD=1ft ; ΔP= 0.45 psi ΔD=1ft ; ΔP= 0.35 psi ΔD=1ft ; ΔP= 0.08 psi
water gradient = oil gradient = gas gradient =
(ΔP/ΔD) = 0.45 psi/ft (ΔP/ΔD) = 0.35 psi/ft (ΔP/ΔD) = 0.08 psi/ft
The Pressure Gradient is the ratio among the Pressure variation (ΔP) from
two points at different depth and the vertical distance among them (ΔD)
July 2010 G. Moricca 279
Hydrostatic Pressure-depth relationship
metric units
Ph = 0 Ph = 0 Ph = 0
ΔD=1 m ; ΔP= = 1.000 kg/cm2 ΔD=1 m ; ΔP= = 0.800 kg/cm2 ΔD=1m ; ΔP= = 0.017 kg/cm2
water gradient = oil gradient = gas gradient =
(ΔP/ΔD) = 1.000 kg/cm2 /10m (ΔP/ΔD) = 0.800 kg/cm2 /10m (ΔP/ΔD) = 0.017 kg/cm2 /10m
The Pressure Gradient is the ratio among the Pressure variation (ΔP) from
two points at different depth and the vertical distance among them (ΔD)
July 2010 G. Moricca 280
Hydrostatic Pressure-depth relationship
field vs metric units
Units of Length
1ft = 0.3048m
1m = 3.2808ft
Units of Pressure
1psi = 0.0703kg/cm2
1kg/cm2 = 14.2233psi
Pressure Gradient
1psi x ft = (0.0703) kg/cm2 x ft
= (0.0703 x 3.2808) kg/cm2 x 1 m
= 0.2307kg/cm2 x 1 m
= 2.3067kg/cm2 x 10 m
0.4335psi x ft = (0.45 x 2.3067) kg/cm2 x 10 m
= 0.9999kg/cm2 x 10 m
1kg/cm2 x 10 m = 1/2.3067psi x ft
= 0.4335psi x ft
The reservoir fluid gradient (G), expressed in pound per square inch
per foot (psi), may be obtained by dividing the density (ρ) in pounds per
cubic foot by 144 sq in/sq ft.
Example
● Oil specific gravity = 0.850 (water = 1)
● Water density = 62.366 lb/cu ft
● Oil density = 0.850 x 62.366 = 52.955 lb/cu ft
● Oil gradient = 52.955/144 = 0.368 psi/ft
July 2010 G. Moricca 282
Calculating Pressure Gradient of
Producing fluid
Data
● Producing fluid:
― Oil 25 API
― Water Cut (WC) = 80 %
― Formation water Specific Gravity = 1.04
● Density of pure water = 62.3 lb/cu ft
● Specific Gravity of pure water = 1
Calculate Pressure Gradient of Producing fluid
Solution
● Oil Specific Gravity = 141.5 / (131.5 + 25) = 0.904
● Producing fluid Specific Gravity = (SGwater x WC) + [SGoil x (1–WC)]
= (1.04 x 0.8) + [0.904 x (1–0.8)] = 1.013
● Density of produced fluid = 1.013 x 62.3 = 63.1099 lb/cu ft
● Gradient of produced fluid = 63.1099/144 = 0.438 psi/ft
Vertical Dept ft
528 psi
2500
relationship. 3500
Vertical Dept ft
2000
Reservoir A
2500
Specific Gravity Oil 0.809 (44°API)
Pore pressure gradient 0.35 spi/ft 3000
3500
Reservoir B 4000
Specific Gravity Oil 0.809 (44°API) Pore Pressure Gradient 0.40 psi7ft
Pore pressure Gradient 0.45 psi/ft
Pore pressure gradient 0.45 spi/ft
500 500
1000 1000
1500 1500
Vertical Dept ft
Vertical Dept ft
2000 2000
2500 2500
3000 3000
3500 3500
4000 4000
4500 4500
5000 5000
H = P/G 10000
Fluid
9000 Gradient
―Measured pressure = 2500 psi
flow naturally !
✓ Uplift/burial of rock
P = D x Gw
D = 5000 ft
Gw = 0.45 spi/ft
P = 5000 x 0.45 =
2250 psi
❑ Brent Blend, comprising 15 oils from fields in the Brent and Ninian
systems in the East Shetland Basin of the North Sea.
❑ Dubai-Oman, used as benchmark for Middle East sour crude oil flowing
to the Asia-Pacific region
❑ Tapis (from Malaysia, used as a reference for light Far East oil)
❑ Minas (from Indonesia, used as a reference for heavy Far East oil)
Reservoir Reservoir
pressure above pressure below
bubble point bubble point
Bo – The oil formation volume factor, witch is the volume in bbl occupied in
the reservoir, at the prevailing pressure and temperature, by one STB of oil
plus its dissolved gas.
