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SPE-185428-MS Optimizing Cost and Effectiveness of Well Interventions: An Holistic Approach
SPE-185428-MS Optimizing Cost and Effectiveness of Well Interventions: An Holistic Approach
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Approach
Sonali Gosain, Mansi Dhiman, Manish Dutt Kothiyal, Akhilesh Upadhyaya, Shailendra Jetley, Sachin Jain,
Akanksha Jain, Nilay Patel, and Paul Hammond, Cairn India Limited
This paper was prepared for presentation at the SPE Oil and Gas India Conference and Exhibition held in Mumbai, India, 4–6 April 2017.
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
Cairn India Limited operates over 600 wells in the Barmer basin in Rajasthan with over 30 well intervention
(rig and rigless) units deployed on an average to perform over 5000 interventions per year. Maintaining the
quality of interventions and analyzing the performance of such a scale of operations is a major challenge.
This paper describes "An holistic approach" for evaluating well intervention campaigns, reviewing
candidate selection, intervention techniques and technologies utilizing an intensive data warehouse and the
techno-economical tool, "Scorpion Plot" to optimize intervention costs and rewards.
The performance of all Well & Reservoir Management (WRM) activities are analyzed in terms of cost
and associated gain. The data gathered is categorized into four types namely Well Surveillance, Production
Enhancement, Restoration, Well Integrity and Support. The expenditure on non-oil and gas gain generating
interventions (Well Surveillance, Restoration, Well Integrity & Support) plotted on cumulative cost basis
gave an overall idea of the health of the well stock and understanding of the value of information from data
gathering. The Production Enhancement activities, sorted in increasing order of cost per barrel gained were
plotted on a cumulative cost vs cumulative gain curve termed as "Scorpion Plot" because the shape always
largely resembles a "scorpion tail" with low cost-high gain jobs lying in the bottom left part of curve and
high cost and negative value interventions forming the "tail" of the scorpion to the top right. The analysis
of the type of jobs falling in the different tranches of the plot on the basis of $ spent per barrel gained, helps
in identifying the areas for optimizing the process of candidate selection and job execution.
The objective is to remove negative gain and reduce high cost low gain activities (the tail of the
"scorpion plot") and shift the curve towards the bottom left to improve oil realization while reducing cost.
After Action Reviews are carried out for all the negative and lower value activities and the lessons learnt
are fed back into the intervention management system to enhance future intervention campaign results.
Production enhancement activities such as ‘Well Stimulation’ positioned in the negative value group were
further analyzed based on the selection criteria, technique of stimulation, chemical recipes/volumes were
benchmarked against the high value interventions. Case studies showing how the analysis helped in better
candidate selection and best technique for interventions are discussed.
This paper also describes how the process of candidate selection, cost, resource allocation and job impact
assessment is automated ensuring engineering focus on job planning and after action review.
2 SPE-185428-MS
Introduction
Rajasthan block is situated in NNW-SSE oriented rift Barmer basin consisting of major discoveries namely
Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati etc. as shown in Figure 1 below. This block being
one of the largest onshore fields in India contributes to ~23% of the domestic oil production. It comprises of
over 600 wells categorized into heavy, light and horizontal producers, water injectors and water disposals
wells completed as open hole screened wells, cased and perforated wells. The oil is viscous and waxy with an
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API gravity of ~30° which possess a flow assurance challenge. The wells are on self-flow or supported with
variety of artificial lift systems such as Jet Pump, ESP in Mangala & Aishwariya; PCP, SRP in Bhagyam and
Saraswati. Cairn India Ltd. has one of the world's largest EOR (Enhanced Oil Recovery) project with full-
fledged polymer flooding in Mangala field and ongoing pilot in Bhagyam and Aishwariya fields located in
the northern part of the block. Raageshwari Deep gas field located 80km to the south within the block has
a significant gas resource potential and is under development.
The effort is to reduce the decline of the field and maximize the plateau production by optimizing and
restoring production. Operator performs a huge quantum of operations in these wells with an average of
5000 interventions in a year deploying workover rigs, coil tubing, electric, slickline, high rate pumping and
surface well testing spreads. The variety of operations range from:
• Production enhancement activities: stimulation to remove damage, adding perforations, jet pump
size optimization, zone change over & zonal isolation for enhanced sweep;
• Data acquisition jobs such as production and reservoir saturation logging, temperature and pressure
surveys;
• Restoration activities: replacement of failed artificial lift systems, restoring tubing and packer
integrity
SPE-185428-MS 3
Problem Statement
Though the cost of servicing and restoring an existing well is much lower than an in-fill drilling operation,
still the selection of the well intervention techniques and appropriate technologies have significant cost
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implications. Maintaining and improving the quality of such large scale of operations (shown in figure 2)
with an underlying focus on minimizing total expenditure, utilizing current resources to their maximum
potential and management of well interventions in an holistic manner has become ever more important.
