IBP1296_12 INTEGRATED MANAGEMENT OF OPERATIONS IN SANTOS BASIN – METHODOLOGY APPLIED TO A NEW PHILOSOPHY OF OPERATIONS Leandro L.

Pereira1, Dário Derenzi2, Cláudio B. C. Lima3 , Vladimir S. Pinto4, Gilson B. A, Lima5,
Copyright 2012, Instituto Brasileiro de Petróleo, Gás e Biocombustíveis - IBP Este Trabalho Técnico foi preparado para apresentação na Rio Oil & Gas Expo and Conference 2012, realizado no período de 17 a 20 de setembro de 2012, no Rio de Janeiro. Este Trabalho Técnico foi selecionado para apresentação pelo Comitê Técnico do evento, seguindo as informações contidas no trabalho completo submetido pelo(s) autor(es). Os organizadores não irão traduzir ou corrigir os textos recebidos. O material conforme, apresentado, não necessariamente reflete as opiniões do Instituto Brasileiro de Petróleo, Gás e Biocombustíveis, Sócios e Representantes. É de conhecimento e aprovação do(s) autor(es) que este Trabalho Técnico seja publicado nos Anais da Rio Oil & Gas Expo and Conference 2012.

Resumo
O objetivo deste artigo é apresentar a metodologia de trabalho utilizada no desenvolvimento do projeto de Gerenciamento Integrado de Operações (GIOp) na Unidade Operacional da Bacia de Santos (UO-BS), na área de Exploração e Produção Sul-Sudeste da Petrobras. O texto a seguir descreve como foram realizadas as atividades de levantamento de oportunidades de melhorias e modelagem dos processos futuros, considerando o cenário desafiador da Bacia de Santos nos próximos anos. Ao final de mais de 12 meses de trabalho, mais de 50 processos e subprocessos foram redesenhados envolvendo uma equipe multidisciplinar nas áreas de operações, manutenção, segurança, meio ambiente e saúde, elevação e escoamento, poços, reservatórios e planejamento.

Abstract
The objective of this paper is to present the methodology used to develop the Integrated Management of Operations (GIOp) project in Santos Basin Operational Unit (UO-BS) in the South-Southeast Exploration and Production area of Petrobras. The following text describes how the activities were carried out to gather improvements opportunities and to design To-Be processes, considering the challenging environment of the Santos Basin in the coming years. At the end of more than 12 months of work, more than 50 processes and sub-processes were redesigned, involving a multidisciplinary team in the areas of operations, maintenance, safety, health and environment, flow assurance, wells, reservoirs and planning.

1. Introduction
In 2007, Petrobras and its partners announced the discovery of oil and natural gas reserves with huge potential and good recovery prospects, in reservoirs located below a thick layer of salt in the Santos Basin, in the southeastern coastline of Brazil. Currently, estimates of recoverable volume in the pre-salt concessions of Santos Basin are estimated between 13.9 and 16.3 billion barrels of oil equivalent (boe), without considering the 5 billion boe that Petrobras has acquired the Brazilian government by legal instrument called "onerous concession" (Cessão Onerosa). To produce these reserves, Petrobras and its partners intend to install, until 2017, thirteen FPSO units (Floating, Production, Storage and Offloading), including the one in the pilot phase of the Lula field (former Tupi filed), already installed. The expectation is that by 2017, production will exceed 1 million barrels a day. This accelerated growth plan in the exploration and production (E&P) activities in the pre-salt Santos Basin brings unprecedented challenges to the oil and gas industry and, specifically, to Petrobras as the operator of such concessions. How to produce in a safe and profitable manner, in increasingly distant horizons and in increasingly complex

______________________________ 1 System Analyst – Petróleo Brasileiro S.A. 2 Mechanical Engineer – ACCENTURE 3 Petroleum Engineer – Petróleo Brasileiro S.A. 4 System Analyst – Sonda IT 5 PhD in Production Engineer – Universidade Federal Fluminense– UFF

