1 - Field Development Planning - Intro + FDP Team

Step-by-step Procedure for an
effective Field Development Plan

supported by the related Basic
Engineering Concepts
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.
 The purpose of this document is to provide the step-by-

step project management techniques procedures for an
effective Field Development Plan. For a better
understanding, the step-by-step procedures are
supported by a comprehensive statement outlining of
the related basic engineering concepts.
May 2017 G. Moricca 2
Project Management
The basic elements of any project are the same. The detailed attention required for
each element will vary, depending upon the project’s size and complexity. What is
required for an efficient Project Management is the preparation of the following
documents and their implementation on the project:
1. Project Plan — a document which fully describes the basis for undertaking the
project.
2. Organizational Structure — organization charts and position descriptions that
define the complete organization.
3. Project Control Schedule — includes the work breakdown structure (WBS),
work package description sheets, milestone charts and networks.
4. Project Control Budget — related to the WBS, properly coded, structured to
recognize the manner in which costs are actually collected and with a system for
tracking contingency.
5. Project Procedure Manual — a document which presents the exact
management work procedures to be used, work scopes, responsibilities,
authorities, interfaces and reporting methods.
The Project Plan
The project plan states and defines the following items:
- objectives of the project,
- its primary features,
- technical basis,
- project constraints,
- primary schedules,
- budget considerations,
- management approach,
- organization,
- procurement and contracting strategy and any other information
needed to do the project work.

Organization
Selecting the correct project organization is one of the most important and difficult
tasks. The organization must be selected to meet the specific requirements of each
project.
Factors influencing the selection of the organizational structure could include:

- What is the size of the project?
- Is the completion schedule critical?
- Is the engineering to be subcontracted or performed as part of the project group?
- If the engineering is subcontracted will all purchasing be performed by the
engineering subcontractor?
- If so, what controls are required over purchasing?
- How are construction contracts to be awarded?
Once the basic organizational structure has been selected, all positions should be
identified, coded and a personnel mobilization schedule selected.

Project Control Schedules
 Project control schedules and their supporting work

breakdown structures are needed as early as possible
for preparation of the project control budget and other
start-up work.
 A complete work breakdown structure is developed as

a first step to give the basis for all subsequent
scheduling and budgeting.

Project Milestones and Authorization Process
 Project control schedules should include a master milestone bar-chart showing
major project milestones and project networks.
Field Development Activities

Conceptual Submission Drilling Production
Screening PDO/PIO Start Start
Appraisal Concept PDO approval Facilities

Feasibility Selection Contract Installation
Study Award
Time
PDO = Plan for Development and Operation (Hydrocarbon withdrawal)

PIO = Plan for Installation and Operation (Pipeline & Surface Infrastructure)

Project Control Budget
 Another important task during project start-up is the preparation of a
project control budget.
 The final control budget usually cannot be fully developed until

engineering design has progressed to a point allowing reasonable cost
estimation.
 It is still important to structure the entire project control budget, apply a

coding system and accomplish the costing as far as possible to enable
early completion of the control budget as design continues.
 Cost control can be no better than the project control budget with which
actual costs are compared.
 Sophisticated cost control techniques cannot correct the shortcomings of a

budget that is incomplete, not logically coded, employs poor cost data and
has inadequate contingency and escalation amounts.
Project Procedure Manual
Each project should have a project procedure manual which tells all project
participants what they have to do and how they should do it. The contents
of a typical Project Procedure Manual should include:
- Project objectives, including profitability and implementation
- Basic decision criteria, with focus on HSE, economy and technology
- Development solutions strategy
- Basic design criteria and relevant assumptions
- Reservoir development strategy
- Well completion strategy
- Production strategy
- Infrastructure: Tie-in to other fields or facilities expansion
- Uncertainty analyses for resource and technical solution
- Evaluation of risk elements for the concept(s) and implementation
- Evaluation of potential need to develop new technology and/or use
untraditional solutions

