FIELD DEVELOPMENT PLAN

Stages in the life of a hydrocarbon project and the explanation of the significance of
each one of them.
1. Exploration.
2. Appraiser phase
3. Field development
4. Production
5. Abandonment

Exploration is the first stage for any company considering drilling in an area. It usually
start with geological evaluation to identify underground structure where oil/gas may have
accumulated.
Appraisal: The objective of appraisal well/drilling is to collect more
information/additional data from the field that help the operator make the decision to go
ahead with filed development. It is less risk than the exploration drilling because of the
information collection from the exploration well. It may also involve drilling one or more
well depending on the size of the oil and gas accumulation.
Field development: This is the most important and costly decision in the life cycle pf the
project because all internal and external approvals have to be obtained first. It covers a
wide range of option from single well with early production facilities to a complex multi-
well.
File development is the time where revenue starts coming in, it last for 10 years. The
main objective during this stage is to optimise production and identify any future
investment opportunities within the field.
Abandonment: This is the time when the project is being decommissioned and
abandoned due to uneconomical state of the wells.

The most important stage and why

Exploration is the most important stage because without exploration there won’t be a
field development.
Field development is another important and costly decision in the life cycle pf the project
because all internal and external approvals have to be obtained first. It covers a wide
range of option from single well with early production facilities to a complex multi-well.

Petroleum Engineering:
This is an engineering discipline concerned with the activities (mainly subsurface related) to
the production of hydrocarbon (crude oil and natural gas)
It is the application of all type of engineering to the drilling and production of oil and gas. It is
considered mainly to be associated with the upstream section of the oil and gas industry.

Rock properties
1. Porosity
2. Permeability
3. Fluid saturation
 Fluid properties
1. Density
2. Viscosity
3. Compressibility
4. Formation volume

Factors we consider in ensuring the success of a project are:

1. Quality
2. Cost
3. Schedule
4. Safety
5. Size of the field
6. Environment/location
7. Sales and strategies
8. CRS
9. Accessibility to market
10. Availability of manpower
11. The type of process facilities
12. The size of accumulation
13. Geology of the area
Project control tools
1. Key performance indicator (KPI)
2. Work breakdown structure (WBS)
3. Earned value management (EVM)

The project control tool I am familiar with is the KPI

Elements that make up the petroleum system

1. Source rock
2. Seal/trap
3. Migration
4. Reservoir rock
Petroleum drive mechanisms
1. Gravity drainage
2. Solution gas drive
3. Rock or compaction drive
4. Water drive
5. Gas cap
6. Combination drive
The significance of the mechanism in filed development plan
It helps to determine the type of recovery mechanism to be implored in the development plan.
STOIIP (Stock-tank oil initial in place):
This is the total amount of crude oil present in a hydrocarbon reservoir before the commencement of
any production.
Mathematical expression
STOIIP = 7758 x Ah Ø (1 – sw)
Bo

Ah Ø ( 1−sw )
STOIIP=7758 x
Bo
Reserves
Reserves can be defined as the evaluation of hydrocarbons volumes which are anticipated to
be commercially recoverable from a given date forward from known reservoirs by specified
technique and at specified economic condition.
Key concept
1. Commercially recoverable
2. Known reservoir
3. Specified volume condition
4. Contracts (planning)
5. Specified technique

Methods of estimating reserves/resources

1. Probabilistic: This method is employed when the full range of known
geosciences, engineering and economic data are used to estimate and their
associated probabilities.
2. Deterministic: This method is implied when a single value on known
geosciences, engineering and economic data is used to generate a discrete
estimate.

Types of reserves
1. Prove
2. Probable + probable
3. Possible + probable + possible

OBJECTIVES OF HSE
1. Ensure Safety and Security of all personnel on site
2. To keep record of environmentally sensitive area
3. To ensure safety of equipment and workers
 4. To reduce accident/hazard
5. Identify hazard on site
6. Implement company’s HSE policies
7.

Methods of formation evaluation

1. Coring
2. Mud logging
3. Wireline logs
4. Electrical logs
5. Porosity logs
6. Lithology logs: SP logs and gamma ray log

Facilities necessary for oil/gas production and transportation

1. Flow line/Pipe line
2. Manifold
3. Separator
4. Christmas tree
5. Storage facilities
6. Tanker

Phases of the field production process

1. Initial evaluation
2. Preliminary studies
3. Pr-project studies
4. Project phase
OR
1. Preliminary studies
2. Conceptual studies
3. Pre-project studies
4. Project phase
Stages in the field development project
Evaluation
FEED
YES
Execution phases
Differences in the gas/oil field consideration
Oil field
1. No hydrate formation
2. Uses pump
3. No gas lift mandrel
4. Recovery is 10 – 50 %
 Gas field
1. Hydrate formation
2. Uses compressors
3. Need gas lift mandrel
4. Recovery is 50 - 90 %

Elements considered in economic assessment of development project

1. Capex
2. Opex
3. Drillex
4. Revenue estimation

Economic indicators development projects

1. Net present value (NPV)
2. Internal rate of return (IRR)
3. Pay-out time
4. Breakeven price
5. Profitability index
6. Financial exposure
N
NPV =∑ CF n
n=0 (1+i)

If the NPV = 0, the revenue of the project is sufficient to:

1. Pay all tax expenses
2. Repay the capital invested
3. Create a profit = NPV

Equipment/.parts common to oil drilling rig

1. Power system
2. Hoisting system
3. Circulating system
4. Drill pipe/drill strings
5. Drill bits
6. Blow out preventer (BOP)
7. Mud system
8. Fuel tank
9. Shale shaker
Professions in petroleum engineering
1. Geology
2. Geophysics
3. Accountant
4. Marketing
5. Production
6. Petroleum engineer
7. Economics

Types of hydrocarbon accumulation

1. Associated gas
2. Non association gas
3. Conventional gas
4. Conventional oil
5. Tight gas
6. Tight oil
Types of drilling rigs
There are two major types of rigs which are:
1. Land rig
2. Offshore rigs.

Offshore rigs are sub-divided based in the depth of their operations

1. Jackup rig: For shallow offshore environment of 350 ft
2. Platform rig: For water depth of 1,000 ft
3. Semisubmersible rig: For water depth of 1500 ft
4. Drill ship: For water depth of 3000 ft and deep offshore
5. Tension rigs: are for deep offshore environment