Rio Oil & Gas Expo and Conference 2012 environments? How to ensure efficiency in all internal and external operational interfaces, maximizing the expected results, considering a rising production volume? How to integrate planning and operational processes to avoid duplication of efforts and to ensure greater safety in operations, optimizing financial, technological and intellectual resources? To address these challenges, in 2010 Petrobras initiated its Integrated Management of Operations program GIOp. More than a program for restructuring and improving operational processes, GIOp is a new work philosophy, having as a central pillar the integration of E&P processes. Managed centrally by Petrobras’ E&P Production Engineering area, the GIOp program includes, in addition to exploration and production, initiatives focused on logistics, subsea operations and wells, as shown in Figure 1.

Figure 1. GIOp schematic view

2. Integrated Management of Operations in Santos Basin Operational Unit: GIOp-BS
In Santos Basin Operational Unit, the Integrated Management of Operations project, called GIOp-BS, had its design phase divided into two distinct phases: the Conceptual Design phase, aimed at identifying current and future opportunities for improvement (pain points), and the Basic Design phase, focused on detailing these opportunities into ToBe processes. Additionally, in parallel to these phases, Change Management and Pilot Initiatives were implemented. To conduct this work, the GIOp-BS project implementation team used the following methodology, presented in Figure 2.

Figure 2. GIOp-BS implementation methodology 2.1. Conceptual Design – Opportunities Identification The Conceptual Design phase was focused on identifying opportunities based on pain points, considering Santos Basin future scenario projected for 2020/2030 time frame. These opportunities were raised through interviews at different hierarchical levels across the entire E&P area, using a top-down and bottom-up approach (based on senior management point of views, and subject matter experts carefully selected in their respective specialties). To encourage the process of opportunities discussion and identification, a future operational scenario for Santos Basin were presented during the interview, highlighting the technical, logistical and organizational challenges, among others. At the end of this stage, after conducting more than 170 interviews, the results were consolidated into more than 50 improvement opportunities, distributed by the disciplines of manufacturing, logistics, operation and construction of wells, reservoirs, maintenance, operations and safety, health and environment, grouped according to their impact on the 2

Rio Oil & Gas Expo and Conference 2012 fast, medium and long loops, as shown in Figure 3.

Figure 3. Distribution of the opportunities identified during Conceptual Design 2.2. Basic Design – Processes Design The set of opportunities identified during the Conceptual Design phase was used as a starting point for the To-Be processes design, in addition to other GIOp program corporate drivers related to management, infrastructure, people and technology. To properly address these opportunities into the suitable E&P work processes, and to ensure alignment with corporate initiatives for business process management, the first step of the Basic Design phase was to link these opportunities into the corporate E&P value chain, with GIOp central team support, as shown in Figure 4.

Figure 4. Relationship between Opportunities, E&P Value Chain and To-Be Processes Portfolio Upon completion of these analyzes, more than 30 E&P processes were identified as directly impacted by the opportunities. These set of processes were defined as the To-Be processes portfolio for detail design activities. Having this scope defined and validated by the stakeholders, planning and execution phase was initiated. 2.2.1. Processes Design – Planning The main concern during the planning stage was to ensure the appropriate identification and involvement of subject matter experts from UO-BS and other operational units, in addition to the involvement of support areas such as Production Engineering, Human Resources, Information Technology and Telecommunications and the Petrobras Research and Development Center (CENPES), not only during initial stages of design, but also during final validations. Moreover, at this stage, each of the processes to be mapped had a UO-BS specialist designated as the focal point, with responsibility to guarantee the quality of the outcome. Due to an active participation of Petrobras’ experts during this phase, it was possible to capture several internal best practices and lessons learned in the To-Be processes design. Also, to include external point of views in this initiative, 3

