Reservoir Engineering

Martin Roberts
29th Oct 2018
GL5205
OGEM, University of Aberdeen
 Reservoir Engineering Topics
5 Lectures + 1 Assignment
1. Introduction to Oil & Gas Project Delivery 29 Oct
2. Reservoir Management 05 Nov
3. Wells and Surface Facilities 13 Nov
4. Reservoir Fluids 16 Nov
5. Maximising Recovery from Oil & Gas Fields 20 Nov
Assignment 2 : Deadline 30th Nov 2018
 Proposed Format
Interactive, 2 way learning:

1) Lecture on selected RE topic (1 hr)

2) Question & Answer discussion (20 mins)
3) Example problem Teamwork (1hr)
 Oil & Gas Project Delivery

• 4 Major phases of in the Project life cycle:

Exploration
Appraisal
Production
Decommissioning
 Exploration
 High risk activity : POS < 5%?
 No guarantee of success
 Expensive operations : circa $150M

Where to focus?
Dedicated multifunctional technical teams
Prospect identification, licence block award
 Drill – are hydrocarbons present??
 What are the Risks?
• Technical
plus
• Economic
• Commercial
• Organisational
• Political
Exploration – where next?
 UK North Sea
• UKCS – United Kingdom Continental Shelf
• Divided into blocks
• 15 x 20 km aerial extent offshore
• Vertical domain to circa 21,000 ft (7Km)
• Consider 3D gross rock volume; dimensions
and variation in rock types present within…
• New domains onshore being defined for shale
gas…
 UKCS
Exploration  Discovery
 Exploration
• Multi-Risk Project Threats
Long project time duration
Cash flow
Political change
Logistical supply and equipment
Cost overruns
Climatic storms
Exploration Blocks : Frontier Example
Example Gas/Oil Field Geometry
 Exploration
• Definition of Success:

‘We have drilled a well, and encountered

hydrocarbons’

Question:
Is the project now fit to be developed?
 Appraisal
• Exploration success!
• But…..
• How much hydrocarbon is in place?
• Limitations of one well’s data
• Prospect may have large dimensions e.g. (16 *
5km) Brent Field
• How much continuity in reservoir rock?
• How much oil can be recovered?
 Appraisal
• Equity Holding via business partners
• Risk sharing
• Access to investment capital
• Cash flow management, particularly in project
early stages

• Field extension across block boundaries

• Unitisation
• Agreements to divide STOIIP and reserves
Rock Complexity in 3D
Appraisal Reservoir Challenges
Production Delivery
Brent Field
Reservoir Correlation and Flow
Unit Definition
Decomissioning
Creative design
Heavy Lift and Recycle
 Discussion

• Question and Answer opportunity.

• Capture points
• Check background to related decisions
Oil & Gas Project Delivery Exercise
• In Teams of 4: brainstorm risk elements in
each major stage of Oil & Gas project delivery.
• What do you consider to be the key risk areas?
Explain your reasoning.

Duration : 45 mins + feedback

 Glossary
• API : American Petroleum Institute
• STOIIP: Stock tank oil initially in place
• TVD SS : true vertical depth subsea (-12,568 ft)
• RPM: rotations per minute
• WOB: weight on bit
• Mud : drilling fluid
• Wireline Logging : rock data measurement
• POS : probability of success
• TLP : Tension leg platform
• Kv, Kh : vertical and horizontal permeability
 Glossary
• UKCS : UK continental shelf
• FVF : formation volumn factor
• bbl : oil volume unit
• stb : stock tank barrel
• Boe : barrel oil equivalent
• SCF : standard cubic feet
• psia : pressure unit absolute
• OPEX : Operating expenditure
• CAPEX : Capital spend
• Sweet Spot : optimal reservoir target section
 Glossary
• EMV : Expected monetary value
• UR : Ultimate recovery
• RF : Recovery factor
• Bopd : barrels of oil per day
• GRV : Gross rock volume
• Perforation : shots casing for production
• BHA : bottom hole assembly; loads the bit
• Drillstring : complete drilling assembly
• MWD : measurement while drilling