Professional Documents
Culture Documents
Design
Roland Hamp
Wednesday 7 September 2018
Key themes
• Drilling versus designing wells
• Creating the value proposition
• Optimising risk and value
• ‘Challenge in’ approach & testing limits
• Benchmarking
• Multi‐disciplinary approach
• Communicating clearly
Workflow and case study discussion rather
than engineering detail.
Cost, Schedule, Quality ‐ wells
Investor’s dream: Lowest cost development for reliable operations,
good recovery and outstanding HSEQ, delivered on time – simple!
The Challenge:
• Reliability
Quality • HSEQ Risk Cost
• Initial rates
• Reserves
• No surprises!
Attractive
Project?
Construct‐
Can we construct it, safely?
ability
Can we operate it reliably? Operability
Maintain‐
Can we maintain and repair it?
ability
Drilling versus Designing Wells
Comprehensive Good project
Concept screening execution
Robust technical Poor project
understanding execution
Good project
Discovery! execution
Poor project
execution
Most value is added here
• Good Concept selection is built on solid technical foundation
• Concept screening must be wide ranging and systematic/quantified
• Management of change post FID must be independently approved
• Front End Loading (FEL) correlates strongly with project success
The opportunity – original FDP base case
• 3 faults blocks, sealing faults?
oil a • 10‐15m thick & uniform quality
b
c • 10 – 20 MMstb in place
• Deviated production wells
• Sand production risk
• Deviated water injection wells
gas • Injection under fracture conditions
• Large, mobile gas cap
• Water injection sweep uncertainty
Field Development Plan base case
Design Aspect Base Case
Well type deviated
Well numbers 1 P, 1 WI
Sand control none
Artificial lift Gas lift
Tubing size 4.12”
Well rate 3 – 5,000 b/d
Blocks developed 1
Base Case
Pressure support Water injection
Recovery mechanism Water sweep
Recovery 2 – 3 MMstb
• Uneconomic well proposal
Capex $300 million
• Low volumes
Metallurgy CRA • Low rates
Workovers none • High costs
Threats Gas, water, sand • Multiple unmitigated risks
Value improvement workshop ‐ format
• Multidisciplinary team
oil a • Increase recovery volumes
b
c • Increase well rates
• Reduce Capex
• Mitigate risks – pore pressure
• Look for upside value
gas
Value improvement workshop ‐ result
Design Aspect Base Case New Case
Well type deviated horizontal • 1 day workshop
Well numbers 1 P, 1 WI 1 P, 1 WI • Geophysicist
Sand control none OH gravel pack • Geologist
Artificial lift Gas lift Gas lift • Reservoir engineer
Tubing size 4.12” 5.1/2” • Production technologist
Well rate 3 – 5,000 b/d 5 – 10,000 b/d
• Completion engineer
Blocks developed 1 3 + prospect?
• Drilling engineers
Pressure support Water injection Increased WI
• Operations engineer
Recovery mechanism Water sweep Improved sweep
Recovery 2 – 3 MMstb 5 – 10 MMstb • Economist
• Multidisciplinary team
• Recovery volumes doubled
oil a
b • Well rates doubled
c
• Improved Capex efficiency
• Reduced risks – 4D seismic
• Innovative design – WI
gas • Well trajectories challenge
• ‘Challenge in’ approach, eg CRAs
• Upside – exploration target east
Reverse engineer to achieve investment hurdle
?
VIR = 0.4 VIR = 0.3 VIR = 0.2
Exploration target upside
Reduce or
Acceptable defer costs
development
concept
NPV
Increase or VIR = 0.1
accelerate
recovery
Original, unacceptable
development concept
PV Capex
Increase or accelerate recovery: Reduce or defer costs:
• Horizontal wells • Batch drilling
• Multilateral wells • WH/WT boat installed
• Smart wells • Field/well life – 20 years?
• IOR • Well intervention strategy
Coarse screening, detailed planning
Recovery
Efficiency
? Initial
Rate
?
Similar developments Similar wells
Value
coarse detailed
Practical well design:
• Understand the reservoir & uncertainties
• Understand what drives value:
– Volumes, rates, costs, threats
• Understand well design boundaries
• Push boundaries & team – what’s possible?
• Mitigate risks and add opportunities
• Benchmark solutions – realistic, proven?
• Clearly present options to decision makers
What’s important
Your well proposal will need
Life cycle to address all these areas.
Is it profitable?
Value
Construct‐
Can we construct it, safely?
ability
Can we operate it reliably? Operability
Maintain‐
Can we maintain and repair it?
ability