Rio Oil & Gas Expo and Conference 2012 in addition to the involvement of internal resources, the To-Be design activities were supported by an external benchmarking exercise and had the participation of technical resources from the academia. Another critical step of the planning phase was the definition of the processes modeling strategy. The chosen approach, described in more details below, allowed the implementation team to optimize the experts’ efforts and time, while maintaining an appropriate degree of alignment with corporate requirements for designing processes using ARIS methodology and tool. 2.2.2. Processes Design – Execution The scope of work included more than 30 processes, distributed by the main E&P operational disciplines: 1. Reservoir Surveillance 2. Wells Surveillance 3. Flow Assurance Surveillance 4. Processing and Treatment Systems’ Surveillance 5. Storage & Offloading Systems’ Surveillance 6. Production Losses Treatment, and 7. Maintenance, as shown in Figure 5.

Figure 5. Operational disciplines covered in GIOp-BS scope For each of the processes in scope, the following activities were undertaken: 2.2.1.1. As-Is Processes Design After aligning the opportunities identified in the Conceptual Design with the corporate E&P Value Chain, the effort of mapping the current situation of these processes in UO-BS was initiated. Since UO-BS fields are in early stages of production (greenfield) and considering the need to optimize the use of human resources involved in the modeling, the approach adopted for As-Is mapping was the use of a more simplified format for processes documentation, what was called “light mapping”. In this case, only the processes’ critical information was mapped at that moment. 2.2.1.2. To-Be Processes Design As previously mentioned, to support the E&P To-Be processes design, not only internal points of view were considered, such as best practices and lessons learned from other Operational Unites, support areas and CENPES; but also external perspectives were considered, such as oil and gas industry benchmarking, academy points of view, and partners and suppliers feedbacks. Besides these aspects, GIOp-BS implementation team also considered the innovative potential of new technologies and its impacts in the To-Be processes, for example, new communication and collaboration tools, intelligent monitoring and predictive analytics, and how these new technologies can influence collaboration aspects. In summary, the following drivers and enablers were considered during the To-Be processes design, as described in Tables 1 and 2 below: 4

Rio Oil & Gas Expo and Conference 2012 Table 1. Processes design drivers

Drivers Ensure more secure operations Optimize financial, technological and intellectual resources Avoid duplication of efforts Streamline processes, anticipate difficulties and improve decision making

Table 2. Processes design enablers

Enablers Working in a collaborative and integrated way, eliminating barriers and interfaces that hinder the flow of information and knowledge Decentralizing the decision making processes, making it faster and better Using, in an innovative way, technological solutions already developed internally or by partners, both from industry or academia Standardizing and simplifying work processes

The processes modeling activities were performed by means of numerous multidisciplinary meetings (Figure 6). Several techniques were used throughout the meetings to seek the redesign of processes in accordance to the proposed drivers. At the end of this stage, the processes in scope were deployed in more than 50 sub-processes, redesigned to meet the operational challenges of the UO-BS.

Figure 6. Processes design meetings 2.2.3. Requirements Gathering Based on the flow charts designed for future cases, and having the support of Human Resources and Information Technology and Telecommunications areas, this step dealt with the identification of the minimum requirements for the satisfactory implementation of each new process, completing the concept typically applied in integrated operations initiatives, based on the tripod: Processes - People - Technology / Infrastructure, as shown in figure 7.