Peculiarities of the Upstream Oil and
Gas Industry
 The upstream industry is arguably the most complex of all the oil and gas business
sectors. As illustrated in the diagram, it is highly capital-intensive, highly risky,
and highly regulated. Upstream investments are high-risk, given that results of
every well drilled are unpredictable. Additional risk arises from safety and
environmental issues.
 Upstream is also High Risk - High Return

subject to global
forces of supply and Highly Regulated
demand, economic
growth and
Impact by Global Politics
recessions, and
crude production
quotas. Technology Intensive

Oil or gas field life cycle
 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
1-3 years 1-5 years 10-50 years

- Geologic structure - Drilling & Completion - Production System Surveillance
- No of Flow units - Well Testing - Downhole Data Acquisition
- Rock Properties - On line reservoir model - Asset Management
- Fluids Properties updating and fine-tuning
- Driving Mechanism - Flow Lines
- No Producing wells - Surface Facilities for
- No of Injection wells produced and injected
- Expected workovers fluids: Separators,
Compressors, Pump
stations, Measuring System

Appraisal Phase
 It is the phase of petroleum operations that immediately follows
successful exploratory drilling.
 During appraisal, delineation wells might be drilled to determine the
size of the oil or gas field and collect cost-effective information
useful to decide if and how to develop it most efficiently.
May 2017 G. Moricca SacOil Holdings

12 Ltd
Field Appraisal Objective [1]
 The objective of performing appraisal activities on discovered
accumulation is to:
• Reduce the uncertainty in:
- Volume of hydrocarbon in place (OHIP)
- Description of the reservoir
• Provide information with which to make a decision on the nest
actions.
 The next action may be to:

- Undertake more appraisal
- Commence development
- Stop activities
- Sell the discovery

Field Appraisal Objective [2]
 Goal: Improving the quality of the data and reducing uncertainty.
 Outcome: Well fluid characteristics, OOIP, Recoverable oil, production

profile, with sufficient uncertainty.
 Method: More appraisal wells will be drilled, more measurements.
Reservoir Model Tuning PDF ‐ CDF Production & Pressure

Making Good Decision [1]
 The decision to undertake more appraisal activity is a cost-effective information
inly if the value of outcome with the appraisal information is grater than value of
the outcome without the information.
 Supposing:
- Cost of appraisal information is $[A]
- The profit of the development without the appraisal information is $[B]
- The profit (net present value, NPV) of the development with the appraisal
information is $[C]
The appraisal activity is worthwhile only if [C - A] > [B]
NPV
($)
Develop without
[B]
appraisal information
Cost of appraisal
$[A]
Develop with appraisal
[C]
information

Making Good Decision [2]
 The make economic analysis to make decision ‘to do’ or
‘not to do’, it is necessary to assume outcomes of the
appraisal in order to estimate the value of the
development with these outcomes.
 The reliability of the economic analysis, and

consequently the reliability of the decision to make
decision ‘to do’ or ‘not to do’, is strictly correlated to
the technical capability and awareness of the field
development team as well as management decision.

Activities to reach the First Oil
 FDP time scheduling
 Design of the
subsurface and surface
facilities
 Procurement of materials
 Fabrication of the facilities
 Installation of facilities
 Commissioning of all plant and equipment's

The main topics to be faced for a proper oil
or gas field development project
1. Understand the environment 4. Propose options and examine
- Location - Offshore
- Geotechnical - Onshore
- Market - Develop technical definition and cost estimate
- Infrastructure for each
- Fiscal and political regime
- Production-sharing contract terms 5. Commercial analysis
- Build economic model
2. Understand the reservoir and quantify - Use previous steps to examine various scenarios
uncertainties - Understand risked economics and economic
- Reserves drivers and sensitivities
- Number of wells
- Well rate
- Produced fluid composition; flow assurance
- Reservoir management strategy
3. Understand the drilling

- Well Architecture
- Cost per well
- Number of drill centers required
- Intervention frequency and cost
- Wet vs. dry trees (pros and cons)

Main Differences
Between
Onshore and Offshore
Field Development
Practices

Onshore vs Offshore Field Development
 One of the “fathers” of modern Petroleum Engineering
technology, L. P. Dake, states:
“A field is a field whether located beneath land or

water and the basic physics and mathematics
required in its description is naturally the same.
Where the main difference lies in the application of

reservoir engineering to field development is in
decision making: the nature, magnitude and timing
of decision being quite different in the offshore
environment.”

