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EVOLUTION OF

RESERVOIR MANAGEMENT TECHNIQUES

From Independent Methods


to an Integrated Methodology

Impact on Petroleum Engineering Curriculum, Graduate


Teaching and Competitive Advantage of Oil Companies

SPE 39713, Kuala Lumpur, Malaysia, 23–24 March 1998.

Alain C. Gringarten
Imperial College, London
CENTRE FOR PETROLEUM STUDIES Imperial College, London
CONTENT

„ RESERVOIR MANAGEMENT PROCESS


• DEFINITION
• OBJECTIVES
• METHODOLOGY
• IMPLEMENTATION

„ IMPACT ON COMPETITIVE ADVANTAGE

„ PETROLEUM ENGINEERING CURRICULUM

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MANAGEMENT

„ APPLICATION OF AVAILABLE TECHNOLOGY AND


KNOWLEDGE

„ TO A RESERVOIR SYSTEM

„ WITHIN A GIVEN MANAGEMENT ENVIRONMENT

„ IN ORDER TO CONTROL OPERATIONS AND MAXIMISE


ECONOMIC RECOVERY

CENTRE FOR PETROLEUM STUDIES Imperial College, London


OBJECTIVES
OF RESERVOIR MANAGEMENT

„ DECREASE RISK

„ INCREASE OIL AND GAS PRODUCTION

„ INCREASE OIL AND GAS RESERVES

„ MINIMISE CAPITAL EXPENDITURES

„ MINIMISE OPERATING COSTS

„ MAXIMISE RECOVERY

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MANAGEMENT TOOL:
MODELLING THE RESERVOIR BEHAVIOUR TO MAKE DECISIONS

PREDICT
MODEL PRODUCTION
ACQUIRE RESERVOIR &
DATA BEHAVIOUR CALCULATE
RESERVES

CENTRE FOR PETROLEUM STUDIES Imperial College, London


THE MODELLING PROCESS

IDENTIFICATION OF A RESERVOIR MODEL


1
RESERVOIR CHARACTERISATION (INVERSE PROBLEM)

CALCULATION OF THE RESERVOIR MODEL


2
BEHAVIOUR UPSCALING AND SIMULATION

MATCHING OF RESERVOIR SYSTEM PAST


3
PERFORMANCE HISTORY MATCHING (DIRECT PROBLEM)

PREDICTION OF RESERVOIR SYSTEM FUTURE


4
PERFORMANCE (DIRECT PROBLEM)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MANAGEMENT PROCESS
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers Production
Pressure, Surface Rates,
Survey Downhole Rates
data
Drilling

Production Well Test


Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Tracer
INTERPRETATION Model Model Model Model Model Model
Logging Model Model
MODELS Model

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


THE RESERVOIR MANAGEMENT PROCESS

DATA

INFORMATION
RESERVOIR
CHARACTERISATION

PERFORMANCE
PREDICTION
IMPLEMENTATION

OF WELL

KNOWLEDGE
PREDICTION OF
RESERVOIR
PERFORMANCE

FIELD DEVELOPMENT

WISDOM
PLAN

RESERVOIR MANAGEMENT DECISIONS

© 1997 by Alain C. Gringarten


CENTRE FOR PETROLEUM STUDIES Imperial College, London
RESERVOIR CHARACTERISATION
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers Production
Pressure, Surface Rates,
Survey Downhole Rates
data
Drilling

Production Well Test


Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Tracer
INTERPRETATION Model Model Model Model Model Model
Logging Model Model
MODELS Model

Well
INTEGRATION Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR CHARACTERISATION

„ INTEPRETATION OF DATA

>> STATIC INTERPRETATION MODELS ( DESCRIPTION)


GEOPHYSICS, GEOLOGY

GEOCHEMISTRY
PETROPHYSICS

>> DYNAMIC INTERPRETATION MODELS ( BEHAVIOUR)


GEOMECHANICS

WELL TESTS, TRACERS

FLOWMETRE SURVEYS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Data type 1 Data type 3 Data type 3