This paper aims at describing an overall approach that has been implemented to demonstrate performance
monitoring of well interventions with an intention of improving oil realization while reducing cost for well
intervention activities i.e. more oil in the tank for each dollar invested.
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Figure 3—Linear Execution Focused Approach
The closed loop planning and learning focused approach (shown in Figure 4) operates in a continuous
feedback loop. Production Optimization team based on the underperforming wells history create an
opportunity register. Separate registers are maintained by individual asset teams. This register with a 90
day plan is continuously rejuvenated with new opportunities as old opportunities are implemented after
weekly discussions with cross-functional teams. The process of maturation of these opportunities involves
discussion on expected production enhancement, the cost of undertaking the associated activities and
business priority. As and when the activities reach 100% maturity, they are shared with the Petroleum
Engineering (PE) team for further planning & execution (Process shown in Figure 5 below). Accordingly,
Petroleum Engineering team at office along with the implementation team at field create an activity register
for the next 30 days taking into consideration availability of resources/equipment and other factors such
as proximity of locations etc. A plan is created for monthly activities and the 7-day look ahead is frozen.
Changes in the 7 day look ahead are allowed only in exceptional circumstances – this enables the execution
teams to plan ahead for all activities and ensure optimal utilization of all equipment. Consequently the
average utilization for all field equipment stands at >95% across the organization.
SPE-185428-MS 5
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Figure 4—Closed Loop Planning and Learning Focused Approach
AARs (example shown in Figure 6 below) capture reasons for deviations faced in executing an activity or
when desired outcomes are not achieved. AAR serves as a tool for sharing the lessons learnt/ incorporating
them in work programs such that the same action can be repeated (if beneficial) or avoided (if detrimental)
in the future interventions. AARs are compulsorily conducted for cases where:
1. Actual Cost incurred is less/more than 20% of Anticipated Cost.
2. Actual Gain in production is less/more than the Anticipated Gain.
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3. Major Deviation in Planned Activity is observed.
The AARs are categorized into buckets based on the cause of deviation (e.g. delay due to simultaneous
operations, delay due to policy compliance, waiting on equipment, inefficient planning etc.). Upon
categorization the economic leakages resulting from deviations are calculated and efforts are channelized
in reducing them. AAR hence acts as an effective tool for continuous performance and cost improvement.
Well Surveillance. These activities are aimed at gathering well information. The expenditure on
surveillance activity does not directly yield oil and gas gain. These activity vary from pressure, temperature
surveys to production and saturation logging. These activities are aligned to overall reservoir monitoring
plan. The surveillance activities are optimized to ensure sufficient data is available for analysis and decision
making.
Production Enhancement. These activities are aimed at maintaining and enhancing the production of
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wells. Enhancement activities have significant cost involved and hence the incremental production achieved
has to be evaluated against the expenditure involved.
Restoration. These activities are aimed at restoring a well back to its normal expected potential. These
activities include replacing failed artificial lift systems, fishing of broken PCP rods etc.
Well Integrity. These activities are aimed at restoring the failed/ faulty barrier components of a well. These
activities include changing or greasing of Xmas tree valves, tubing, packing & cement integrity checks etc.
Support. These activities do not have direct revenue in terms of incremental production instead serve in
supporting the routine production activities.
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Figure 7—Scorpion Plot with regions of profitability identified
Operator puts efforts in eliminating the low & negative value activities and enhancing the border line
medium value activities. Optimizing and improving the well intervention activities lead to flattening of the
scorpion with the curve moving to bottom right indicating decreased $/bbl.
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Figure 8—Scorpion Plot FY 16-17
With decline in oil prices, reduction in well interventions OPEX activities and consequent reduction in
operating units was observed. Initiatives were undertaken to optimize spends and maximize value of the
interventions in terms of gains in OPEX cost / barrel. An overall study of total expenditure spent indicated
how much part of the petroleum engineering budget was spent on which activity type (shown below in
figure 9 & 10). Efforts were applied in optimizing the high value bucket of interventions.
