SPE-178290-MS

Work Flow for Reservoir Study and Challenges

Okotie Sylvester, Federal University of Petroleum Resources; Stanley Buduka, Energia Limited; Ikporo Bibobra,
Niger Delta University

Copyright 2015, Society of Petroleum Engineers

This paper was prepared for presentation at the Nigeria Annual International Conference and Exhibition held in Lagos, Nigeria, 4 – 6 August 2015.

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
of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect
any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written
consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may
not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.

Abstract
The management of oil and gas reservoirs is a dynamic process that require the cooperation of technical,
operating, and management groups for the success of petroleum assets. It is a team that consists of robust
seismic, geophysics, geology, petrophysical analysis, drilling, logging, geochemistry, reservoir engineer-
ing and reservoir management groups to mitigate the effects of uncertainties in reservoir characterization
and flow processes via collection and analyses of key geologic, reservoir, and performance data through
a logical application of multidisciplinary technologies. Thus, this paper presents a concise reservoir study
workflow and challenges to assist new reservoir simulator users and a check for experts in this field with
a detailed description of the activities involved in a complete reservoir simulation process from initial-
ization, history matching to predictions. This was achieved by carefully considering the step by step
process involved and the data required at each stage of the reservoir model building.

Introduction
Globally, new oil and gas reservoirs are being discovered with the older once depleting. This calls for an
effective reservoir management consisting of operational plans or strategies that is based on the analyses
of current geologic, reservoir, and production data, designed to optimize the development and exploitation
of a reservoir with the goal of achieving the maximum efficient and economic recovery of its hydrocar-
bons. As stated by Ezekwe (2003), the most important ingredient necessary for the creation of sound
reservoir management strategies is the collection and analyses of key geologic, reservoir, and performance
data.
Besides, as part of reservoir management plan, the primary aim of carrying out a study on the reservoir
is to optimize the project value, an asset or a reservoir portfolio. Thus, a clear understanding of the
reservoir is critical to the success of a field development program. This understanding must be developed
through the application of an integrated work flow developed in this study. It covers robust seismic,
geophysics, geology, petrophysical analysis, drilling, logging, geochemistry, reservoir engineering and
reservoir management. Both static and dynamic data should be involved. The integrated reservoir studies
focus on how to integrate these different disciplines for comprehensive analysis, ultimately for optimizing
the processes of exploration, appraisal, development and production incorporating regulatory constraints,
commercial and business issues into a coherent framework (Yan et al, 2012).
2 SPE-178290-MS

Data Quality Control and Quality Assurance

Data QA/QC is usually carried out to ascertain the quality of the data to be used for the project and to
provide preliminary data validation that is to validate the allocated and the flow test data. Hence, before
starting any study, all the available data should be assessed and any data discrepancies and/or deficiencies
should be identified. The data requirements should be consistent with the objectives of the study. It is often
possible to identify some data deficiencies or lack of data quality which will limit the application of any
simulation work. In particular it might be the case that parameters that have a strong influence on the study
outcome, are not available or cannot be measured accurately enough. Although data collection and
selection is clearly an essential part of any simulation study
The QA/QC program applied to each data set, varies with the type of data. It is important to emphasize
that a comprehensive QA/QC program should be devised for each data type under the management of
professionals with experience in the acquisition, collection, and processing of that particular type of data.
The Data can be screened for various anomalies such as the missing sections, depth mismatch, missing
log curves and inconsistencies using computer workstations running with Geographix and Petrel suite
applications and checked for inconsistencies. Also, data QA/QC helps to identify outliers in the observed
and test rate data such as well/field oil production rate (WOPR), gas-oil ratio (WGOR), water cut
(WWCT) etc given by the clients when plotted in Microsoft excel or other computer programs as shown
in figures 1, 2 and 3.

Figure 1—WOPR Test and production data

SPE-178290-MS 3

Figure 2—WGOR Test and production data for XY Reservoir

Figure 3—WWCT Test and production data for XY Reservoir

Normalization of Log Curves

Curve normalization involves the identification and removal of systematic errors from well log data,
solving difficult correlation and seismic modelling problems so that reliable results may be obtained for
reservoir evaluation. Log normalization is relevant to geologic and geophysical characterization activities,
the curves can be normalized to their different ranges for consistencies. This is done so that the logs will
register similar values in rock types. Furthermore, relative permeability and capillary pressure data should
be normalized and cross plots of end point values made against rock properties to find possible
4 SPE-178290-MS

correlations. Laboratory and log measurements of rock properties should be reconciled. Geological,
petrophysical and production data should be analysed respectively.
The objective of log curve normalization is to adjust certain curves in each well, so that they register
similar values in similar rock types. Normalization eliminates the effects of different borehole conditions
(mud weight, hole size, etc.), different logging companies and/or poor well site calibrations.