Onshore
 Governmental regulations permitting and provided there are
production facilities in the locality, the well should be tied back to
the nearest block station and produced at high rate on a
continuous basis.
 An obvious advantage is that it provides a positive cash flow from

day one of the project but of greater benefit is that it permits the
reservoirs to viewed under dynamic conditions from the earliest
possible date.
 Moreover, when each subsequent appraisal development well is

drilled, the conducting of drill-stem tests (DSTs) or, more
significantly, repeat formation tester (RFT) surveys will convey to
the engineer the degree of lateral and vertical pressure
communication: data that are indispensable in the planning of a
successful secondary recovery flood for water or gas injection.
Offshore
 In this environment the sequence of events in field developments
is much more compartmentalised than onshore.
 Following the discovery well on an accumulation a series of
appraisal wells is drilled to determine the volume of hydrocarbons
in place and assess the ease with which they can be produced: two
obvious requirements in deciding upon the commercial viability of
the project.
 Unfortunately, the appraisal wells, which may range in number
from one or two on a small accumulation to twenty or more on a
large, cannot usually be produced on a continuous basis from the
time of their drilling, since the offshore production and
hydrocarbon transportation facilities are not in existence at this
stage of the development.
Average Operational Costs
Economic component Onshore Offshore

50-100 up to
Average Drilling Cost per well - $ million 3 to 6
200
Average Completion Cost per well - $ million 1 to 2 10 to 20
Min suitable production rate - BOPD 100 - 250 2500 - 5000
Workover cost - $ million 1 to 2 5 to 10
Estimated break-even price @ 2015 $/bbl 25 - 30 50 - 70

Onshore vs Offshore Breakdown costs
- $/bbl - for regional oil production

Offshore vs Onshore Drilling Activities
 The basic equipment is similar for both onshore and offshore drilling. Both require
exploratory equipment, pumps, storage facilities and pipelines to drill and collect the oil.
One major difference for offshore drilling is the need for stability. Onshore drilling provides
natural stability in the form of the earth’s hard surface. Once anchored to the ground, the
rig remains stable and secure.
 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.
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.
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.
May 2017 Diagram

G. Moricca of different types of offshore drilling27rigs.
Offshore vs Onshore Storage and Transport
 Storage and Transport Methods - Onshore drilling offers more options for storage and
transport of the oil after it is extracted from the well. The solid ground surrounding the
wells allows for additional processing facilities on site. The location also allows for easy
accessibility by trucks and other vehicles, so the oil can easily be transported to other
facilities for processing and distribution.
- Offshore oil drilling presents more of a challenge to the storage and transport
process. This is particularly true for deepwater drilling that takes place far off the
shore. The circumstances require special equipment and methods for processing the
oil and transporting it after extraction.
- Offshore projects close enough to the shore can use a system of pipelines to bring
the oil directly to shore.
- For deep wells and those far off the shoreline, barges or tankers process and store the
oil until it is taken ashore. These vessels are called Floating Production, Storage and
Offloading units, or FPSO for short.
- As the name suggestions, FPSO units can handle the initial processing of the oil while
out on the water. The ship is also designed to store the oil until it is offloaded onto a
tanker. Each of these vessels holds 2.5 million barrels of oil. Some of these vessels only
store and offload the oil. Large offshore production areas may use multiple FPSO units
to keep up with the demand of the project.
Offshore vs Onshore Cost Differences
 Offshore oil wells cost significantly more and depend on factors such as well depth, water
depth, productivity and distance to the infrastructure. In the Miocene area with shallower
water and well depths, the average cost for drilling and completion is $120 MM. In the
deepest Jurassic projects, costs can be as high as $230 MM. The breakdown of costs varies
somewhat for offshore drilling activities. Those categories include:
- 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.

