DEVELOPMENT OF OILFIELD GENERAL PHASES IN AN OILFIELD’S HISTORY Exploration Phase ‘Appraisal Phase — ) “Development Phase Reservoir Management Phase DEVELOPMENT OF OILFIELDS Development of an oilfield consists of establishing a control over the movement of oil and gas in a reservoir to producing wells by, > A definite arrangement of wells all over the oil bearing area > By the orderly commissioning of these wells » Establishment and maintenance of their performance > Regulation of their formation energy balance SELECTION OF THE SYSTEM OF DEVELOPMENT How large is the accumulation. ‘What is the mode of occurrence. How is it distributed both areally and with depth. How big is the aquife What type of natural drive may operate. What processes are feasible for its extraction. How will the have. What facilti ry for production etc. Are the facilities available. What are their cost. What are the problems in applying these methods. What political and economic factors\are present which would influence the development. > What information are available and what are the area of uncertainty. > Minimum degree of well interaction > Maximum recovery factor - > Minimum production cost ~ QUIREMENT FOR DEVELOPMENT OF A RESERVOIR/FIELD > Establishing the basic geological reservoir data > Establishing reserve volumes. > > > Establishing the technical indices for a number of variables. Establishing economic indices for each variant. Selection of the most rational variant. ESTABLISHING THE BASIC GEOLOGICAL/RESERVOIR DATA , /» Description of the Geometry () S » Identification of a Depositional Model. ~~~ ¥ i > Correlation of Subsurface Units. \ % Reservoir Description. » Identification of Barriers. \~ ESTABLISHING THE BASIC GEOLOGICAL/RESERVOIR DATA Description of Geometry7 > vvvvy IDENTIFICATION OF A DEI Structural reinterpret data Is Well to Seismic ties established Seismic Inversion Attribute Analysis with inputs from drilling and logging Conducted through facies analysis of coré/ciitting analysis: studies of mineralogical, textural, colour, fossils and st \cters of rock. Conducted throug inalysis 0 Manual identification of individual logs Spider web diagrams Composite electrofacies Should be supplemented by thickness of facies, association of facies, sequence of facies etc. WHAT IS A FACIES vvvy §@) FACIES ANALYSIS Y Facies > > IPO! > - Tide Dominated deposits Marine Shelf Deposits [+ BRAIDED STREAM ALLUVIUM v vvvv MEANI > vvvv High sand shale ratio. Minor amount of silt found in abandoned channels. Good permeability and high porosity. Shales are of limited lateral extent. Rarely form stratigraphic traps. IDERING STREAM POINT BARS: High sinuosity channels. Good reservoir rock with good porosity and permeability. Limited lateral extent. Shale beds tend to form permeability barrier. Abundant impermeable flood plain shales can form stratigraphic traps.> May contain their own source rock. > Most accumulations of hydrocarbon trapped in terrigenous sediments are contained in sandstones deposited in deltas. > Deltas are deposits partly subaerial, built by a river into or against a body of permanent water. > Deltaic sands have good porosity and permeability > Reservoir quality better developed at the top of bars but at the bottom of distributary channels. VE DOMINATED DELTA > Marine processes predominate > Few distributary channels » Grows by prograding wave generated beaches EI Sand bodies parallel coast Forms cuspate outline R DOMINATED DELTAS. Birdfoot deltas Many branching straight to sinuous distributary channels forming bar fingers. Sand bodies nearly perpendicular to the coast. Generates a birdfoot /elongate type of delta. Generates discrete mouth bar deposits vvvvy Lobate Deltas River discharge fluctuates with higher proportion of bed load Increase in the number of distributary channels Generates a lobate shape in outline Sediments are coarser grained and distributaries are ephemeral. Mouth bar deposits merge laterally into sheet sands. TIDE DOMINATED DEPOSITS » Deposits are in moderate water depths ahead of deltas > Tidal range is high and reverse flow occurs > Seaward of distributary mouths the sediments are reworked into parallel linear ridges parallel to the tidal currents with low littoral drift > Linear tidal ranges parallel the shoreline in high littoral drift > Good reservoir properties but limited volume. MARINE SHELF DEPOSITS vvyvvy ‘A plentiful supply of sediments and persistent energy conditions Blanket type sands thought to have originated on large shallow shelf area. > Porosity and permeability is in general, good. 6 @.7 SUBSURFACE CORRELATION Lithostratigraphic Correlation Utilises sand or shale tops for correlation Correlation is composed of same lithologies without regard to temporal factor. Exaggerates continuity of reservoirs Genetically different sandstones may be linked together ¢@) Chronostratigraphic Correlation Preserves the vertical and lateral facies relationship > 3D distribution of lithologic units exert the real influence on reservoir volume and hydrocarbon recovery > Provides an idea of the direction of progradation and retrogradation of ancient shoreline > Concepts of Sequence Stratigraphy are utilised in chronostratigraphic correlation. Sequence Stratigraphy is the study of genetically related facies within a framework of chronostratigraphically significant surfaces. Such surfaces utilized during geologic modeling are vvvvy> Sequences: relatively