Unit: rb (oil + dissolved gas)/stb oil
Bg – The gas formation volume factor, witch is the volume in bbl that
one standard cubic foot of gas will occupy as free gas in the reservoir at
the prevailing pressure and temperature. Unit: rb (free gas)/scf gas
July 2010 G. Moricca 300
PVT Parameters: Bo as function of pressure
Undersatured oil:
Above the bubble
Satured oil: two phases (oil and gas) one phase pressure Bo
increases slightly
as the pressure is
reduced from initial to
the bubble point
pressure. This effect
is due to liquid
expansion and, since
the compressibility of
the undersatured oil
in the reservoir is low,
the expansion is
relatively small.
Below the bubble pressure, as the pressure declines, since each
reservoir volume of oil contains a smaller amount of dissolved gas,
one stb of oil will be obtained from progressively smaller volumes of
reservoir oil and Bo steadily declines with the pressure.
Bg increases as the pressure declines, simple because (as per its definition) the volume,
that one standard cubic foot of gas will occupy as free gas in the reservoir, increases as the
reservoir pressure decreases.
The total underground withdrawal of hydrocarbons (oil and gas) associated with the
production of one stb of oil is: (Underground withdrawal)/stb = Bo + (R – Rs)Bg
The above relationship shows why the gas formation volume factor has the rather
unfortunate units of rb/scf.
July 2010 G. Moricca 302
PVT Parameters: R and Rs as function of
pressure
Bob Oil Volume Factor at Bubble-point pressure (Standing) bbl/STB Bob = 0,9759 + 12*10-5 Y 1,2 ; R > Rs satured oil
co Undersatured Oil Compresibility (Vazquez) 1/psi co = 10-5 [- 1433 +5 Rs + 17,2T - 1180γg + 12,61γAPI ] / P
Eg Fraction of the total area occupied by gas dimensionless Eg = (1 -EL)
EL Fraction of the total area occupied by liquid (Liquid holdup) dimensionless EL = 5,645 Bo / [(R - Rs)Bg + 5,615(Bo + Bw Fwo)]
Pb Bubble-point Presure (Standing) psi Pb = 18,2 (W - 1,4)
Calculated parameters
Qo Q o = Q Lsp / [Bosp + Fwo ] 217 STB/D
R Total (Producing) Gas/Oil Ratio (GOR) scf/STB
R R = Q gsp / Q o + R s sp 472 scf/STB
GOR1 GOR 1 = Q gsp / Q o 442 scf/STB
GOR2 GOR 2 = R s sp 30 scf/STB
Rs GOR t = GOR 1 + GOR 2 472 scf/STB
γg γg = [GOR 1 γg1 + GOR 2 γg2] / [GOR 1 + GOR 2] 0,703 (air = 1)
kg/l 0,966 0,959 0,953 0,946 0,940 0,934 0,928 0,922 0,916 0,910 0,904 0,898 0,893 0,887 0,882 0,876
API 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 50
kg/l 0,871 0,865 0,860 0,855 0,850 0,845 0,840 0,835 0,830 0,825 0,820 0,816 0,811 0,806 0,802 0,780
API 11,4 12,2 12,9 13,6 14,4 15,1 15,9 16,7 17,4 18,2 19,0 19,8 20,7 21,5 22,3 23,1
kg/l 0,910 0,905 0,900 0,895 0,890 0,885 0,880 0,875 0,870 0,865 0,860 0,855 0,850 0,845 0,840 0,800
API 24,0 24,9 25,7 26,6 27,5 28,4 29,3 30,2 31,1 32,1 33,0 34,0 35,0 36,0 37,0 45,4
Main source: Well Performance . M. Golan /C. H. Whitson. Prentice Hall Inc
July 2010 G. Moricca 307
Reservoir deliverability
Symbols
p = average reservoir pressure, psia
pwf = flowing bottom-hole pressure, psia
q = oil production rate, stb/day
µo = viscosity of oil, cp
k = effective horizontal permeability to oil, mD
h = reservoir thickness, ft
r = reservoir boundary radius, ft
rw = wellbore radius to the sand face, ft
S = skin factor
psi
3,0
3500
1,8
3500
1,3
3500
0,8
3500
0,4
3500
0,2
3500
can be
Pwf Flowing bottomhole pressure psi 3250 3250 3250 3250 3250 3250 drastically
∆P
K
Pressure Drawdown
Average Formation Permeability
psi
mD
250
20
250
20
250
20
250
20
250
20
250
20
reduced by
h Total net pay thickness ft 100 100 100 100 100 100 the presence
Kh
μo
Transmissibility
Oil Viscosity
mDft
cp
2.000
0,45
2.000
0,45
2.000
0,45
2.000
0,45
2.000
0,45
2.000
0,45
of positive
Bo Oil Volume Factor bbl/STB 1,4 1,4 1,4 1,4 1,4 1,4 skin.
re Drainage radius ft 1000 1000 1000 1000 1000 1000
Qo = J(PR – Pwf)
where:
PR is the average pressure in the volume of the
reservoir being drained by the well, and
Pwf is the bottom-hole flowing pressure.