Identification Identification Identification

Consistency NO Consistency NO Consistency NO


Verification Verification Verification

YES YES YES

Interpretation Interpretation Interpretation


Model for Model for Model for
Data Type 1 Data Type 2 Data Type 3

CENTRE FOR PETROLEUM STUDIES Imperial College, London


INTERPRETATION MODELS

Petrophysical 2 media
10 layers Well test
Data Data

1
Petrophysical
Well test
Model Model
2

Production Flow rate


Logging
Tracer
Tracer Data
Model
Data

Depth
≤10 permeabilities
Concentration

Production
Logging
Model

Identification of
Time producing layers

CENTRE FOR PETROLEUM STUDIES Imperial College, London


INTEGRATION OF INTERPRETATION MODELS Fluid
Geomechanical
Data Data

Geomechanical Fluid Production


Petrophysical Model Model Logging
Data
Data

Petrophysical Production
Logging
Model Model

RESERVOIR
RESERVOIR
Geochemical
Data Geochemical
Model
MODEL
MODEL Tracer
Tracer
Data
Model

Geophysical Well test


Model Model

Geological
Model

Geophysical Well test


Data Data
Geological
CENTRE FOR PETROLEUM STUDIES Data Imperial College, London
INTEGRATION OF INTERPRETATION MODELS

„ DETERMINISTIC TECHNIQUES
„ STOCHASTIC TECHNIQUES
>> INTERPOLATION BETWEEN SPARSE DATA (WELLS) AND
EXTRAPOLATION

>> CORRELATION AND ORDERING OF INFORMATION

>> INTEGRATION OF INFORMATION (CONDITIONING)


FROM DIFFERENT DATA SOURCES
WITH DIFFERENT LEVELS OF RELIABILITY

>> GENERATION OF MULTIPLE, EQUIPROBABLE REALISATIONS OF THE


RESERVOIR (PARAMETER DISTRIBUTIONS)

>> QUANTIFICATION OF UNCERTAINTIES

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MODEL VERIFICATION

„ Once the reservoir model is constructed, one must


verify that this reservoir model is consistent with
all available information and interpretation models.

This means that the reservoir model must reproduce


all data acquired:

Î the seismic,
Î logs, etc...,
Î well tests.

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Data type 1 Data type 3 Data type 3

Identification Identification Identification

Consistency NO Consistency NO Consistency NO


Verification Verification Verification

YES YES YES

Interpretation Interpretation Interpretation


Model for Model for Model for
Data Type 1 Data Type 2 Data Type 3

Integration into Reservoir Model

Simulate Data Type 1 Simulate Data Type 2 Simulate Data Type 3

Match Match NO
Match NO
NO
Data Type Data Type Data Type
1 2 3

YES YES YES


NO

RESERVOIR MODEL
CENTRE FOR PETROLEUM STUDIES Imperial College, London
VERIFICATION OF RESERVOIR MODEL FLOW BEHAVIOUR
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers
Production
Survey Pressure, Surface Rates,
data
Drilling Downhole Rates

Production
INTERPRETATION Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Well Test Tracer
Logging
Model Model Model Model Model Model Model Model Model
MODELS

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MODEL FLOW BEHAVIOUR
‰ USUALLY APPROXIMATED WITH NUMERICAL SIMULATOR

‰ DIFFERENT FLOW SIMULATORS MAY BE REQUIRED FOR


DIFFERENT FLOW DATA
ƒ COMPLEXITY OF SIMULATOR FUNCTION OF PERFORMANCE TO BE
SIMULATED (Black Oil, Compositional, Thermal, Chemical)

ƒ WELL TEST DATA REQUIRE HIGH RESOLUTION NEAR WELLS

ƒ GRIDDING FOR EXISTING NUMERICAL SIMULATORS COARSER THAN FOR


RESERVOIR MODEL ( UPSCALING REQUIRED)

ƒ SIMULATION OF VERY LARGE RESERVOIRS OR OF LOCAL


HETEROGENEITIES REQUIRES:
ƒSeveral hundred thousand cells, or
ƒNew mathematical formulations (Adaptive gridding, Streamline
simulators,....)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR MODEL
FLOW BEHAVIOUR VERIFICATION

‰ RESERVOIR MODEL FLOW BEHAVIOUR CONSISTENCY


IS VERIFIED BY COMPARING:

ƒ OBSERVED DATA FROM WELLS (GOR, WOR,...), and

ƒ CORRESPONDING RESPONSES FROM NUMERICAL


SIMULATOR (HISTORY MATCHING)