Step-by-step Procedure
for an effective
Field Development Plan
according to the
Front-End-Loading (FEL)
Process
Front-End-Loading (FEL) Process [1]
 Front-end-loading (FEL) should be considered as a sound field development practice
that allows the optimum allocation of capital and human resources, reduces the
uncertainty of key information and ensures a holistic view to all field development plan
decisions.
 Front-end-loading methodology is a 3-step capital project planning process:
- FEL 1: The prefeasibility stage;
- FEL 2: The feasibility stage, and;
- FEL 3: The basic engineering and development stage.
FEL-1 FEL-2 FEL-3
May 2017 G. Moricca SPE 167655 L. Saputelli et others

31 - 2013
Front-End-Loading (FEL) Process [2]
 The FEL methodologies allow and actually force by process due diligence
the Oil & Gas companies to take better decisions during field
development planning process to improve the value of subsurface
resources while minimizing risk during field development execution
phase. The key advantages are:
- Ensure that the business objectives are aligned with the technical
objectives
- Human resources are better utilized
- Financial Risk is minimized
- Early production team participation
- Evaluate a large number of scenarios implies that some
opportunities
- Standard process for a well-defined decision making

Objectives and key activities of the phases
FEASEBILITY SELECT DEFINE EXECUTE OPERATE
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%
Field Development Planning G Stage Gate – Decision to Proceed

Front-end Loading Methodology
 In the past decades, various initiatives have been put in place to organize
project management knowledge with an emphasis on methodologies
outlined by the Project Management Institute (PMI) and Independent
Project Analysis (IPA).
 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.
 The FEL methodology is focused on the early stages of a project, aiming at

progressively increasing the level of maturity of technical information,
limiting investment in each phase, and ensuring that the decision-making
about the continuity of the project in each phase can be developed based on
both technical and financial documentation.
Front-end Loading phases for full
field development project
 FEL 1: Opportunity identification - This is the business assessment phase, where the
verification of strategic alignment with the company’s business plan and market
opportunities takes place. This step involves the definition of the scope and
objectives of the project, as well as an initial estimate of the amount of investment
required, by providing a range of variation in cost.
 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.
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
• Risk Analysis  Preliminary Engineering.

6C
6D
• Health, Safety and Environmental
6E
• Final Selection Field Development alternative
7
• Field Development Plan Approval
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
•Set an
Integrated FDP
Team and
1 Define a clear
Target

Identification and Assessment of Opportunities
FEASEBILITY SELECT DEFINE EXECUTE OPERATE
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%
Field Development Planning G Stage Gate – Decision to Proceed

May 2017
Stage 1: Identification and Assessment
of Opportunities [1]
 The field development begins when the exploration phase ends:
when an exploration well has made a discovery.
 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.
 The aim of the assessment phase is to highlight the technical and

commercial feasibility of the project.
Stage 1: Identification and Assessment
of Opportunities [2]
 To do so, it is necessary to find out as
much as possible about the reservoir and
to minimize the uncertainties. Actions that
help to do so dynamic reservoir models.
The reservoir engineers generate a 3D
model of the subsurface so that they can
estimate how much oil is hidden under the
surface.
 The engineers plan the entire production phase and address all sorts of
practical questions, such as: How many wells must be drilled and where?
Can the oil be recovered to the surface in an on-shore project with a
simple horse-head pump? Is the oil so corrosive that the pipes need a
special coating? How can the maximum production volume be achieved –
for example, by injecting water or gas into the reservoir? And when should
this procedure begin?
Field Development Planning (FDP)
Field Development Planning is the process of evaluating multiple
development options for a field and selecting the best option based
on assessing tradeoffs among multiple factors:
 Net present value, typically the key driver of decisions for

publicly-traded operators.
 Oil and gas recovery
 Operational flexibility and scalability
 Capital versus operating cost profiles
 Technical, operating and financial risks.

Feasibility Study
 The task is to identify opportunities and perform all required
studies (Feasibility Study) to generate a development plan that
satisfies an Operator’s commercial, strategic and risk objectives.
 The execution of the Feasibility Study involves a continuous

interaction between key elements:
- Subsurface
- Surface
- Business Sub
Surface
 The process requires
continuous and effective
collaboration and alignment
between reservoir, well Business Surface
construction, surface facilities
and commercial teams
Outcomes of the Feasibility Study
 The main objective of Feasibility study is to

identify opportunities and provide consistent
and reliable answers to question like:
- Does the technology exist ?
- Is it technically feasible?
- Can it be built to the required size?
- Can it be installed?
- Do the risks appear manageable?