The learnings from FY15-16 were mainly incorporated into next year's operations and resulted in
significant efficiency improvements. Delivering well intervention activities and projects efficiently and with
focus on cost management resulted in 46% decrease in spent on Well services activities (Figure 11 below
shows the change in Scorpion plot profile from FY 15-16 to FY 16-17).
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Figure 11—Change in Well Intervention Profile from FY 15-16 to FY 16-17
Scorpion plot was used as technical analysis tool for analyzing the interventions that did not yield
successful result. It was observed that majority part of the negative and failed jobs consisted of WBCO/
Stimulation treatments. It was imperative to dig out the probable cause of inefficiency due to the reoccurring
failure of these treatments and high cost involvement. Ineffective candidates were picked from the plot
for further evaluation and detailed analysis was conducted (Case Study shown below is an example of
evaluating two such ineffective candidate wells).
Case Study
Introduction
The outliers picked up from Scorpion Plot analysis majorly consisted of underperforming Stimulation
treatments in polymer injector wells. Further analysis on these wells showed that the loss in injectivity
in these injectors poses a major concern. Strategic steps are being taken to maintain conformance and
injectivity of these wells by conducting periodic treatments. Although most wells show good initial
injectivity, cluster of wells followed a decreasing injectivity trend. Various treatments were applied
including acid treatments, re-perforation followed by flow backs, nitrogen assisted flow backs, and jet pump
assisted flow back, surfactant treatments etc. These wells showed improved injectivity index immediately
after the jobs but the sustenance was not for more than ~5 days on an average. Any correlation to geological
setting could not be established by plotting the candidates on layer wise pattern maps.
SPE-185428-MS 11
Further analysis was done on the basis of the parameters mentioned in Table 1 below:
Parameters Considered
Type of treatment
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• Acid Stimulation
• N2 assisted flowback
• JP assisted flowback
Treatment
• Chemicals Pumped
• Chemical Source
• Recipe details
Methodology
• Tubing pickling
GPF of treatment
Chemical QA/QC
Well 1
Well 1 was a heavy pre-producer drilled and completed in XYZ sands. Well was converted to polymer
injector in July, 2015 to complete the pattern with an initial injectivity ~4. The stimulation was conducted
on this well in Sept, 2015. Treatment details are listed below in the table.
12 SPE-185428-MS
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Summary for Well 1. Acid Stimulations have shown gain in II but JP assisted flow back has shown
significant gains (this can be clearly seen in Figure 12). Flow backs should be preferred for future treatments
in this well. Hall Plot (Figure 13) also qualitatively indicates plugging due to increase in OIW and TSS
parameters of injection water. However a significant change in slope post flow back is observed.
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Figure 13—Hall Plot with Water quality trend
Well 2
Well 2 is a heavy injector drilled and completed in XYZ sands and polymer injection was started in Sept,
2015 with an initial injectivity ~2.5. Treatment details are listed below in the table:
Summary for Well 2. Acid stimulations have proved to be useful in maintaining the II of well (Figure
14). The first two stimulations using recipe of ABC vendor resulted in improved performance. However,
the third stimulation done using recipe of XYZ vendor did not yield expected results. Similar results were
observed in few other candidates.
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Figure 14—II* concentration plot
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As many of the stimulation jobs required brines to be non-damaging it was a practice to use 3% or higher
potassium chloride brine. After reviewing the data for these jobs it was observed that a lower concentration
of brine can be used for the same application. A study1 was initiated with core flood tests on representative
formation core plugs. This data indicated that the concentration of potassium chloride could be reduced
to 2% without any impairment to the formations. The change was initiated and showed no influence on
formation permeability. This change saved the company 33% in potassium chloride brine purchases.
Table 4—Jet Pump Change Out Before & After ESI Treatments
Well No. No. of Jet Pump change out No. of Jet Pump change out
before the ESI Treatmetnt After the ESI Treatment
Well # 1 3 1
Well # 2 4 1
Well # 3 4 1
Well # 4 2 1
Well # 5 3 1
Well # 6 2 0
decided to test the surfactant in these poorly responding wells with a view to dispersing any oil congealed
solids. As the surfactant had already been purchased, the cost of these jobs was based on manpower and
pumping only. The wells responded well to the surfactant treatment and oil production was greatly increased,
this resulted in a much improved position on the scorpion plot.