‰ POSSIBILITY TO MATCH SATURATION FRONT


LOCATIONS BETWEEN WELLS OBTAINED FROM
REPEATED 3-D SEISMIC SURVEYS (RESERVOIR
MONITORING)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


HISTORY MATCHING
„ MATCH BETWEEN DATA AND MODEL CALCULATED
BEHAVIOR CAN BE REFINED BY ADJUSTING RESERVOIR
MODEL PARAMETERS WITHIN LIMITS CONTROLED BY
CONDITIONING

„ ADJUSTMENT CAN BE MADE EASIER AND FASTER WITH


STATISTICAL OPTIMISATION METHODS (ADAPTIVE
HISTORY MATCHING) AND EXPERT SYSTEMS

„ LACK OF SATISFACTORY MATCH WITHIN LIMITS


CONTROLED BY CONDITIONING REQUIRES MODIFYING THE
RESERVOIR MODEL ( RESERVOIR CHARACTERISATION)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


CHARACTERISATION: AN ITERATIVE PROCESS
Interpretation Models

Integration into Reservoir Model

Verify
Reservoir Model NO
(Synthetic seismograms,
logs, well tests,
production...)

YES

RESERVOIR MODEL

YES NO
Another
END
Model?
CENTRE FOR PETROLEUM STUDIES Imperial College, London
PRODUCTION PREDICTION

„ FOR PREDICTING PRODUCTION, THE


RESERVOIR SIMULATOR MUST BE
COUPLED WITH:

Ø WELL MODELS AND


Ø A SURFACE FACILITIES SIMULATOR

CENTRE FOR PETROLEUM STUDIES Imperial College, London


PRODUCTION PREDICTION
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers
Production
Survey Pressure, Surface Rates,
data
Drilling Downhole Rates

Production
INTERPRETATION Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Well Test Tracer
Logging
Model Model Model Model Model Model Model Model Model
MODELS

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


DECLINE CURVE ANALYSIS
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers
Production
Survey Pressure, Surface Rates,
data
Drilling Downhole Rates

Production
INTERPRETATION Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Well Test Tracer
Logging
Model Model Model Model Model Model Model Model Model
MODELS

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR SIMULATION ( 1960’s to 1970’s)
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers
Production
Survey Pressure, Surface Rates,
data
Drilling Downhole Rates

Production
INTERPRETATION Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Well Test Tracer
Logging
Model Model Model Model Model Model Model Model Model
MODELS

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


RESERVOIR SIMULATION ( 1980’s)
Static Information Dynamic Information

DATA Geology Geophysics Geochemistry Petrophysics Geomechanics Fluids Flowmetre Well testing Tracers
Production
Survey Pressure, Surface Rates,
data
Drilling Downhole Rates

Production
INTERPRETATION Geological Geophysical Geochemical Petrophysical Geomechanical Fluid Well Test Tracer
Logging
Model Model Model Model Model Model Model Model Model
MODELS

Well
Integration Flow
Model

RESERVOIR
MODEL Reservoir Model Prediction of Well
Performance
Completion design
(Upscaling) Stimulation
Artificial lift
SIMULATION OF Simulation Model Improvement of Well
RESERVOIR MODEL Black Oil/Compositional/Thermal Performance
BEHAVIOUR
(History Matching)
© 1997 by Alain C. Gringarten

Calibrated Simulation Model


Development Scenario

Prediction of Reservoir Performance


Pipeline & Facilities
Model
(Decline Curve Analysis)
Prediction of Field Performance
Production Infrastructure
Economic Model Health, Safety and Environment

RESERVOIR MANAGEMENT DECISIONS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


FREQUENTLY ASKED QUESTION
HOW MUCH OF THIS PROCESS
DO WE NEED TO GO THROUGH?