July 2010 G. Moricca 313
Productivity Index
● By convention, the dependent variable rate defines the x axis and the independent variable,
wellbore flowing pressure, defines the y axis.
● When wellbore flowing pressure equals average reservoir pressure (sometimes referred to as
static pressure), rate is zero and no flow enters the wellbore due to the absence of any pressure
drawdown.
● Maximum rate of flow , Qmax, or absolute open flow, AOF, corresponds to wellbore flowing
pressure equal to zero.
● The slope of straight line equals the reciprocal of the productivity index (slope = 1/J).
July 2010 G. Moricca 314
Example: Straight line IPR
Calculation
Problem
The well Lamar 1 was tested for eight hours at a rate of about 1800 STB/D.
Wellbore flowing pressure was calculated to be 850 psia, based on acoustic
liquid level measurement.
After shutting the well in for 24 hours, the bottom-hole pressure reached a
static value of 1125 psia, also based on acoustic level reading.
The ESP pump used on this well is considered undersized, and a
larger pump can be expected to reduce wellbore flowing pressure to a level
near 350 psia (just above the bubble-point pressure).
Data:
Qo = 1800 STB/D
Pwf = 850 psia
PR = 1125 psia
Solution
1. Productivity Index
J = Qo / (PR – Pwf) = 1800/(1125 – 850) = 6.55 STB/D/psi
After plotting dimensionless IPR curves for all cases considered, Vogel
proposed an empirical relationship for Saturated, dissolved-gas-drive
reservoirs.
Qo Pwf Pwf
2
= 1 − 0.2 − 0.8
P
Qo max
PR R
where qomax is the maximum oil rate (AOF) when wellbore flowing
pressure pwf equal zero.
Q
Pw = 0.125 PR 81 − 80
Q
− 1
max
July 2010 G. Moricca 318
Use of Vogel’s IPR equation
Qo
Q0 max = test data
Pwf Pwf
2
1 − 0.2 − 0.8
PR PR
Qo
Q0 max = Pwf Pwf
2
Pwf Pwf
2
Q0 = Qo max 1 − 0.2 − 0.8
1 − 0.2 − 0.8 PR PR
PR PR
Solution
1. Qomax = 200/[1 – 0.2(3220/4000) – 0.8(3220/4000)2] = 624 STB/D
2. If Pwf = 3000 psi
Qo = 624[1-0.2(3000/4000) – 0.8(3000/4000)2] = 250 STB/D
Vogel's IPR
● PI is a useful tool for comparing wells since it combines all the relevant rock, fluid and
geometry properties into a single value to describe (relative) inflow performance.
● AOF : Absolute Open hole Factor is the flow rate at zero (bottom hole) wellbore flowing
pressure.
● AOF is useful parameter when comparing wells within a field since it combines PI and
reservoir pressure in one number representative of well inflow potential.
cont/...
● Straight line IPR are not applicable to when two phase inflow is taking place
(saturated oil is being produced )
● When multi rates test data is available, the normalized equation q/qomax = [1-
(Pwf/Pr) ² ]n , is preferred since it includes high rate effect.
● The compressible natural of gas results in the IPR no longer being a straight line.
However, the extension of this steady state relationship derived from Darcy’s Law,
using an average value for the properties of the gas between the reservoir and
wellbore leads to q = C ( Pr ² - Pwf ² ) valid at low flow rate.
● At high rate, non-Darcy ( or turbulent ) flow effects begin to be observed. This can
be account for by use of the “ Bureau of Mine” equation that was developed from
field observations: q = C ( Pr ² - Pwf ² )n; where 0.5<n<1.0.
−A log-log plot of q versus ( Pr ² - Pwf ² ) yields a straight line of slope n and
intercept C
− Standard practice for testing gas wells is to measure the bottom hole flowing
wellbore pressure ( Pwf ) at four production rate
The two factors are closely linked, because the final condition of the
inflow performance is the starting point of the Outflow or Tubing
Performance.