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The most intensive task is gathering and maintaining the data for analysis. It involves several man hours and
the engineer spends most time in accumulating data manually on excel files leaving little room for actual
research, job planning and after action reviews. To address this problem, all individual steps in the cycle:
from actualizing an opportunity to the review of this activity post execution and incorporating the lessons
learnt while automatically collecting performance data were brought onto a single proprietary platform,
enabling much faster response and eliminating inefficiencies. The entire well intervention planning which
was earlier managed through excel sheets and shared folders were moved to the platform allowing multitude
of benefits.
Optimization Engineer inputs prospect in the portal by defining the objective, activity type, estimated
oil gain and priority at which the activity has to be delivered. A complete list of all such opportunities is
reflected live on the desktop of a planning engineer, who can then start scheduling the activities for execution
from a central database, based on either the oil gain, or the business requirement in some cases. Once the
opportunity is scheduled in the look ahead, engineer drafts the work program with estimated time required
in completing the job and system generated best estimated planned cost which will be incurred in delivering
the job. Post approval from respective heads the work is ready for excecution. Once the job is executed in
field, the coordinator closes the said program in the system by entering the post job parameters; including
the date of execution, actual job days and cost, summary of actual events.
The system detects if any job falls under AAR category by calculating variance between planned and
actual numbers and demands the person closing the program to fill in details of deviation, lessons learnt
and corrective actions to avoid delay. The AAR is generated and saved in a separate tab for further review
and analysis.
The opportunity is still open in the system and goes back to the optimization engineer who created it for
closing. The engineer inputs the actual production increment resulted from the job and if desired results were
met. After completing the end to end process, the data is stored in the system for further utility at a buttons
click: Planned versus actual timelines for various jobs, utilization percentage of the equipment available,
planned monthly intervention activities and associated production gains, actual realization of gains from
the jobs executed in a particular period etc.
The entire automation has resulted in a very quick turnaround time to address an under-performing well,
standardization of data across the entire petroleum engineering department and generation of additional data
that helps in better planning, prioritization of activities and gathering lessons learnt at the source. It was
observed that 20-40% of individual time which was being spent in data gathering was now being channelized
in productive post job analysis with more standardized data available at a single platform.
Future Work
Data gathering and assessment through scorpion plots will continue. The data will indicate where both
short and long term technical efforts are required at minimal cost. The plotting exercise is being automated
through the Well Intervention Planning & Execution Portal. By way of future steps, plans are afoot to create
a Cross-functional Surveillance team with the objective of looking at each opportunity in greater detail.
The surveillance team will have designated members from Production Optimization, Reservoir modeling,
Artificial lift, Well servicing, Workover, Stimulation and Production chemistry teams. Further enhancement
to data acquisition will be through the use of a web based flow assurance analytics program. This latter
SPE-185428-MS 17
will allow engineers to assess the data at a higher level and reduce time in gathering the information whilst
improving time to implement changes and asses their effect.
Acknowledgment
We would like to wish so thank the Petroleum Engineering team for providing constant inputs for this
work to be successful. Also, hereby acknowledge the efforts of the other entire technical services; well and
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reservoir management team leaders, production technology team, production optimization team, contractors
vendors and other service providers whose efforts have resulted in improving and maintaining the quality
of well interventions.
Nomenclature
AAR = After Action Review
API = American Petroleum Institute
BOPD = Barrels of Oil per Day
BPM = Barrels per Minute
CTU = Coil Tubing Unit
ELN = Eline
ESI = Encapsulated Scale Inhibitor
ESP = Electrical Submersible Pump
FY = Financial Year
GPF = Gallons per Foot
HIW = Heated Injection Water
HRP = High Rate Pump
JP = Jet Pump
OIW = Oil in Water
OPEX = Operating Expenditure
PCP = Progressive Cavity Pump
PI = Productivity Index
PPM = Parts Per Million
QA/QC = Quality Assurance and Control
SLK = Slickline
SRP = Sucker Rod Pump
SWT = Surface Well Test
THP = Tubing Head Pressure
TSS = Total Suspended Solids
WBCO = Well Bore Clean-Out
WRM = Well & Reservoir Management
References
1. Core Laboratories Advance Core Analysis study report "Effect of stimulation chemicals on core
study report" 131173 Cairn India Aish-017 Report
2. Akanksha Jain, Nilay Patel and Paul Hammonds "Field Application Of Encapsulated Scale
Inhibitor Treatment To Improve Uptime Of Jet Pumps In Low Producing Wells", Paper A-1752
Petrotech 2016.