Knowledge

Risk

MANAGEMENT PROCESS

NEED TO QUANTIFY THE RISK


CENTRE FOR PETROLEUM STUDIES Imperial College, London
IMPLEMENTATION
THROUGH NEW TECHNOLOGY
„ STOCHASTIC MODELLING
„ ADAPTIVE HISTORY MATCHING
„ RESERVOIR MONITORING
„ NEW MATHEMATICAL FORMULATIONS FOR
SIMULATORS
„ MULTIPHASE PIPELINE SIMULATORS
„ MASSIVE PARALLEL PROCESSING
„ KNOWLEDGE BASE SYSTEMS
„ COMPUTER AIDED PRODUCTION (CAP) TOOLS

CENTRE FOR PETROLEUM STUDIES Imperial College, London


COMPUTER AIDED PRODUCTION (CAP) TOOLS

„ THE POWERFUL AND PROVEN COMPUTER


TECHNOLOGIES

„ THAT HAVE BEEN USED BY SPECIALISTS

„ BEING MADE AVAILABLE TO AND USABLE BY


THE PRACTISING PROFESSIONAL

CENTRE FOR PETROLEUM STUDIES Imperial College, London


NEEDS OF THE PRACTISING PROFESSIONAL

„ EASE-OF-USE
„ PRODUCTIVITY

Î TRANSPARENT TECHNOLOGY
Î TASK ORIENTED APPROACH
Î KNOWLEDGE BASED SYSTEMS

Î METHODOLOGY ( HENCE REPEATABILITY)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


CONTENT

„ RESERVOIR MANAGEMENT PROCESS


„ DEFINITION
„ OBJECTIVES
„ METHODOLOGY
„ IMPLEMENTATION

„ IMPACT ON COMPETITIVE ADVANTAGE

„ PETROLEUM ENGINEERING CURRICULUM

CENTRE FOR PETROLEUM STUDIES Imperial College, London


COMPETITIVE ADVANTAGE

IF TOOLS BECOME STANDARD


„ METHODOLOGY
„ SOFTWARE

COMPETITIVE ADVANTAGE MUST BE


Î THE UNDERSTANDING OF FUNDAMENTALS
Î KNOW-HOW

Example: Well Test Analysis

CENTRE FOR PETROLEUM STUDIES Imperial College, London


WELL TEST ANALYSIS
BREAKTHROUGH IN THE 1980’S
„ FROM INDIVIDUAL METHODS GIVING DIFFERENT
ANSWERS TO AN INTEGRATED METHODOLOGY BASED
ON SIGNAL THEORY
„ WELL TEST ANALYSIS SOFTWARE
„ PERSONAL COMPUTERS
„ DIFFERENT INTERPRETERS USING THE SAME
METHODOLOGY GET THE SAME ANSWERS

SIDE EFFECTS
Î ERRONEOUS ANALYSES, FASTER

SOLUTION
Î EDUCATION / TRAINING

CENTRE FOR PETROLEUM STUDIES Imperial College, London


CONTENT

„ RESERVOIR MANAGEMENT PROCESS


„ DEFINITION
„ OBJECTIVES
„ METHODOLOGY
„ IMPLEMENTATION

„ IMPACT ON COMPETITIVE ADVANTAGE

„ PETROLEUM ENGINEERING CURRICULUM

CENTRE FOR PETROLEUM STUDIES Imperial College, London


NEW CURRICULUM
SPECIALISTS THAT KNOW HOW TO WORK
EFFECTIVELY IN MULTI-DISCIPLINARY TEAMS
Fundamental Understanding of:
Reservoir Characterisation, Reservoir Modelling,
Reservoir Simulation, and Field Management
The Processes for Integrating and Processing All
Available Information in Order to Make Reservoir
Management Decisions
Î Work Flow Concepts
Î Links Between the Various Types of Data
CENTRE FOR PETROLEUM STUDIES Imperial College, London
MSc Specifications

