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SPE 142764

Assessing Gas-Lift Capability to Support Asset Design


James W. Hall, SPE, Mubarak A.M. Jaralla, Qatar Petroleum

Copyright 2011, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE Projects and Facilities Challenges Conference at METS held in Doha, Qatar, 13–16 February 2011.

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
Qatar Petroleum (QP) produces hydrocarbons from the onshore Dukhan Field and two offshore oil fields (Bul Hanine and
Maydan Mahzam). After producing via natural flow for an extended period, pressure depletion and water influx have led to the
use of artificial lift. The lift method of choice in QP-operated oil fields is continuous flow gas lift, for both technical and
economic reasons.

The time of transition from natural flow to artificial lift for an oil field presents significant challenges and also great
opportunity. A number of aspects of the operation need to be updated, to suit the new conditions imposed by artificial lift
requirements. Successful adaptation to the new requirements delivers great benefit. Similarly, failure to determine and adapt
to the new requirements can lead to early abandonment of a field. The task of determining the requirements for the
organization, people, systems, and hardware is facilitated by a structured multi-disciplinary approach to achieve the best
results.

In order to evaluate the existing capabilities in the field of gas lift, a team of technical specialists conducts a series of
interviews with selected staff. The goal of these interviews is to first establish the current perceived capability in gas lift
across the stakeholder directorates. After establishing this current state perception, those interviewed are then asked to
articulate their vision of where the organization should be in the future, to achieve maximum recovery / benefit from the
producing assets. This methodology has been successfully applied for other initiatives in the recent past.

After reconciling the differences between perceived “As-Is” and actual state, and also perceived “To-Be” with technically
feasible targets, a “Road Map” is developed. The road map outlines the path to development of capability related to
organization, people, systems, and hardware to deliver the vision for long term gas lift production of the assets. The combined
road map elements define specific functionality which is incorporated into the design of the facilities.

This integrated, multi-disciplinary approach facilitates communication between organizational segments and supports the
inclusion of critical components in the design and operational practices of the new infrastructure to support gas lift operations.
Facilities designed with consideration for the long term goals of the business will serve to reduce operating costs, reduce HSE
exposure, and improve ultimate recovery.

Introduction
Large hydrocarbon assets often have revised their development plans as assets mature and as new technologies appear during
the operating life of the field. As the plans are being renewed, it is critical for core competencies to be leveraged to ensure that
the development plans are built with consideration of existing capabilities and that the design drives the development and
application of new capabilities required by the business. Once put in motion, the inertia of such proactive movement in a
massive organization can be considerable.

Core competencies are the collective learning in the corporation and are strengthened by the integration of multiple streams of
technologies (Prahalad and Hamel, 1990). Focus on a core competency compels investment in needed technology and
encourages infusion of that technology throughout the business. This is done by identifying the people that embody the core
competencies and integrating their knowledge, experience, and vision into current operations and designs for future projects.
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Teams working on the design of large capital projects are encouraged to focus on the goals and activities which are specific to
their individual tasks. This promotes a level of “blindness” to other aspects of the project which may be impacted by their
activities. It is also common for project staff to be isolated from staff in operational departments. This leads to similar
blindness to currently employed operational practices. As a result of focus on task deliverables and isolation from operations
departments, the new project may not be well received upon commissioning and handover. Integration of the activities of
project and operational teams is required both for the short term project and the long term benefit of the asset. Engagement
with the carriers of core competencies and with the long term plans for those competencies helps to prevent disconnects
between outsourced project teams and corporate strategists.

Description and Application


Technical experts in gas lift select staff currently engaged in gas lift activities and conduct a conversational interview. Using a
prepared set of questions, staff are asked to relate their perception of the current state (As-Is) of gas-lift capabilities for a
variety of elements, including organization, people, systems, and hardware. Note that there can be a significant difference
between the collective perception of the current state by staff and the true current state. This in itself can be a valuable finding.
Staff are then asked, using the same questions, to explain their vision of the future state (To-Be) of gas lift capabilities. The
narrative responses for both sets of questions are then interpreted and compared to a set of prepared possible responses and
assigned a numerical value for collation and analysis. The highest level response for each question is considered world class
performance. The lowest level response equates to no activity related to the subject of the particular question. If the
interviewee has no knowledge of the subject of a question, no response is recorded for that question.