Challenges/uncertainty in Reservoir Study

The evaluation of oil and gas reservoir is a high risk and challenging venture with several uncertainties
but the degree of uncertainty in the estimates (or the range of outcomes) is expected to decrease as the
amount and quality of geoscience, engineering and production performance data increase. Thus, it is
pertinent to identify these uncertainties such as reservoir structure and upscaling, impact of fault, thief
sand, reservoir connectivity, Pore volume, Permeability, Transmissibility, Kv/Kh ratio, Relative perme-
ability Curves, Aquifer properties, Mobile oil volumes, fluid properties, well inflow parameters, Capillary
pressure, Original fluid contact, the non-uniqueness of accepted history match, lack of available field data
and possible errors in simulators which causes a correct set of data to yield incorrect result.

Aim and Objectives

The aim of this study is to develop a reservoir study workflow to assist new reservoir simulator users with
a detailed description of the activities involved in a complete reservoir simulation process from initial-
ization, history matching to predictions.

Business and technical Objectives:

❖ For fact finding
❖ Production optimization
Which focus are:
To identify why wells at the crest are producing water and those close to the water contact are not
seeing the water. To ascertain if there is faulty cement job.
To optimize reservoir performance by choosing a future development strategy from a range of
defined options.
Model the changes in fluid saturation, water cut, gas-oil ratio and pressure behavior with time
including smooth transition from history to prediction
Make recommendations for recompletion opportunities to increase the production from bypassed or
undrained zones
SPE-178290-MS 5

General reservoir study workflow developed in this paper

Figure 4 —Reservoir study work flow

6 SPE-178290-MS

Seismic review, Geologic model and Reservoir characterization

Geologic modeling is the art of constructing a structural and stratigraphic model of a reservoir from
analyses and interpretations of seismic data, log data, core data, and fluid production data. An accurate
description of reservoir rock, fluid contents, rock fluid systems, fluid description and flow performance
are required to provide sound basis for reservoir engineering studies. Hence, a proper reservoir charac-
terization is important to understand the effects of heterogeneity on reservoir performance due to primary,
secondary, and/or enhanced oil recovery operations to reduce geological uncertainties and define reservoir
spatial variability
Therefore, detailed seismic review, geologic model and a proper reservoir characterization help to
define to define the geometry of reservoirs and the geologic boundaries of the field, define the structural
framework of the field and the individual reservoirs, define the stratigraphy of the field, generate a well
to seismic tie and develop the velocity model of the field, generate the top structural (time and depth) map
of each reservoir, to delineate fault, to pick the horizon of interest, to infer environment of deposition,
reservoir continuity, small to large scale heterogeneity, to estimate STOIIP, to estimate petrophysical
properties, generate grid and properties for dynamic modelling.

PVT Model
PVT analysis is used to characterize the reservoir fluid properties which implies that an accurate reservoir
fluid model is particularly vital in the estimation of hydrocarbon initially in place and evaluation of
various reservoir studies on oil and gas fields. It is pertinent to have realistic PVT models of reservoir fluid
system before proper reservoir management studies can be carried out on the field. PVT are obtain from
laboratory experiment such as Constant Composition Expansion (CCE), Saturation Pressure (Bubble/Dew
point) at reservoir temperature, Differential Liberation (Vaporization), Constant Volume Depletion
(CVD), Separation test and Viscosity measurement. Where detailed PVT laboratory data are not available,
published correlations are used. ECLIPSE can be used to produce black oil PVT tables by fitting an
equation of state to the laboratory PVT experimental data. Also, a tool “REPAT” developed by the author
can be used to matched and generate PVT properties from correlations.

Production Performance Analysis

The production performance analysis is carried out to review the historical and current performance of
wells in the field. The analysis is done to identify production problems, diagnose the possible causes of
the problems, Identification of scope for well repairs, Investigation of opportunities for improving well
productivity and finally make useful recommendations as to actions that can be taken to mitigate the
problem(s) and thereby improve productivity. Typical production problems include high gas-oil ratio
(HGOR), high water cut (HBSW), sand production, low productivity, and unexpected decline in pressure.

Material Balance
Material Balance Equation (MBE) tool is used to interpret and predict reservoir performance. REPAT
developed by author or MBal by Petroleum expert can be used for the material balance analysis. It uses
analytical method, a non-linear regression approach based on reservoir pressure decline against cumula-
tive production. It is aimed at: Estimating the volume of hydrocarbons in place, determining the presence,
type and size of aquifers, encroachment angles, investigating reservoir drive mechanisms, ascertain the
dominant drive mechanism, predicting the reservoir pressure for a given production and/or injection
schedule, history matching of the past performances of the reservoir and exploiting other reservoir
analysis issues possible with the material balance approach.
SPE-178290-MS 7

