SPE-181903-MS

A New Approach of Gas Lift Wells Production Optimization on Offshore

Fields

A. A. Lubnin, E. V. Yudin, and R. F. Fazlytdinov, JSC Zarubezhneft; R. A. Khabibullin, Gazprom Neft R&D Center;
E. N. Grishchenko and A. V. Bovt, JV Vietsovpetro

Copyright 2016, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE Russian Petroleum Technology Conference and Exhibition held in Moscow, Russia, 24-26 October 2016.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
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Abstract
This article deals with developing production mode of gas lift operation of production wells. A method for
solving the issues associated with immediate assessment of the potential flow rate of a large number of
wells, as well as for the search of candidates for wellwork is presented. A method for solving optimization
problems that arise in operation of gas lift wells on offshore is proposed. Examples of using the proposed
method at offshore oil fields of the Socialist Republic of Vietnam that are operated by JV Vietsovpetro are
shown.

Introduction
The activities of any Oil Company are intended to maximize oil production rates and reduction of operating
costs, associated with well operations. In order to solve this problem day-to-day control of wells operating,
identification of suitable for optimization wells, and ensuring the maximum flow rate of well operation are
required.
The TPMsys system developed by PJSC ROSNEFT Oil Company has proved to be successful in
managing oil recovery at onshore wells [3]. One of the TPMsys components is the production mode of
production wells. The work of this system is based on continuous analysis of oil production capacity of
wells and planning of measures to optimize operating parameters [1]. In particular, the production mode
allows assessing the bottomhole pressure and production rate of all wells based on regular measurements
of fluid flow rates, water cut, gas oil ratio and other parameters. This information is a key to managing the
operating well stock. The following parameters are calculated based on this information:
1. Production potential of the whole operating well stock [11];
2. Incremental of well oil production due to the well operations [13];
3. Factor analysis of changes in oil production[14];
4. Justification of oil production plans [15].
2 SPE-181903-MS

Well operation potential is in most common cases assessed with consideration of the lowest possible
bottomhole pressure of the applicable production system. For instance, for electrical submersible pumps
(ESPs), such pressure depends on the share of free gas that enters the pump suction [16].
As opposed to TPMsys, analysis and optimization of well operation at oil fields of the Socialist Republic
of Vietnam require using a method that allows taking into account the special aspects of offshore oil field
development:
1. Artificial lift (gas lift) recovery method. Currently, over 90% of the well stock operated by JV
Vietsovpetro are operated using the gas lift method. The gas lift method requires optimization not
only in terms of oil production, but also in terms of gas flooding. Gas lift equipment integrity control
and registering changes in downhole equipment operating mode are required. Solving this problem
requires development of production mode for the wells equipped with gas lift equipment.
2. Multiple zone completion. Reservoir of oil fields of JV Vietsovpetro are represented by sedimentations
of lower Miocene, upper and lower Oligocene and the Basement. Multiple zone completion (MZC)
equipment is used for reasonable and economically efficient development of multi-strata reservoirs.
Currently, over 40 wells are equipped with MZC equipment, and another 10 wells are to be equipped
with such downhole equipment. Consequently, it is necessary to develop a method for calculating the
potential flow rate of such wells and incremental oil production due to using MZC equipment.
3. Considerably different porosity & premeability properties, reservoir pressures and PVT properties
of fluids, and the pore volume structure. The basement has a fracture pattern, while Miocene and
Oligocene rocks are porous. The wells are operated in various geological conditions. It is necessary
to develop a method of forecasting the well productivity index for the steady-state flow and transient
flow taking into account the pore volume structure and properties of the reservoir.
4. The limitations, associated with the presence of the compressor gas. Marine stationary platforms
(MSPs) and drilling platform facilities (DPFs) are connected to the existing infrastructure. Since the
whole gas lift system is looped, and the gas compressor station power is fixed, connection of any
additional facility results in reduced pressure in the system and gas lift flow rate at all infrastructure
facilities. This means that a tool for on-line calculations of optimal distribution of the gas lift is
required by wells and platforms taking into account the maximum pumped volume of gas by the
compressor station.
The reservoir engineers thought that each well has to be calculated and optimized individually for
determination of the gas lift wells optimal flow rate. But changing in one well operator parameters affect
surrounding wells operator parameters. And there are several parameters that must been taking into account:
gas pumping pressure, gas pumping flow rate, and valve setting parameters of each well. However, the idea
of analysis and optimization of the whole well stock is extremely attractive.
This article contains description of an approach to optimization of oil production in offshore conditions,
and presents a way of developing the production mode for the wells operated using the gas lift method.
This way is based on conjugation of calculations of multi-phase flow properties in the wellbore with the
productivity of a multi-layer well system using a nodal analysis method on various operating regimes. A
method of solving the optimization tasks is suggested:

• Minimization of oil production losses due to temporary shutdown of gas compressor stations and
reduction of gas lift supply;
• Maximization of oil production due to optimal distribution of the gas for gas lift between platforms
and wells.
The structure of the article is as follows. First of all, it describes the methodology of calculating movement
of water-oil-gas flow in the well when using the gas lift method. This methodology serves as a basis for
SPE-181903-MS 3

setting up of the production mode of the wells, equipped with gas lift equipment. Then, the algorithms used
for calculation of the well productivity index for wells of various types of completion are considered. This
is followed by summarizing the nodal analysis method for operation of a multi-zone system in a transient-
steady state with non-simultaneous involvement in development of layers of multi-layer system for the
purposes of determining the dynamics of well productivity taking into account the results obtained above. In
conclusion, the article presents the algorithm of optimization of well production through re-distribution of
the gas for gas lift between wells. Some examples of application of the developed approuch for calculations
of optimal parameters of wells at offshore oil fields in the Socialist Republic of Vietnam are discussed.

Hydraulic calculations for a multi-phase flow

Figure 1 shows standard scheme of downhole equipment of gas lift wells, used by JV Vietsovpetro for
single-zone completion (Figure 1a) and multiple zone (Figure 1b) completion. The gas lift is pumped into
the annular space. Consumption of the gas lift is determined on the basis of regular measurements, while
the pumping pressure is considered fixed. Then, via the duty valve, the gas is supplied to the production
tubing and lightens the gas-fluid mixture that fills the wellbore; as a result, the well starts blowing out. If
the well pressure drops below the saturation pressure during the production operations, dissolved gas is
released from the oil in the wellbore or bottom hole zone (BHZ).

Figure 1—Diagram of a gas lift well: a. Single completion well; b. Dual completion well with MZC equipment.
4 SPE-181903-MS

The bottomhole pressure pwf in such well is calculated using the formula (1). pwf consists of the wellhead
pressure pwh, gas-fluid level over the duty valve (points of gas supply to the production tubing)Δp0, and the
gas-fluid mixture pressure below the duty valve Δp1:
(1)
Determination of Δp0 and Δp1 requires using the methods of hydraulic calculations for a multi-phase
flow, which shall meet the following criteria:

• be applicable for a wide range of gas oil ratio values of the well flow rate;

• Be applicable to vertical, inclined and horizontal wells.

A large number of approaches are known for calculations of parameters of a multi-phase flow. These
methods are conditionally divided into empirical and mechanical. Advantages and disadvantages of each
method are discussed in paper [17]. It is assumed that the mechanical methods prevail over the empirical
methods, since they are applicable for wider ranges of parameter values [18].
This paper uses the Beggs and Brill correlation for hydraulic calculations of pressure differentials Δp0
and Δp1 [18], for it is applicable to wells of any design, and is sufficiently simple in use and sufficiently
correct within the identified objective.
Calculation of the pressure gradient for a steady-state flow is made at each part of the well which is
divided into the selected number of sections (see Figure 2). The breakdown is necessary for those parts of
the well where the borehole inclination changes, the piping diameter or configuration changes, for instance,
where a gas lifting valve is situated. The pressure gradient should be integrated over the section length to
get the pressure value.

Figure 2—A wellbore model

(2)

If the sections are sufficiently long, then such sections should be divided into several subsections along
which the pressure gradient can be taken as constant.

(3)
SPE-181903-MS 5

Then, using the Beggs and Brills method, the pressure gradient for each section of the well with any
borehole inclination is calculated. Generally known correlations are used for modelling the PVT properties
of oil (Table 1).