The Outflow or Tubing Performance depend on:
● properties of fluids being produced
● geometries of the production string
The performance analysis of the entire System, Reservoir and
Production system (well and surface production system) is performed
through the Nodal Analysis.
No flow
No Operating Point Natural Flow
Pressure P
Outflow
Outflow
Pressure P
Operating
Point
Inflow
Inflow
TPR
TPR
Single-phase Multiphase
−Friction losses are rate-dependent. −Friction and hydrostatic pressure losses vary
−At low rates the flow is laminar and the pressure with rate in much more complicated manner.
gradient changes linearly with rate. Gas well − Increasing rate may change the governing
−At high rates the flow is turbulent and the −Friction losses are rate- pressure loss mechanism from predominantly
pressure gradient increases more than linearly dependent. gravitational to predominantly friction.
with increasing rate. −The Hydrostatic component − The result of this shift is a change of trend in
increases (slightly) as the rate the TPR curve.
increase as consequence of
higher pressure.
Pgravity = D x Gavg
For pipe flow, a Reynolds number above about 4000 will most likely
correspond to turbulent flow
Examples of turbulence
Smoke rising from a cigarette:
for the first few centimeters,
the flow remains laminar,
and then becomes unstable
and turbulent as the rising hot
air accelerates upwards.
Pressure drops
through pipes can
be predicted using
the Moody
diagram which
plots the friction
factor f against
Reynolds
number Re and
relative
roughness ε / D.
July 2010 G. Moricca 338
Well Deliverability
Outflow or Tubing Performance
Reynolds number: Laminar flow vs Turbulent Flow
The flow patterns in the tubing that will result from this gas bubble
formation is a function of:
● Gas and Liquid flow rate
● Pipe angle of inclination
● Pipe diameter
● Phase density
Limitations:
The Hazen-Williams formula should be used for turbulent flow
(Reynolds's number > 105) with mono-phase fluids (NO free gas)
● To find the total friction HEAD (in distance), multiply the friction
factor (f ) by the total measured length of the tubing:
Hfr = f x Ltbg
Outflow Example
Data
― THP = 200 psi
― Vertical Depth = 3450 ft
― Measured Depth = 3700 ft
― Avg. Fluid SG = 0.95
― Tubing Size = 2-7/8-in. 6.5 PPF
― Flow = 2100 bpd
Remember that 62.3 is the water density in lb/cu ft; 1 in2 = 144 ft2 and
therefore:
lb 1 ft 2 lb psi
62.3 3 2 = 0.433 2 2 = 0.433
ft 144 in ft in ft
cont/....
July 2010 G. Moricca 349
Workshop
Outflow or Tubing Performance
3. ID vs OD tubing
The tubing ID of 2.875 in OD - 6.5 PPF is: 2.441 in
Once again: For this specific setting, the pressure require to move the fluid from
the entry point (tubing intake) to the surface is: 1677 psi.
This pressure energy is provided, entirely or partially , by reservoir pressure
regime or by our intervention through an artificial lift system.
July 2010 G. Moricca 350
Workshop
Outflow or Tubing Performance
Outflow -Tubing Intake Curve
If we consider our previous example, but instead of one flow rate
we look at a set of flow rates…
− we can make a table with the components that determine Pout
− PTHP will not change with Flow Rate
− Pgrvt will not change with flow rate
− f, F, and Pfr will change with flow rate.
Outflo (TPR)
Tubing Intake Pressure (psi)
2000
1500 Friction
1000 Hydrostatic
500
THP
0
0 1000 2000 3000 4000 5000 6000
Flow rate (bpd)
In multiphase mixtures
there is general trend of
increasing pressure
gradient with depth.
Unfortunately, we do not
have analytical equations or
simple procedures for
calculating the pressure
traverse of multiphase
mixtures
July 2010 G. Moricca 357
Well Deliverability
Summary
The outflow pressure drop is the pressure energy
required to lift a fluid from the perforations to the
wellhead and then to the separator.
The performance curve (pressure-rate relation) of upstream equipment is called inflow performance
curve; the performance curve of downstream equipment is called out flow performance curve.
The intersection of the two performance curves define the operating point, that is, operating flow rate
and pressure, at the specified node.
For the convenience of using pressure data measured normally at either the bottom-hole or the wellhead,
Nodal analysis is usually conducted using the bottom-hole or the wellhead as the solution node.
July 2010 G. Moricca 361
Nodal Analysis: Schematic of
Production System
Main source: Well Performance. M. Golan /C. H. Whitson. Prentice Hall Inc
July 2010 G. Moricca 370
Fundamental of Artificial Lift
― Gas Lift
― Electrical Submersible Pump (ESP)
― Hydraulic Submersible Pump (HSP)
― Jet Pump
― Progressive Cavity Pump (PCP)
― Beam or Sucker Rod Pump
Downhole pumps boost the transfer of liquid from the bottom-hole to the
wellhead eliminating backpressure caused by the fluid flowing in the
tubing.