Figure 5—History match plot with REPAT

Figure 6 —Aquifer plot with REPAT

History matching
The process of adjusting the variables in a reservoir simulation model to match observations of rates,
pressure, saturations, and other variables for individual wells or field is called history matching. Thus,
history matching of geologically complex reservoirs are challenging aspects for efficient reservoir
management which is normally the most time-consuming phase of a simulation study that every dynamic
reservoir engineer will want to avoid if possible. The foremost reason is the high level of uncertainty that
exists in the reservoir models because of the limited, sparse, and multiscaled reservoir data available
(Bustamante, 2005). It helps to identify the weaknesses in the available data, keeps the model up to data
and consistent, improves the reservoir description and forms the basis for future performance predictions.
It is pertinent that a sensitivity analysis of the key parameters that will impact the history matching be
identify prior to history match process because the quantification of reservoir simulation mismatch
8 SPE-178290-MS

enables the assessment of the uncertainty associated with the reservoir model performance prediction. Bu
and Damsieth (1996) stated that the uncertainties associated with individual reservoir characteristics such
as: hydrocarbon originally in place, aquifer size, sand continuity, shale continuity, permeability, Upscal-
ing, mathematical model, and external factors (e.g. pump lifetime), all add up to give a resultant total
uncertainty associated with reservoir performance prediction.

Dynamic Volume Initialization

The Dynamic volume initialization of a Field is carried out by inputting all the Data needed in the dynamic
Model to enable it calculate the fluids in Place (HCIIP) and compare with value from static model of the
reservoir at the beginning of simulation. These data should be characterized in a format to be used by the
simulator. The characterization included the selection of a grid and the distribution of reservoir properties
in the grid. The model initialization method used is equilibration which depended on the definition of the
grid, and the point at which fluid contacts were established on the grid and fluid volumes calculated for
each of the reservoirs. Available data Generated prior to initialization include: Static Model (Grid, k, Ø,
NTG, and Faults), PVT data, SCAL, equilibration data such as fluid contacts and Static BHP Pressure
Data.

Reservoir Performance Expected outcomes

The observed results from the reservoir performance, which includes well production rates of oil, water
and gas, the field average pressure, water cut, gas-oil ratio, the individual well pressures and well
productivities etc. over the simulated years will inform our decision of possible developmental scenario
and serves as a monitoring tool for production forecast. Thus, the expected outcomes are:
Define in-place volumes and reserves
Infer drive mechanism
Field/reservoir management tool for long term monitoring of production forecasts and evaluate
optimized development scenarios.

Conclusions
Based on the available data and the identified study objectives a decision should be made whether the
study objectives require and/or justify reservoir simulation. Here it should be borne in mind that the
quality of any simulation results will be limited by the availability, accuracy and quality of any input data.
To effectively and efficiently apply the technology of reservoir simulation to develop reservoir
management strategies, optimize reservoir development, and improve hydrocarbon recovery, some of
these questions can help determine the objectives and scope of the study. These are:
What are the expected hydrocarbon recoveries under current and alternative reservoir management
strategies? Can the expected hydrocarbon recovery be improved? Is the reservoir a good candidate for
pressure maintenance? Should gas or water injection be used for pressure maintenance? If so, what type
of flood pattern to implement and when is the proper time to initiate the secondary recovery process? What
types of enhanced oil recovery processes will be suitable for the reservoir? What is the expected
incremental recovery and profitability of the selected enhanced oil recovery process? How is the reservoir
performing under current operating strategy? Are they indications from current performance data of future
problems? How can those problems be avoided or alleviated by modifying current practices and/or
management strategies?.
SPE-178290-MS 9

Some of the software requirement in the course of reservoir study but not
limited

Software Application

Petrel Static model (Grid)

Geographix Petrophysical Analysis
PVTi/PVTP Fluid modelling
REPAT or MBAL General material balance
OFM Management & analysis of production data
Saphir Pressure transient analysis
Pansystem Welltest design & Pressure transient analysis
Perform Well bore nodal analysis
Prosper Production and Systems performance analysis
Emeraude Production logging analysis
Crystal ball Forecasting & risk analysis
Eclipse Reservoir Simulation

References
Bu, T. and Damsieth, E., Errors and Uncertainties in Reservoir Performance Predictions, SPE 30604,
SPE Formation Evaluation (Sept., 1996)
Bustamante, D.S., Keller, D.R. and Monson, G.D., Understanding Reservoir Performance and Un-
certainty using a Multiple History Matching Process, paper SPE 95401, presented at Annual
Technical Conference and Exhibition (Oct., 2005)
Ezekwe, J.N.: “Applied Reservoir Management Principles with Case Histories,” paper SPE 84148
presented at the SPE Annual Technical Conference and Exhibition, Denver, Colorado, October
5– 8, 2003
Khalid Aziz, Hamdi A. Tchelepi (2005) “Dynamic reservoir study” in Encyclopaedia of hydrocarbons
by Pier Federico Barnaba, Giovanni Brighenti, Renzo Mazzei (2005). Volume 1, Exploration,
Production and Transport
Yan Y.S, Ma T., Wang T.C. & Xu Z.K (2012) “Difficulties and Strategies of Integrated Reservoir
Studies” 74th EAGE Conference & Exhibition incorporating SPE EUROPEC Copenhagen,
Denmark