Feasibility Study Working Plan
During the execution of the feasibility study, the engineers will:
- Investigate the multiple technologies to be used
- Evaluate the costs of each solution, especially during the total life cycle of the
project including capital expenditure for the construction (CAPEX) and
operational expenditure (OPEX) to run the plant
- Estimate construction challenges versus benefits in operations and vice versa
- Measure the impact on the environment (foot print, water and energy
consumption, CO2 emissions, local acceptance, decommissioning and
restoration costs)
- Draft planning corresponding to each solution to identify critical items
- Identify potential risks on the project and hazards for personnel
- List all the required offsite and utilities
- Determine all the infrastructures needed to bring in the feedstock and to export
the production
- Include local constraints about regulation, taxations, employment, content
FDP Integrated Team
An integrated, multidisciplinary team approach is
required for a proper Feasibility study and the others
activities connected with the FDP. The team should
include the following professionals:
 Geologists responsible for geological and petrophysical works.
 Reservoirs engineers responsible for providing production forecast and
economical evaluation.
 Drilling engineers responsible for drilling offshore drilling systems selection
and drilling operations.
 Completion engineers responsible completion design and operations.
 Surface engineers responsible for designing/selection surface and
processing facilities.
 Other professionals, if needed, such as pipeline engineers, land manager,
etc.
FDP Integrated Team
An integrated team is a group composed of members with varied but
complimentary experience, qualifications, and skills that contribute
to the achievement of the organization's specific objectives.
Reservoir
Engineer
Economic Geologist &
Expert Geophysicists
Minimum
components/skills FDP
Integrated Drilling
for an integrated FDP HSE Engineer
Team Engineer
Coordinator
multidisciplinary
team Facilities Completion
Engineer Engineer
Production
Engineer

Responsibility and Role of the Team
Coordinator
Responsibility:
 To successfully deliver a FDP, within the allocated budget,
human resources and timeframe.
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
FDP Target Identification
 Identification of a clear target based on
the data collected during the field
appraisal and in line with company
strategy.
 Use the reservoir numerical model is a key

tool to determine the optimum technique
for recovering of the hydrocarbons from
the reservoir.
 Development plans are defined through simulation studies

considering either a probabilistic or a stochastic approach to
rank options using economic indicators, availability of injection
fluids (i.e., water and/or gas), and oil recovery and risk, among
other considerations.
Main causes of the Failure of FDP
 Incomplete or poor quality reservoir data: contaminated fluid
samples, poor PVT analysis, incomplete pressure survey, partial
knowledge of the areal distribution of fluids saturation, poor
knowledge of the vertical and horizontal areal transmissibility, etc.
 This means that project
teams are forced to make
assumptions about missing
data or about remaining
risks in their production
forecasts.
 Reservoir related problems
have the largest and most
lingering effect on
production.
January 2018 G. Moricca 50
Reservoir Model as the Standard Tool for FDP
 The success of oil and gas FDP is largely determined by the
reservoir: its size, complexity, productivity and the type and Reservoir Model
quantity of fluid it contains. To optimize a FDP, the Outcomes
characteristics of the reservoir must be well defined. dictate
Unfortunately, in some cases, a level of information available
is significantly less than that required for an accurate Volumes
description of the reservoir and estimates of the real situation
need to be made.
Rates
 Reservoir numerical model is a standard tool in petroleum Well

engineering for solving a variety of fluid flow problems involved Architecture
in recovery of oil and gas from the porous media of reservoirs.
Well
Completion
 Typical application of reservoir simulation is to predict future
performance of the reservoirs so that intelligent decisions can Surface
be made to optimize the economic recovery of hydrocarbons Facilities
from the reservoir. Reservoir simulation can also be used to
obtain insights into the dynamic behavior of a recovery process
or mechanism.
Typical Reservoir Study Contents
1. Reservoir Characterization
- Geological Setting
- Stratigraphic and Facies Analysis
- Petrophysical Analysis
- Reservoir Facies and Properties Maps
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
3. Evaluation of Development Strategies