Injection of gas into the production string aerates the flowing fluid reducing
the pressure gradient and lowering backpressure at the formation.
For both lift methods, the production rate is increased by reducing wellbore
flowing pressure.
● The IPR curve relates the wellbore flowing pressure Pwf to flow
rate at the surface.
● In gas lift backpressure exerted by the flowing fluid column limits the
reduction of wellbore flowing pressure and thus limits production to a rate
significantly less than the AOF.
In pumping well, it is mandatory to settle the pump below the free gas-
liquid contact. The free gas is intentionally segregated from the liquid before
fluid enters the pump, being vented to the surface through the tubing/casing
annulus. Eliminating free gas in pumps is a fundamental requirement for
efficient pumping.
July 2010 G. Moricca 376
Quick-look of
Artificial Lift
Systems
Main sources:
‒ Well Completion Design. Jonathan Bellarby. Elsevier Inc
‒ Schlumberger Oilfield Review
‒ Electrical Submersible Pumps Manual. Gabor Takacs. Elsevier Inc
✓ Gas Lift
✓ Electrical Submersible Pump (ESP)
✓ Hydraulic Submersible Pump (HSP)
✓ Jet Pump
✓ Progressive Cavity Pump (PCP)
✓ Beam or Sucker Rod Pump
● High water cut is not a restriction ● Tubing has to be pulled to replace the
pump
● Can lift extremely high volume
● High cost for repairs, especially offshore
● Flexibility: can handle rates from
50 to 60.000 bpd ● High voltage (1000 V) electrical power
is required
● Controllable production rate
● Susceptible to damage during completion
● Comprehensive down-hole measurement
● No suitable for low volume wells: <150
● Real time pump and well performance BPD
monitoring
● Power cable requires penetration of head
● Can pump against high flow-tubing and packer integrity
head pressure
● Viscous crude reduce pump efficiency
● Quick restart after shut down
● High temperature can degrade the
● Long run pump life possible electrical motor
Advantages Disadvantages
● No down-hole moving parts ● Less efficient than other pump systems
● Easily installed and retrieved by ● Power fluid and reservoir fluids mast mix,
wireline so a key issues is the selection of an
appropriate power fluid.
● No electrical connections or down-hole This disadvantage can be turned into an
electronics advantage in heavy oil application
The original field development plan should address all known constraints and
consider future changes (depletion, GOR, water cut) to the lift method.
As a result of the above considerations, the type of artificial lift system should
be selected:
1. Positive displacement pumps (PCP, Sucker Rod, Reciprocating Hydraulic
pump)
2. Dynamic displacement pumps (ESP, HSP, Jet pump)
3. Gas lift
Cont/...
July 2010 G. Moricca 396
Artificial Lift System Selection
Based on reservoir production performance analysis, two different approaches
should be investigated:
Long term
Short term
Long term
This frequently leads to the installation of oversized equipment in the
anticipation of ultimately producing large quantities of water. As a result, the
equipment may have operated at poor efficiency due to under-loading over a
significant portion of its total life.
Short term
Essentially, to design for what the well is producing today and not worry
about tomorrow. This can lead to many changes in the type of lift
equipment installed during the well’s production life. Low cost operations may
result in the short term, but large sum of money will have to be spent later
on to change the artificial lift equipment and /or the completion.
protector
● Power is supplied to the motor via
specially protected round or, in the
case of limited space, flat cable
that is run along the outside of the
production tubing.
motor
ESP
Electric
Motor
● Horsepower range
between 7.5 and 450 HP
Designed to provide
cooling to the motor
when fluid velocities
Pump
are below minimum. Shroud hanger
Shroud jacket
Always used when
Seal
perforations are
above the intake.
Motor
July 2010 G. Moricca 407
ESP’s
Motor
Protector
The protector
is the piece
of equipment
that is
typically
placed above
the motor.
Bolt-on Intake
July 2010 G. Moricca 414
ESP’s Rotary Gas Separator
ESP
Pump
The specific speed is defined as: The rotational speed (RPM) required to
produce a liquid rate of 1 gallon per minute against 1 ft of head.
a graph (Pump
Performance Curve)
displaying curves of:
Horsepower
−pumping Head Motor Load
(BHP)
−motor Load (BHP)
−pump Efficiency
versus the pump
rate.