conformable genetically related succession of strata bounded by unconformities or their correlative continuities. They form in response to relative falls in sea level > Parasequences; relatively conformable genetically related succession of strata bounded by marine flooding surfaces or their correlative surfaces. They form in response to an increase in water depths. RESERVOIR DESCRIPTION > Reservoir intervals contributing to reservoir production are known as pay. Intervals that are accepted or eliminated from consideration as pay are done on the basis of » fluid saturation > porosity — > ‘permeability ©» shaliness > > The re Gross reservoir interval: Unit between top and base of reservoir. Includes both reservoir and non-reservoir intervals. _» Gross sandstone: Summed thickness of intervals that are determined by a Vsh cutoff. » Net Sandstone: Summed thickness of gross sandstone zones that have an /° effective porosity and permeability usually determined by a porosity cutoff. » Gross Pay: Determined by water saturation cut off. _» Netpay: Summed thickness of gross pay thickness that should yield water > > free production usually determined by a critical bulk volume water cut-off. Cementation decreases permeability Fractures enhance permeability Absolute Permeability (Ka)— Permeability calculated with only one fluid present in the pores of aformation. > Effective Permeability (Ke)}— The ability of a rock to conduct one fluid in the presence of another, considering that both fluids are immiscible (e.g., oil and water). Effective permeability depends not only on the permeability of the rock itself, but also on the relative amounts of the different types of fluid present. » - Relative Permeability (Kr) (Ke) The ratio of a fluid’s effective permeability to the formation’s absolute permeability (100% saturated with that fluid). Relative permeal reflects the amount of a specific fluid that will flow at a given saturation in the presence of other fluids to the amount that would flow at a saturation of 100%, with all other factors remaining the same. ~ RESERVOIR DRIVE MECHANISM <> water drive > depletion/solution gas drive > gas cap RESERVOIR ENERGY CONTROL > Primary Recovery Mechanisms > An estimate of the likely primary production mechanism for a reservoir may be made on the basis of geological data even before the reservoir has been produced. For example: (i) Thin, flat reservoirs with low permeability will most likely produce by a solution-gas drive mechanism. > (li) Reservoirs having high closure and high permeability may experience the beneficial effects of gravity segregation of oil and gas. This may supplement the effectiveness of the original gas cap, or form a secondary gas cap. ved (iii) High permeability reservoirs in contact with an extensive aquifer will benefit to some degree from natural water influx (water drive). Material balance calculations may be used to determine the relative importance of the various natural drive mechanisms for a particular reservoir. Material balance calculations require: ‘Accurate and comprehensive production history (ii) Representative fluid samples for PVT analysis. (ili) Periodic pressure surveys. The importance of instituting a program to gather this data as early as possible in the development and production life of a reservoir cannot be over emphasized. A good data gathering program is a key component of an effective reservoir management strategy. IOR: Improved recovery comprises all methods for supplementing natural reservoir forces and energy or otherwise increasing ultimate recovery from a reservoir, including pressure maintenance v vyyy ss any other secoridary recovery technique RESERVOIR PRESSURE MAINTENANCE > gas injection gas is injected in the gas cap in up-dip wells in gas-cap drive reservoirs to maintain reservoir pressure for increasing oil recovery water is injected into water zone in down-dip wells for pressure maintenance and increase in oil recovery > artificial lift methods ting intermittent continuous 2 rod pumping * Conventional primary recovery methods are usually very inefficient and, on the world average, recover approximately 1/3 of the OOIP. = 2/3 OOIP cannot be produced by conventional recovery technology. - current EOR technology can produce about 20% {30% of the residual oil resource vy RECOVERY PROCESSES Residual Oil is Trapped or By-passed Oil > Oil which cannot Fad using existing facilities or infrastructure (existing investment) is trapped (microscale) or by-passed (macroscale) - trapping of oi occurs on all reservoir length scales. - Trapping on the micro or pore scale is by capillary forces. - Trapping on the macro or field scale is caused by areal and vertical by- passing. » ‘Trapping on all scales is strongly influenced by heterogeneity. vy Unrecovered oil may be classified into two categories: Unrecovered mobile oil and immobile or residual oil. ~S vvvvyy > - Unrecovered mobile oil can be recovered by conventional processes by improved access to the reservoir. Reservoir access may be improved by, ~ infill drilling. izontal and multilateral wells. - perforating un-perforated layer of water and gas producing zones. (be recovered by primary and secondary recovery processes such as waterflooding and immiscible gas injection. This oil can only be recovered by tertiary EOR processes. All EOR techniques attempt to recover residual oil by: i) Improving reservoir sweep efficiency. (il) Mobilizing