Table 1—Correlations used in this article for calculations of oil PVT properties

Parameter Correlation

Pseudocritical temperature and pressure Standing

Formation volume factor Standing

Compressibility factor Vazquez & Beggs

Z-factor Dranchuk & Abu-Kassem

Oil viscosity Beggs & Robinson

Saturation pressure Standing

Gas oil ratio Standing

Figure 3 shows a comparison of pressure profiles in a well. These profiles have been modelled by means
of certified software and the developed model. The pressure profile in annulus has been calculated using
the barometric function on the basis of the gas density data. According to curves shown on Figure 3, the
average discrepancy between the calculations is no greater than 3%.

Figure 3—Comparison of the calculation results of pressure profile in the well

operating under the developed production mode and certified commercial software.

Well productivity index calculations

For the calculation of the well productivity index, the authors assume that filtration in the reservoir occurs
in the elastic drive and falls into the Darsy's Law. In a common case, we consider movement of the fluid
in a porous-fractured reservoir. Taking into account the assumptions, the pore pressure in the conjugated
fractures in Laplace space can be described by the following differential equation [9, 11]:
6 SPE-181903-MS

(4)

where - Laplace operator for dimensionless space variables. The following values have also been
derived:

(5)

where φf - porosity of conjugated fractures, - compressibility of conjugated fractures, pf - pressure of

conjugated fractures, - fracture permeability tensor, w - density of material sources, L - specific size of
the filtration system, - permeability in i-direction. "f" index means that fractures are considered, while
"m" index refers to the matrix.
The pressure in the matrix is dependent on the pressure in the fracture as per the following formula:

(6)

In this article, complex well completion is modelled using the source method [7, 9]. When considering
a continuous source of strength q(t) in an infinite unlimited reservoir, the change in pressure in fractures in
the Laplace space will be equal to [9, 10]:

(7)

Where G - Green's function for Helmholz operator, - strength q(t) in the Laplace space, u = sf(s),
rD - dimensionless distance to the point under study. Hereinafter, we have omitted the "f" index.
Let us consider a volume source with the density of inflow material based on its volume V′. Change
in pressure in the reservoir in accordance with the superposition principle, equals:

(8)

Boundary conditions are modelled using the reflection method for various forms of the reservoir: laterally
infinite layer, parallelepiped, semi-infinite layer, a stripe-shaped layer, and faults [7, 9].
The solutions described in article [9] are used for modelling the well productivity. This article describes
wells that represent the sources of equal inflow, and infinite and finite permeability, with the modelling of
the sources of finite and infinite permeability using the equal inflow solutions. For this purpose, the well
volume is divided into elements, and, then, numerically, their productivity value for the given moment of
time is derived from the equations system. Let us assume that the well volume V′ is divided into N elements.
The flow density within each element is assumed to be constant. Pressure in the geometric center of an
i-segment can be formulated as follows:
SPE-181903-MS 7

(9)

where - volume of j - element - coordinates of the geometric center of .

The equation that describes movement of the flow within a volume source V′ may be expressed as follows:

(10)

where - reference pressure in the source V′, most often it is the bottom hole pressure, - set of
source parameters V′ (geometry and permeability of the fracture of formation hydraulic fracturing, length
of the horizontal shaft, etc.), - reservoir and fluid characteristics. The function can also be implied:
- pressure in the center of , .
When recording equations (8), (9) for each of N segments, we obtain an N equations system with N + 1
unknown value: N of unknown flows within each segment . An additional equation is obtained from
the general condition given for the well: constant pressure or constant well flow rate:

(11)

where Pwf - given bottomhole pressure, qw - given well flow rate.

The well productivity index is calculated using equations (8)-(10).

Taking into account the multi-phase nature of flow

The multi-phase property of flows is taken into account through considering an efficient filtration system
with an introduced effective viscosity:

(12)

where k0(S), kw(S)-dependence function of relative phase permeability from saturation S, μw - water viscosity,
μ0 - oil viscosity.
Effective compressibility of the system is calculated using the following formula:

(13)

where Cφ - formation compressibility, Co - oil compressibility, Cw - water compressibility.