These test curves are obtained by running a pump in water at constant speed
and varying its throughput by throttling the discharge side of the pump
Horsepower
Motor Load
The two power units are (BHP)
From the
Pump Performance Curves
the following information
can be drawn.....
If the motor
of DN13000
ESP is fed at
60Hz, it run at
constant rate
of 3500 RPM,
regarding-less
the pump fluid
rate and the
corresponding
head.
At optimum flow
regime (max
pump efficiency)
the pump
provides the
maximum
pumping power
and......
...consequently the
maximum pump
efficiency is
achieved: more than
60%.
❑ Transformer
❑ Junction box
Casing
Primary cable
Drain valve
Check valve
Joint Tubing
Motor flat cable
Pump
Pump intake
Protector
Pothead
Motor Perforations.
● Allows for any gas to vent that may have migrated through to
the power cable. This prevents accumulation of gas in the
switchboard that can result in an explosive and unsafe operating
condition. A junction box is required on all ESP installations.
ESP systems are the fastest growing form of artificial lift pumping
technology. They are often considered high volume and depth
champions among oil field lift systems.
- Fluid properties
- Hydrocarbon in place
May 2017 G. Moricca 453
Conceptual definition of the Field
Development Scenario [2]
▪ The main scope of the task is to:
- Take decision ‘to do’ or ‘not to do’, and
- Select the Field Development Scenario
Cost accuracy
±40%
G G G
1 2 3
FEL-1 FEL-2 FEL-3 Detailed Operations
Conceptual Preliminary Eng. Design Eng. Design Support
Engineering Engineering Fully define Implement Monitor
scope. execution plan. performance.
Clear frame Generate
goal. alternatives.
▪ Develop detailed ▪ Final design ▪ Final design
▪ Identify ▪ Reduce execution plans.
opportunities. uncertainty and ▪ Implement ▪ Benchmark
quantify ▪ Refine estimates execution plan. performance
▪ Preliminary associated risks. and economic against objectives
assessment of analysis to A/R ▪ Collect, analyze, and competitors.
uncertainties, ▪ Develop expected level. and share metrics
potential return, value for selected and lessons ▪ Share results and
and associated alternatives. ▪ Confirm expected learned. lessons learned.
risks. value meets
▪ Identify preferred business ▪ Continue
▪ Plan for next alternative(s). objectives. performance
phase.
▪ Plan for next assessment and
phase. identify
Cost accuracy Cost accuracy opportunities.
Cost accuracy Cost accuracy
±40% ±25% ±15% ±5%
Vertical / Deviated
Cost-effective
Well Architecture Horizontal way for fluids
Strategy
Multilateral withdrawal
Subsurface
Characterization
Project
Objective
Surface Drilling
Facilities Completion
▪ Fluid Properties
- Subsea and topside design.
- Operation and maintenance( hydrate, wax and deposits,
corrosion).
▪ Reservoir data
▪ Crude oil properties
▪ Drilling and Completion technologies to be adopted
▪ Risk of pollution
▪ Geographic location
▪ Water depth
▪ Distance from Shore Base and/or Terminal
▪ Environmental conditions
▪ Soil criteria
▪ Functional and operational requirements
▪ Governing Codes of Practice
▪ Special or unusual Design Codes
March 2017 G. Moricca 467
Identification of a FDP Clear Strategy
Identify the most effective strategy to reach the predefined Company Target
finding a proper answer to the questions like the following:
▪ Reservoir hydrocarbon withdrawal strategy:
- natural depletion ?
- water injection?
- gas injection ?
- water and/or gas injection ?
▪ Optimum wells location and spacing ?
▪ Optimum plateau rate ?
▪ Stand-alone development or subsea tie-in to existing platform(s) ?
▪ Platform or subsea-to-land solution ?
▪ Platform concepts (e.g. floating or fixed, with and without drilling facilities) ?
▪ Integration with existing platform(s) or infrastructure ?
▪ Transport solution for oil: pipeline transport or offshore loading ?
▪ Transport solution for gas (compression demand, processing requirements) ?
▪ Design for easy decommissioning and removal ?
Emphasis on
▪ Reduction of uncertainties
▪ Reduction of influence of uncertainties
1. Depletion Strategy
- Natural Depletion
- Natural Depletion followed by Water/Gas Injection for Pressure Maintenance
- Natural Depletion followed by Waterflooding for Secondary Recovery
3. Lifting Strategy
- Natural flow at minimum wellhead flowing pressure
- Artificial lifting flow
- Artificial lifting flow providing some extra surface blustering pressure
5. Perforation Strategy
- Single Flow Unit
- Commingled Flow Units
- Partial Penetration
6. Completion Strategy
- Single Completion onshore - Dry Completion offshore
- Dual Completion onshore – Subsea Completion offshore
Primary Recovery
Step 3 – Run reservoir model (sensitivity) to assess the minimum well number
required to produce the reservoir economically, as well as the optimal well
location and well type (e.g. vertical, slant, horizontal, multilateral, etc.).