‰ Follow the reservoir management process

CENTRE FOR PETROLEUM STUDIES Imperial College, London


EXAMPLE:
THE MSc IN PETROLEUM ENGINEERING AT IMPERIAL COLLEGE

THE RESERVOIR MANAGEMENT PROCESS THE MSc IN PETROLEUM ENGINEERING

DATA MODULE 1: FUNDAMENTALS

INFORMATION KNOWLEDGE WISDOM


RESERVOIR MODULE 2: RESERVOIR

GROUP FIELD PROJECT


CHARACTERISATION CHARACTERISATION

PRESENTATIONS

PERFORMANCE
IMPLEMENTATION

PERFORMANCE

MODULE 3:
PREDICTION

INDUSTRY
OF WELL

WELL
PREDICTION OF MODULE 4:
RESERVOIR RESERVOIR
PERFORMANCE PERFORMANCE

FIELD DEVELOPMENT MODULE 5: FIELD


PLAN DEVELOPMENT

RESERVOIR MANAGEMENT DECISIONS INDIVIDUAL RESEARCH PROJECT

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses

CENTRE FOR PETROLEUM STUDIES Imperial College, London


WELL 42
Introduction Well completion practices

January
Basic Petroleum Geology Principles of well production

FUNDAMENTALS 103 hrs


Basic Petroleum Geophysics

PERFORMANCE
October

Reservoir Performance prediction


Rock properties
Numerical Reservoir Performance predictors

RESERVOIR 114
Sub-Surface Mapping
Upscaling

February
Reservoir Fluids Practical use of numerical simulators
Hydrocarbons in-place and Reserves History matching, predictions and optimisation
Production Mechanisms Group Project Phase 2:
Predictions and Well Placement Optimization
Flow In Porous Media

DEVELOPMENT 96
November

Drilling Process engineering/surface facilities


Introduction to petroleum economics Extending field life and improved oil recovery

FIELD

March
Health, safety and environment
CHARACTERIZATION 183 hrs

Geological, geophysical and


Economics
geochemical modeling
Group Project Phase 3:
Geomechanics Surface Facilities and Development Plan
RESERVOIR

Petrophysics

Early
May
Production logging
EXAMS
December

Fluid sampling and analysis


Well Testing

September
May to
Integration into reservoir model
INDIVIDUAL PROJECT
Group Project Phase 1:
Reservoir Characterization

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses
‰ Block teaching

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses
‰ Block teaching
‰ Lectures/notes coordinated and integrated

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses
‰ Block teaching
‰ Lectures/notes coordinated and integrated
‰ Integration with Petroleum Geoscience

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc in MSc in
PETROLEUM ENGINEERING PETROLEUM GEOSCIENCE

Petroleum Geology, Petroleum Geophysics, Rock Properties

CHARACTERISATION FUNDAMENTALS
Geological Field trip
Reservoir Fluids Development Geology
Drilling and Reservoir Modelling
STOOIP & Reserves
Flow in Porous Media Petroleum Engineering
TERM 1

Production Mechanisms
Reservoir Geology, Geophysics and Geochemistry
RESERVOIR

Petrophysics & Formation Evaluation


Fluid Sampling & Analysis Geophysics
Production Logging Structural & Stratigraphic Analysis
Well Test Analysis of Sedimentary Basins
Integration into Reservoir Model
Maureen Group Project (Reservoir Characterisation)
Geomechanics Basin Modelling
Well Performance Structures, Fluids & Pressures
TERM 2- 4

Petroleum Economics
Reservoir Performance Geostatistics
Field Development Sequence statigraphy
Maureen Group Project Group project
(Colin Wall Award) (Barrel Award)
Individual Research Project Individual Research Project
CENTRE FOR PETROLEUM STUDIES Imperial College, London
MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses
‰ Block teaching
‰ Lectures/notes coordinated and integrated
‰ Integration with Petroleum Geoscience
‰ Teach prevailing commercial software

CENTRE FOR PETROLEUM STUDIES Imperial College, London


MSc Specifications

‰ Follow the reservoir management process


‰ Lectures only by experts in their fields
‰ Students with fundamental background
‰ Fundamental / Application / Support courses
‰ Block teaching
‰ Lectures/notes coordinated and integrated
‰ Integration with Petroleum Geoscience
‰ Teach prevailing commercial software
‰ Use actual field data

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Use of field data

‰ Tutorials for taught courses


‰ Group field project
ƒ Phase 1: Reservoir characterisation
16 teams (Petroleum Engineering+Geoscience)
ƒ Phases 2: Production planning
8 teams (Petroleum Engineering)
ƒ Phase 3: Field development
8 teams (Petroleum Engineering)
‰ Individual research projects

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Field data: Maureen Field
‰ Block 16/29a (UK sector of the North Sea)
‰ Phillips UK operator
‰ 1983-1999
‰ 4 appraisal,12 production and 7 water
injection wells
seismic traces and
interpreted maps;
geological maps; core
photographs; routine and
special core analysis
reports; PVT analysis
reports; RFT data; DST
and production test data;
monthly production data

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Field data: Maureen Field

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Maureen Group Field Project
Phase 1: Reservoir characterisation
10 days, December