- Evaluation Recovery schemes: natural depletion;
natural depletion assisted by water (Water-flood),
gas injections, alternate water and gas injection, etc.
- Oil, Gas and Water Production Forecast
- Evaluation Infill Potential
Expected Reservoir Study Outcomes
- Original Hydrocarbon in place - OHIP
- Recoverable Hydrocarbons (Reserves and Reserves classification: Proven, Probable,
Possible)
- Oil, water and gas production profile (for field, well, flow units)
- Fluid Porosity map
- Permeability (vertical and horizontal) map
- Initial Static Pressure map
- Actual Static Pressure map (for brown fields)
- Fluids Saturation map
- Most probable reservoir drive mechanism and its strength
- Gas-Oil and the Oil-Water Contact depth
- Number of production wells to be drilled
- Duration of Natural Flow period for each well
- Identification of the most effective Secondary Hydrocarbon Recovery technique to be
adopted
- Number of injection wells to be drilled (if required)
- Number of disposal wells to be drilled (if required)
- Surface and downhole coordinates of planned wells to be drilled
- Water or Gas Injection profile (if required)
- Workover plan to sustain the hydrocarbon production during the field life cycle

1 - Field Development Planning - Intro + FDP Team

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1 - Field Development Planning - Intro + FDP Team

Uploaded by

Copyright:

Available Formats

Step-by-step Procedure for an

effective Field Development Plan

 The purpose of this document is to provide the step-by-

May 2017 G. Moricca 4

Factors influencing the selection of the organizational structure could include:

May 2017 G. Moricca 5

 Project control schedules and their supporting work

 A complete work breakdown structure is developed as

May 2017 G. Moricca 6

Field Development Activities

Appraisal Concept PDO approval Facilities

PDO = Plan for Development and Operation (Hydrocarbon withdrawal)

May 2017 G. Moricca 7

 The final control budget usually cannot be fully developed until

 It is still important to structure the entire project control budget, apply a

 Sophisticated cost control techniques cannot correct the shortcomings of a

May 2017 G. Moricca 9

 Upstream is also High Risk - High Return

May 2017 G. Moricca 10

1-3 years 1-5 years 10-50 years

May 2017 G. Moricca 11

May 2017 G. Moricca SacOil Holdings

 The next action may be to:

May 2017 G. Moricca 13

 Outcome: Well fluid characteristics, OOIP, Recoverable oil, production

 Method: More appraisal wells will be drilled, more measurements.

Reservoir Model Tuning PDF ‐ CDF Production & Pressure

May 2017 G. Moricca 14

May 2017 G. Moricca 15

 The reliability of the economic analysis, and

May 2017 G. Moricca 16

 Fabrication of the facilities

 Commissioning of all plant and equipment's

3. Understand the drilling

May 2017 G. Moricca 18

May 2017 G. Moricca 19

“A field is a field whether located beneath land or

Where the main difference lies in the application of

May 2017 G. Moricca 20

 An obvious advantage is that it provides a positive cash flow from

 Moreover, when each subsequent appraisal development well is

Economic component Onshore Offshore

Average Completion Cost per well - $ million 1 to 2 10 to 20

Min suitable production rate - BOPD 100 - 250 2500 - 5000

Workover cost - $ million 1 to 2 5 to 10

Estimated break-even price @ 2015 $/bbl 25 - 30 50 - 70

May 2017 G. Moricca 23

May 2017 G. Moricca 24

May 2017 Diagram

May 2017 G. Moricca 29

FEL-1 FEL-2 FEL-3

May 2017 G. Moricca SPE 167655 L. Saputelli et others

May 2017 G. Moricca 32

Field Development Planning G Stage Gate – Decision to Proceed

 The FEL methodology is focused on the early stages of a project, aiming at

• Risk Analysis  Preliminary Engineering.

May 2017 G. Moricca 38

FEASEBILITY SELECT DEFINE EXECUTE OPERATE

Field Development Planning G Stage Gate – Decision to Proceed

 The aim of the assessment phase is to highlight the technical and

 Net present value, typically the key driver of decisions for

 Oil and gas recovery

 Operational flexibility and scalability