Step 6 – Make the economic analysis for each well–spacing configuration and
identify the most cost-effective Ultimate Recover development scheme.
Step 9 – Re-run the economic analysis to maintain under control the profitability
of the project.
G. Moricca 478
May 2017
Consolidation of the Field Development Scenario
Workflow - Case without production history [6]
Step 10 – Production build-up period and the duration of production plateau
optimization by adoption of appropriate drilling-time schedule.
- Profile [A] illustrates a gradual increase of production as the
producing wells are drilled and brought on stream; the duration of
the production build-up period is strictly related to the drilling
- Profile [B], in which schedule.
some wells have been
pre-drilled starts - Profile [C] is characterized by a plateau production rate longer
production at plateau than for case A and B. The vantage of profile C is that it requires
rate. The vantage of
pre-drilling is to smaller facilities and probably less wells to produce the same
advantage the UR. One additional advantage of profile Cis that the lower
production of oil, which production rate, and therefore slower displacement in the
improves the reservoir, may improve the UR.
production cashflow,
but the disadvantage
are that the cost of
drilling has been
advantaged, and that
the opportunity has
been lost to gather
early production
information from the
first few wells, which
may influence the
location of subsequent
wells. Economic criteria
are used to decide
whether to pre-drill.
Step 11 – Make the economic and risk analysis for each production profile
2. Formulating scenarios for project development. Engineers and geologists are the primary
contributors with management guidance.
3. Collecting operation and
economic data (see the
dedicated Tab).
Year Year (MSTB) ($/BBL) ($MM) (MMSCF) ($/MSCF) ($MM) ($MM) ($MM)
2018 1 0 50.0 0.0 0 1.5 0.0 0.0 5.7
2019 2 0 50.0 0.0 0 1.5 0.0 0.0 64.7
2020 3 5,405 50.0 270.3 3,276 1.5 4.9 275.2 244.0
2021 4 8,079 50.0 404.0 5,934 1.5 8.9 412.9 74.2
2022 5 9,024 50.0 451.2 7,208 1.5 10.8 462.0 0.0
2023 6 9,068 50.0 453.4 5,848 1.5 8.8 462.2 0.0
2024 7 7,021 50.0 351.0 2,968 1.5 4.5 355.5 0.0
2025 8 4,004 50.0 200.2 2,031 1.5 3.0 203.3 0.0
2026 9 2,511 50.0 125.6 2,179 1.5 3.3 128.8 0.0
2027 10 1,803 50.0 90.2 3,469 1.5 5.2 95.4 0.0
2028 11 1,306 50.0 65.3 4,763 1.5 7.1 72.5 0.0
2029 12 972 50.0 48.6 3,364 1.5 5.0 53.6 0.0
2030 13 685 50.0 34.3 2,200 1.5 3.3 37.6 0.0
2031 14 620 50.0 31.0 1,087 1.5 1.6 32.6 6.4
2032 15 500 50.0 25.0 1,087 1.5 1.6 26.6 6.4
Total 51,000 2,550.0 45,415.3 68.1 2,618.1 401.3
100,0
80,0
60,0
40,0
20,0
0,0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
-20,0
-40,0
-60,0
150,0
125,0
100,0
75,0
50,0
25,0
0,0
-25,0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
-50,0
-75,0
-100,0
-125,0
80
▪ Recovered oil +30% Project NPV @ 12% = 283.9 $million
40
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
-40
Uncertainty
All risks are uncertainties,
however, not all
Risk
uncertainties are risks
Risk Uncertainty
Porosity Probability Density Function ▪ As well as, few points (10) are
Groups of core plug
characterised by high porosity (34%) –
samples having the
same porosity
Low PDF
Probability Density Function - PDF
120
100
110 ▪ The largest number (120) of
90 measurement are characterised by
70
porosity 24% - Highest PDF
▪ Among the 620 measured points, the
40
30 30
majority (500) are characterised by: 18 <
20 20 Porosity > 28%
10 10
B
- Case [B] – represents a
poorly defined discovery,
50
with much broader range of
uncertainty in STIIOP
definition.
- To reduce the uncertainty
of case [B] more appraisal
0 activity should be done
0 100 200 300 400 500
before committing to a
STOIIP (MMstb)
development plan.