13150

‰ 5-6 wells 10000


13200

13250
1000

Permeability, m D
STOIIP
13300

Depth, ft
13350
100
13400

‰ Reserve estimates 10

A B
13450

13500
RCAL Porosity
RCAL Porosity Corrected
C D Log Porosity

‰
E F

Preliminary 3D model
13550
1
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
Fractional Porosity Fractional Porosity

500 490
103
STOIIP
450
Recoverable
Pressure Change, ∆p, and Derivative ( psi)

400
367
341
102 350 324
313

300 283
OWC Last test rate only

Oil, MMbbl
250
10
Entire rate history 193 191
200 173
157
150
123

1 100
61
Layer A
50
0 0
0

10-1 P10 P50 P90 Maximum Most Likely Minimum


10-3 10-2 10-1 1 10 102 Probability: Stochastic Deterministic
Elapsed time, ∆t ( hours)

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Maureen Group Field Project
Phase 2: Well placement & Production Optimization
6 days, February

‰ simulation model
‰ optimized well placement plan
‰ oil recovery
‰ cumulative oil production
‰ optimized well design
‰ artificial lift options
‰ a drilling plan
‰ casing design
M aureen 2 FPSO 0 4000
Drill 24" hole
50000 200
2000
Maureen 1
Drill 17 ½” ia
180
0 ps
hole 4000 = 70
TH P 40000 160
600

pro du ction , mms tb


Hole Casing Drill
Depth ft MDRKB

140

Cu mu lat ive oil


BHP, psia

Size Size 6000

Oil ra te , stb/d
36"hole 500
40 0
30000 120
36’’ 30’’ Drill 12" hole 3000
M io-O ligocene Sand 8000
300 100
24’’ 20’’
10000 20000 80
Drill 8 ½” hole
17 ½’’ 13 3/8’’
I.P.R
Balder 60
Form ation
12000
10000 40
12 ¼’’ 9 5/8’’ completing
Oil Rate
M aureen Pay coring 14000 20
8 ½ ’’ 7’’ plug back Cum. Oil Production
0 0
16000 2000
0 20 40 60 80 100 0 10 4 2 10 4
0 2 4 6 8 10 12 14 16 18
Ekofisk Chalk
Years
and Sands Time (Days) Oil Rate, STB/D

CENTRE FOR PETROLEUM STUDIES Imperial College, London


Maureen GroupField Project
Phase 3: Development plan
10 days, March
‰ improved recovery plan GAS TO

Glycol Dehydrator
SALE
3 Stage
GAS FOR

Dehydrator
Compressors
Gas Lift

‰
Cooler Glycol

surface production facilities Make up

‰
Compressors

HSE plan Crude Oil


From
Wells
Gas

1 st
Gas

Oil 2 nd Oil 3 rd
Gas
Oil
OIL TO
SALE

‰
Separator Separator Separator

economic viability water water water

‰
Water CPI

abandonment plan
Gas Skimmer
water
water
TO INJECTION
Oil Oil WELLS
Test

‰
Separator

assessment of risks GAS


OIL
WATER

‰ Colin Wall prize


150 NPV, £million
Excluding Abandonment 600
Including Abandonment
100 Discount Factor 500

Critical : 17.4%
Lease Rate 400 Oil Price
50
Critical : £3.23/bbl Critical : $12.05
Present Value, £million

300

0 200
Inflation
Critical : 6.4%
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20

100
-50 -100 -75 -50 -25 0 25 50 75 100

%Change fromBase Case Values 0

CAPEX
-100 -100 Critical : £930million

-200 OPEX
-150
Critical : £420million
-300

-200 -400

-500
-250

CENTRE FOR PETROLEUM STUDIES Imperial College, London


THE ULTIMATE RESERVOIR MANAGEMENT GOAL

„ TO MODEL A PETROLEUM RESERVOIR AND


ASSOCIATED WELL AND SURFACE FACILITIES
WITH SUCH AN ACCURACY

„ THAT ON-GOING PREDICTIONS CAN BE USED


WITH CONFIDENCE TO OPTIMISE PRODUCTION
OPERATIONS, INCREASE RECOVERY AND
REDUCE OPERATING COSTS
„ THEREBY SUBSTANTIALLY INCREASING
ECONOMIC RETURN WITHIN MANAGEMENT
GUIDELINES

CENTRE FOR PETROLEUM STUDIES Imperial College, London

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