Release of gas in the process of movement of the water-oil mixture is taken into account in accordance
with an amended Vogel's method described in [8].

Nodal analysis method

A method of nodal analysis is proposed in paper [4] for solution of interaction of the reservoir with the
well at the steady-state flow. A Vertical Lift Performance (VLP) curve is plotted on the "well flow rate/
bottomhole pressure" diagram. This curve describes the well, while the indicator diagram shows the Inflow
Performance Relationship (IPR) that describes the reservoir. The intersecting point of the curves is the
solution – bottomhole pressure and well flow rate that will characterize the system at the steady-state flow
(see Figure 4).
8 SPE-181903-MS

Figure 4—Example of calculation of the well flow rate for a single-completion well using nodal analysis method

In article [5], the authors expanded the nodal analysis method to apply it for a non-steady flow case. In
this case, the vertical lift performance remains unchanged, while the inflow performance relationship curve
changes in time ("non-steady inflow performance relationship"). The intersecting points of the two curves
is the well flow rate and bottomhole pressure at which the system is operating at the given moment of time.
This allows modelling the well operation with well flow rate / bottomhole pressure of an arbitrary type at
a non-steaedy flow.
Some approaches have been suggested for plotting the vertical lift performance curve for a gas lift well,
and for plotting non-steady inflow performance relationship for complex, single-zone well completion.
In article [6], the authors expended the nodal analysis method for the case of a multi-layer system with a
transient flow by taking into account the non-simultaneous starting of layers production. Using the results
of paper [6], we can derive the multi-layer gas-lift well productivity, including the cases when its different
layers are commissioned at different times. We will describe this case below.
Let us assume of a multi-layer well that consists of M layers with various permeability & porosity
characteristics, thickness and formation pressure, and various parameters of well completion for each layer.
Let us also assume that at the initial period the initial pressures are uniform at each layer and equal ,
m
where m - number of a layer. Assume that production from each layer start at the time t . Let us construct a
system of non-steady IPR for a number of bottomhole pressure values: . We shall obtain the multi-
layer system flow rate for each bottom hole pressure value for the number of time moments:

(14)

where qm(t) - well flow rate of an m -stratum; qm(t-tm) = 0 ; if t <tm, if t >tm, then qm(t - tm) is derived using
the single-completion well productivity algorithms that are described above.
After obtaining the vertical lift performance curve, and the set of non-steady IPR for a multi-layer case
(for various time periods), we find their intersecting points, which are the solution for calculation of the
multiple-completion gas-lift well productivity for the case of non-simultaneous starting of production from
each layer. The algorithm for a single-completionsystem is shown on Figure 4, for a dual completion system
– on Figure 5.
SPE-181903-MS 9

Figure 5—Example of calculation of well flow rate for a dual-completion well using nodal analysis method

Solution of gas lift consumption optimization

One of the approaches to reducing operating costs in operations of oil fields using artificial lift (gas lift)
method is reasonable distribution of gas by wells and platforms. This requires solving the following tasks
subject to limitations of the infrastructure:
1. For given maximum fluid flow, it is necessary to minimize the total consumption of gas for the gas
lift well group;
2. For given maximum oil flow, it is necessary to minimize the total consumption of gas for the gas
lift well group;
3. For given maximum compressor gas, it is necessary to maximize oil flow from the well group.
For instance, in case of Problem 3, this means that the well operating modes should be selected so that
to achieve maximum oil flow from all the considered wells taking into account the limited amount of gas
for gas-lift. Let us describe the setting and solution of this problem.
Assume qi and vi - well flow rate and gas lift consumption, respectively, of an i-well, vtotal - total
consumption of the gas lift determined by the gas compressor station production rate. It is necessary to
distribute the gas on the wells so that to ensure maximum possible level of oil production rate, i.e.:

(15)

provided

(16)

Solution of this problem uses numeric algorithms. Calculations are made for all the wells. Each step is
followed by checking the conditions (16). If a well no longer meets the conditions on the minimum and
10 SPE-181903-MS

maximum well flow rates and consumption of the gas lift, such well is assigned with boundary values and
is excluded from further calculations, and the optimization problem is solved for the remaining wells.