Possible consequences
of uncertainty
Risk Opportunity
- Possibility of loss or injury - Possibility of exceeding expectation
- A dangerous element or factor - Upside potential
- The probability of loss - An attractive element or factor
Poor cost
and operational segment
estimation
activities of the field
Manageability
Uncertainty on
LOW
Poor field
reservoir drive
appraisal
mechanism
LOW MED HIGH
May 2017 G. Moricca 517
Risk Analysis Step-by-Step Procedure
1. Perform the risk analysis at several stages and at any time it is
required.
2. Identify the potential risks for the selected stage as well as the
risks which each option could occur.
3. Design a dedicated Risk Matrix for the specific purpose.
4. Perform qualitative risk analysis based on:
- Occurrence probability
- Impact time schedule
Impact Definitions
- Impact on Budget Rating --> Very Low Low Moderate High Very High
Cost Impact of Insignificant < 5% cost 5-10% cost 10-20% cost > 20% cost
Risk cost increase increase increase increase increase
Cost Impact of Insignificant < 1% cost 1-3% cost 3-5% cost > 5% cost
Opportunity cost reduction decrease decrease decrease decrease
Time Schedule Insignificant <1 month 1-3 months 3-6 months > 6 months
Impact of Risk slippage slippage slippage slippage slippage
Time Schedule
Insignificant < 1 month 1-2 months 2-3 months > 3 months
Impact of
improvement improvement improvement improvement improvement
Opportunity
Probability 1–9% 10–19% 20–39% 40–59% 60–99%
Risk Matrix
5 - Very High 5 10 20 35 50
4 - High 4 8 16 28 40
Probability
3 - Moderate 3 6 12 21 30
Rating
2 - Low 2 4 8 14 20
1 - Very Low 1 2 4 7 10
Quantitative Risk Assessment Very Low Low Moderate High Very High
Risk = Impact x Probability 1 2 4 7 10
Impact Rating
R1 Management
R2 Financial
R3 Operational
R4 Technology
Avoid Mitigate
Eliminate cause of risk Reduce probability or impact of risk
(impact or the probability is high)
Risk
Accept Transfer
Contingency plan for (risk is low in Third party (insurance) take on
terms of probability and impact) responsibility (risk impact is high but
To be included in a watch list the probability is low)
Exploit Enhance
Make sure opportunity occurs Only If it is highly probable (the
opportunity is real) and has good
impact
Opport
unity
Accept Share
Allocate resource for further If good impact but low probable to
investigation occur, give third party ownership of
probability
▪ Methods:
- Drill stem test.
- More appraisal wells.
- Extended well test.
- Early production.
- Staged development.
▪ Since its principles are generic, they can be applied to almost any type of
organization and many large oil and gas companies have adopted its framework.
▪ In the Arctic there are periods where the sun does not rise above the horizon. This
is called the “darkness period" or the “polar night" and begins at winter solstice.
▪ The length of the polar night increase towards the north, and for instance at Bear
Island the polar night lasts from 8th of November to February 3rd.
▪ In such temperature conditions, atmospheric and marine icing definitely come into
play. The former is a result of high air humidity, cold rain and accumulation of
dense fog, while the latter is a combination of sea spray and cold temperatures.
Both can cause severe ice growth on surfaces and structures.
May 2017 G. Moricca 546
Arctic Environment and distinctive
features
▪ With regards to sea ice, the Arctic holds different forms of sea ice with varying
characteristics and extent. In this regard, the region can be divided into three
zones; 1) anon-sea ice zone, 2) a seasonal ice zone and 3) a perennial ice zone
where ice is present throughout the year.
G G G
1 2 3
FEL-1 FEL-2 FEL-3 Detailed Operations
Conceptual Preliminary Eng. Design Eng. Design Support
Engineering Engineering Fully define Implement Monitor
scope. execution plan. performance.
Clear frame Generate
goal. alternatives.
▪ Develop detailed ▪ Final design ▪ Final design
▪ Identify ▪ Reduce execution plans.
opportunities. uncertainty and ▪ Implement ▪ Benchmark
quantify ▪ Refine estimates execution plan. performance
▪ Preliminary associated risks. and economic against objectives
assessment of analysis to A/R ▪ Collect, analyze, and competitors.
uncertainties, ▪ Develop expected level. and share metrics
potential return, value for selected and lessons ▪ Share results and
and associated alternatives. ▪ Confirm expected learned. lessons learned.
risks. value meets
▪ Identify preferred business ▪ Continue
▪ Plan for next alternative(s). objectives. performance
phase.
▪ Plan for next assessment and
phase. identify
Cost accuracy Cost accuracy opportunities.
Cost accuracy Cost accuracy
±40% ±25% ±15% ±5%
Strategy
FDP
Knowledge
Organization
Thank you for your attention
Giuseppe Moricca