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Figure 7. Applying the concept of People - Process - Technology 2.2.3.1. People Since the "People" dimension is generally recognized by the industry as critical to the effective implementation of integrated operations programs, being considered responsible for as much as 70% of the success of such initiatives, a series of activities was planned to meet these demands in GIOp-BS. For each actor impacted by a change in the To-Be flow charts mapped for UO-BS, a series of requirements was gathered, such as: ideal professional profile to run the process, technical and behavioral skills needed, minimum time at function, etc., as shown in Table 3. Furthermore, in order to avoid potential shortage of skilled labor and to contribute to the staff growth plan to meet increasing production in the Santos Basin, an extrapolation exercise was executed to estimate the demand for each type of professional in the future, considering the workload capacity of each actor in the process (example: 01 processing plant surveillance petroleum engineer, working under 24hrs, 7 days a week, for every X units). Table 3: Example of professional profile information gathered for each actor in the To-Be processes Professional Profile Card Roles and responsibilities Minimum professional requirements New job? Minimum time at function Scheme of work Dedication to the process (Part-Time, Full-Time) Sizing the workforce for the process Technical skills Behavioral skills Detailed description of their responsibilities within the process Required training and academic profile to perform the proposed activities in the process Indicate whether the activities relate to an existing job or if you created a new post for this process (Yes / No) Minimum experience to perform the proposed activities in the process Ex: 24hrs shift or Administrative Hours of dedication to the process Quantity of professionals required by Production Unit, Production Asset or Operational Unit Technical expertise required to the position Behavioral expertise required to the position

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Rio Oil & Gas Expo and Conference 2012 2.2.3.2. Technology / Infrastructure Another aspect commonly recognized by companies that have developed digital oil fields or integrated operations initiatives in the last decade, is the concern to avoid that these projects become largely driven by technology. To avoid that the influence of tools become, even if unintentionally, a major driver in the development of To-Be processes, the strategy adopted by the GIOp program, at a corporate level, was to focus exclusively on high level functional and technical requirements associated with the processes, without specifying so early - or hasty - if tool A or B should be used in certain process. As a result of this approach, for each activity mapped in the To-Be flow chart, an associated high level technical and functional requirement was identified. This set of requirements will be used to support the decision process to select the most appropriate technical solution to GIOp, taking into consideration also corporate, strategic, practical and financial aspects. 2.2.4. Technology Prospection Upon completion of technology and infrastructure requirements identification, was then drawn up a preliminary list of potential solutions to meet the demands of the processes. Both internal solutions, existing or under study, and market solutions were considered. This preliminary list will be used to support the process of software selection for the implementation phase of the To-Be processes. The solutions analyzed were classified according to the technological architecture shown in Figure 8.

Figure 8. Schematic view of the technical architecture 2.2.5. Technical and Economic Feasibility Study To finalize the Basic Design phase of GIOp-BS, a study was undertaken with qualitative and quantitative estimates of benefits and costs associated with the To-Be processes, as part of a detailed study of technical and economic feasibility. This study was analyzed by the appropriate review groups to then be taken for consideration and approval by higher stakeholders.

2.3. Change Management In parallel to the processes design and requirements gathering, the GIOp-BS implementation team, in conjunction with the local and corporate HR teams, developed or improved several change management and communication initiatives. Among those activities, it is valid to highlight the impact analysis matrix for the To-Be processes. This analysis was focused on mapping and qualifying the impacts of changes in organizational, technological, procedural and personal dimensions. For each case where changes was identified, an impact degree was established, and was defined a specific mitigation action plan. These actions were incorporated into the Change Management Plan for GIOp-BS project.