Examples of application of the developed production mode for analysis of

JV Vietsovpetro oil wells
Currently, JV Vietsovpetro is developing five oil fields at the Central uplifting of the Cuu Long Basin:
Bach Ho (White Tiger), Rong (Dragon), Tho Trang (White Rabbit), Gau Trang (White Bear), Nam Rong
– Doi Moi (South Dragon – Sea Turtle) (See Figure 5). The depth of the sea in the vicinity of these oil
fields is about 50 m, which allows using the self-elevating floating drill rigs (SEFD) for drilling, and MSPs
for production. Operating the oil fields is carried out from over thirty hydraulic structures with over three
hundred wells at an average well flow rate of 53 tons/day and water cut of 36%.
Oil is recovered from deposits of:
Basement comprised of magmatic fully crystalline rocks [1].
Sedimentary cap represented by terrigene sedimentations [1]:
1. Lower Oligocene;
2. Upper Oligocene;
3. Lower Miocene.
The oil fields are developed using the selective flooding system both on the foundation and on Terrigene
strata. The wells are operated by gas lift and blowing methods; the method of multiple-zone completion
is used.

Figure 6—South Vietnam Shelf's oil fields map.

For the purposes of controlling the operation of the gas lift valves, regular hydrodynamic tests are carried
out at wells to measure the pressure profile in the production tubing. The tightness of gas lift valves and
gas inlet point is determined based on the results of interpretation of the measurements. Figure 7 shows an
example of interpretation of hydrodynamic studies of the pressure profile on a well. It was identified that
the gas inlet point is located at 1500m depth while the plan was 3500m. As a result of replacement of the
valve and restart of the well, the gas inlet point was at 3500 m and the oil flow rate increased by 143 m3/day.
SPE-181903-MS 11

Figure 7—An example of adaptation of the model to interval measurements of pressure in the production tube

Figure 8a and Figure 9a shows examples of calculating productivity of single-completion and dual-
completion wells using the nodal analysis method. The well flow rates were determined for various operation
modes of the gas lift riser (gas lift consumption). Consumption characteristics are plotted for the purposes
of calculating the optimal operation of the wells: Figure 8b and Figure 9b. Consumption characteristics may
be plotted at varying of different parameters of the "stratum-well" system: gas lift consumption, formation
pressure, productivity index, water cut, gas oil ratio, collar pressure, choke diameter, etc.

Figure 8—An example of calculating flow rates of a single-completion well

using the nodal analysis method for various operating modes of gas lift riser:
a. Nodal analysis of the well for various consumption rates of gas lift;
b. Consumption characteristics of a gas lift well for various consumption rates of gas lift.
12 SPE-181903-MS

Figure 9—An example of calculating the flow rate of a dual-completion well equipped with MZC
equipment using the nodal analysis method for various operating modes of the gas lift riser:
a. Nodal analysis;
b. Consumption values of a gas lift well for various consumption rates of gas lift.

Figure 10 shows an example of the algorithm for optimization of the gas lift consumption for five
production wells at one platform. Total gas consumption before and after optimization of well operation
does not change and equals vtotal= 19 000 m3/day. Total oil flow rate before optimization of the gas lift equals

, after optimization - .

Figure 10—An example of optimization of operation of a well group:

a. Optimization of oil production;
b. Redistribution of gas lift between the wells.

Conclusions
Taking into account the specific nature of operation on offshore oil fields:
1. A production mode has been developed for operation of wells equipped with gas lift equipment.
Examples of application of the production mode have been presented for:

◦ Interpretation of well test to determine the operation of gas lift valves;

SPE-181903-MS 13

◦ Well potential capacity assessment;

◦ Determination of incremental of iol rate due to optimization of downhole equipment operation

(consumption of gas lift).
2. A method of forecasting the productivity of a well equipped with MZC equipment that develops
several layers at the same time is discribed.
3. The problem of gas lift consumption optimization has been considered for the wells operated using
artificial lift method (gas lift) in offshore conditions. A method of solving this problem has been
proposed.
The efficiency of the proposed methods and algorithms has been demonstrated at the example of JV
Vietsovpetro well operation optimization.

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