immobile or residual oil. (ESTIMATION OF HYDROCARBON RESERVES ~" Estimation of oil reserves is one of the most important phase in the development of oilfields because on the solution to this prot investment on a prospect. m depends all the deci TERMS PERTINENT IN DEFINING RESERVES ARE Hydrocarbons-initially-in-place: refers to the original volume of hydrocarbons that occupied the reservoir before production Ultimate recovery: is the ultimate economically recoverable portion of hydrocarbons initially in place. Remaining reserves: is the volume of hydrocarbons remaining to be recovered economically using proven technology as of a specified date. ESTIMATION OF HYDROCARBON RESERVES agen volumetric estimates material balance decline curve analysis reservoir simulation OUTLINE OF A DEVELOPMENT PLAN a y v For a “normal” oilfield Investment on the development of t! waiting too long to do so. Planned life of the oilfield is considered to be 20 years. Some operators consider the life to be 15 years depending on the political, ecor ‘operating conditior eee Number of wells to b produces must be de neither pi or desirable to produce the first 50% of the total fecal rente na eae et eset eae eset a years Yearly production rates should not exceed 10% of the remaining reserves at any time Even after half life of the field is reached the R:P ratio which is the ratio between remaining reserves and current annual production should not be allowed to fall below 10. The ratio cannot in practice fall far below 10: it must level off at some minimum value (probably between 5 and 7) because reserves remaining after Baa oe pete ee by pece foe eo reaice es further. The Maximum Efficient Rate for each well and for the field is dictated by the above rules. field needs to be recouped without> Exploitation of prospects in deep, remote/frontier regions require large lead times than shallower prospects in simpler area. > The development system for each reservoir includes: > Well spacing ~ determined mainly by the drive of the reservoir and by the estimated mobility or immobility of the oil drainage boundaries. ——“@ When the drainage boundary is moving (displacement) drive, the wells are arranged in rows parallel to the shifting contours. © When reservoirs are having immobile stable oil zones (reservoir isolated from water encroachment, huge bottom water) wells are arranged in regular grid. ® Rows and well spacing will depend on geological and economic @ For each individual deposit the distance between the rows of wells may be constant or may change from one row to another. @ The spacing of wells in a row may also be equal in all the rows or differ in each one of them. @ All things remaining equal, the productive life of the reservoir and the rate of recovery from the reservoir depend on the spacing and arrangement of wells in the area to be developed. ‘© Experience has shown that the natural drives do not give high ultimate ‘Fecovery. Therefore modern concept is to create artificial energy drive for improvement of recovery. Tare @ The spacing of wells is very vital as wells very close to each other will result in the drainage area of each individual well becoming superposed upon the neighbouring ones. An excessively wide spacing of the well is also irrational as the drainage area of each well is restricted and the peripheral zones of these areas have unswept pockets holding large reserves of oil, thus keeping down the ultimate recovery of oil. ‘TECHNICAL AND ECONOMIC INDICES > In formulating the economic characteristics of the different development plans, use is made of the following factors Labour cost in Construction and Erection Departments Drilling of producing wells Drilling of injection wells Field facilities Cost of Flooding facilities Auxiliary facilities Housing and public amenities Road construction Water supply and sewerage Well maintenance cost Costs depending on the current rate of oil production Costs depending on the quantity of working agent injected into the reservoir and the number of injection wells Costs depending on the number of producing wells in a reservoir Depreciation of wells and other fixed capital Determination of the depreciation cost for injection wells Costs of major well overhauls and cost of repair of any equipment Demulsification costs y VV VV VV VV YVVY vvvvy ECONOMIC ANALYSIS© v ¥ VY VV YVYVVVYY The total profit of any venture is by definition the difference between the total net income and the capital investment. ‘The petroleum business is in the business of “purchasing” a supply of hydrocarbon now for sale at a future date, Therefore in establishing the value of the cash flow-backs compared to the expenditures, the time value of money must somehow be considered together with the monetary value of the profits. Many different forms of methods have been in use in the industry. However there Is no unanimity of opinion regarding the best approach to use. These are merely yardsticks and none will offer a panacea for all economic situations. ‘Two of the frequently used approaches are i) Determination of the net present value (NPV) of the total profit. ii) Internal rate of return (IRR) In both the methods adopted the following inputs are to be used, Revenue Income ~ From oil sales From gas sales ‘OPEX/Expenditure ~ Oil Production Gas production Water Injection etc. Cost of new well Tax ‘Tax applied to: Revenue-{Drillex + WO expenditure + OPEX}