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Rio Oil & Gas Expo and Conference 2012 2.4. Pilot Initiatives During scope definition of GIOp-BS Conceptual Design phase, more than 50 opportunities were identified in a group effort with strategic and operational areas of Petrobras E&P. Due to the high complexity of some opportunities, a pilot implementation was deployed in order to test and evaluate potential solutions. Initially, the scope of GIOp-BS pilot was based on Petrobras Digital Oilfield solutions (GeDIg) from E&P-SSE (South-Southeast Exploration and Production area) and also from GeDIg Pilot in Lula field (former Tupi field). Based on those initiatives, a set of processes were selected, considering the ease of implementation and expected benefits. During Basic Design, new processes, based on opportunities identified in Conceptual Design phase, were added to GIOp-BS pilot in order to anticipate potential lessons learned and have the staff trained for the future routine operation. The pilot’s original scope was to implement the concept of Integrated Operations only in Lula field, however, to enhance potential gains on learning curve, all units in Santos Basin Operational Unit (currently structured in three production assets: North, Centre and Gas Handling) were included. 2.4.1. Pilot Objectives The main targets set for the pilot implementation were: - Get as much information as possible, in a small scale scenario, to improve the definition of the definitive project; - Support the processes redesign, according to the GIOp program guidelines; - Anticipate the redesigned processes implementation, aiming a better acceptance for the implementation phase; - Evaluate software and hardware solutions, through proof of concept and functional testing to support elaboration of detailed functional requirements of engineering solutions; - Evaluate different options for collaborative environments, improving knowledge in designing layouts and infrastructure in order to reflect the redesigned processes; - Evaluate main requirements of human resources needed for the program’s implementation, emphasizing the need for the coexistence of the current organization structure and processes driven routine; - Improve Change Management Plan in order to minimize resistance over the new routines and improving the engagement of all workforce. 2.4.2. Pilot Initiatives During the Conceptual and Basic Design, more than 15 cases were evaluated through pilot initiatives. Figure 9 illustrates some of the collaborative environments used to test some of these processes.

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Figure 9. Overview of Pilot initiatives

3. Results
The set of opportunities identified represented a valuable source of improvement in current processes for the E&P area of UO-BS. With the intense collaboration and commitment of Petrobras’ staff and management, for more than 12 months of work, the opportunities identified were detailed in order to design future processes. The proposed changes in the working philosophy of critical E&P areas, such as wells, reservoirs, production, maintenance and exploration, represent an enormous challenge for the implementation stage of GIOp-BS project. These challenges go through several levels, from the challenges associated to change management - to help reducing possible resistance of the impacted workforce - up to those related to infrastructure and the integration of the several systems involved. It is expected, as a result of GIOp-BS, that this initiative will provide Santos Basin Operational Unit with what is most advanced in the oil industry, so that it can contribute safely and efficiently to overcome the challenges that exist in the exploration and production of this new frontier in the pre-salt reservoirs.

4. Acknowledgments
The authors would like to thank Petrobras for the approval on publishing this paper.

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5. References
G. V. MOISES, T. A. ROLIM, J. M. FORMIGLI. “GeDIg: Petrobras Corporate Program for Digital Integrated Field Management” paper SPE 112153. In: 2008 SPE Intelligent Energy Conference and Exhibition, Amsterdam, The Netherlands, Feb. 2008. T. Z. D’ANDREA, T. SANOMYA, C. B. C. LIMA, M. D. M. BASTOS. “Pre-Salt Production Surveillance - The First Journey Across Processes in Santos Basin” paper SPE 150061. In: 2012 SPE Intelligent Energy International, Utrecht, The Netherlands, Mar. 2012 C. B. C. LIMA, C. F. HENZ, J. P. LHOTE, A. KUMAR. “GeDIg Carapeba – A Journey From Integrated Intelligent Field Operation to Asset Value Chain Optimization” paper SPE 112191. In: 2008 SPE Intelligent Energy Conference and Exhibition, Amsterdam, The Netherlands, Feb. 2008. D. DERENZI, P. S. DE SOUZA, S. A. DE OLIVEIRA, M. A. N. HERDEIRO, J. R. ALBERNAZ, A. VALADARES. “A Successful Approach in Integrating People, Process and Technology Inside Collaborative Environments: A Practical View of Challenges and Lessons Learned” paper SPE 123278. In: 2009 SPE Digital Energy Conference & Exhibition, Houston, Texas, USA, Apr. 2009. W. L. VINTURINI, G. B. DE CASTRO, J. H. S. CRESPO, J. R. ALBERNAZ, M. A. S. LOPES, A. VALADARES. “The Fazenda Alegre journey into Intelligent Energy - Lessons learned from a successful holistic approach of people, process and technology aligned to business strategy and results” paper SPE 112160. In: 2008 SPE Intelligent Energy Conference and Exhibition, Amsterdam, The Netherlands, Feb. 2008.

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