Questions for the interview are developed from a basis in what is “core” to the gas lift business. To determine what sort of
elements support the core competency of gas lift, the following high-level questions were considered to guide development of
the specific interview questions:

1. What will help us to operate a gas lifted field efficiently and effectively over the long term?
2. What foundation components do we require to capitalize on future developments in gas lift technology?
3. What components support gas lift and other activities which promote operational efficiency?
4. What components directly or indirectly improve reservoir recovery via gas lift?

The 78 questions developed using these guidelines were packaged in a workbook consisting of a worksheet for each major
element: organization, people, systems, and hardware. Individual questions included reference responses for the interviewers
to use in assigning a value to the responses received. Response values range from 1 to 5 with a resulting average value of 3 for
each question. Additional worksheets were used to tabulate the responses and to perform statistical analysis to determine,
range, mode, and standard deviation of the responses. Results were collated in tabular format, with radar plots for graphical
presentation. Twenty-five staff were interviewed, from the Oil Development, Production, and Drilling organizations to ensure
good coverage of stakeholders for gas lift.

Within the organization element, questions were grouped under the sub-elements of organizational structure, integration and
support, planning and execution, and reporting. The people element was divided into the sub-elements of resources, training,
gas-lift expert networks, and assessment. The sub-elements for systems were tools, surveillance process, and automation. The
hardware sub-elements were wells, completion and well intervention, gas-lift supply, and measurement.

It is important that responses from those being interviewed are encouraged to be narrative in nature. Response content is
richer if a narrative, expository story rather than a “multiple choice” quick response selected from a set of canned answers. A
response selected from a multiple choice list of answers tends to guide those being interviewed to a specific answer, where a
narrative response is more detailed and has a greater degree of ownership by the interviewee. Requesting an extended
response may take more time, but it also encourages greater depth of thought and encourages “Organizational Storytelling”
(Denning, 2007). The narrative process begins with facts and data from the current state and then leads to creative thinking
which is needed for the To-Be future state vision. In the process of developing the story they are telling, the narrator
strengthens their commitment to the future vision. After all, it is their story! The case for change is already made in the mind
of the responder.

Before action is taken is important to match a business case with the proposed (To-Be) future state. While world class
performance may be the vision of the surveyed staff, it may not be supported by a business case or may not be technically
achievable. In this event, the vision for the future state may be considered as an element of a future expansion, but may not
receive present day implementation or significant investment. For example, while the future vision of a lift gas sweetening
system may not be supported by a present day business case, the inclusion of valves and flanges in a new design is a small
investment to eliminate a plant shutdown in the event of a future facility expansion.
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After determining the desired future state for the elements in the study, a road map is created to guide business decisions and
focus resources on the steps which will lead to achievement of the To-Be vision. The road map is structured to ensure that the
timing of steps toward the future vision coordinate short term requirements and long term goals. Capital project designs should
be coordinated with the technology road map, both to ensure success of the project and to ensure that the road map feeds
development of required capabilities. For example, it makes good business sense to begin building gas lift capability in real-
time optimization if the future expectation is to be operating a field with many gas lift wells and a constrained lift gas supply.

Presentation of Data and Results


The result of the As-Is, or current state, assessment indicates that QP perceives itself to possess average capability in gas lift.
The value resulting from the assessment was 2.9 of a possible 5.0, with 3.0 being average. In some areas, QP was truly world
class and in others, found to be lagging behind the industry.

The result of the To-Be, or future state, assessment indicates that QP perceives a benefit to advance to an above-average
capability, but does not view attainment of world class standing to be necessary. This is due to the general awareness of the
lack of a business justification for achieving world class standing in many areas and also to the effect of statistical averaging.
The average To-Be value is 4.1, which is a significant improvement over the 2.9 value for the currently perceived state. The
response data set is too large to present here, so examples are given from each of the major elements.

The organization which supports gas lift may be a formal structure found in a table of organization, or it may be a set of
functional relationships which are formed within the official organization. An effective gas lift organizational structure has
been found to include a minimum of four staff. The roles address the vertical relationship from field operations, through
technical design and support, to management. The management role is that of a “Gas-Lift Champion”, commonly a functional
role in addition to their formal organizational role. This role does not require extensive technical capability, but does require
commitment to maintaining and strengthening the elements which deliver gas lift value for the business over the long term.
The Gas-Lift Champion is the eyes, ears, and voice for gas lift at the management, decision-making level of the organization.
Without this role, gas lift may not receive focus as an integrated function.

The technical Subject Matter Expert (SME) serves as the highest level technical authority in the company, normally reporting
to a technical, rather than operational, manager. Their role requires that they be familiar with the gas lift function within the
company and also have an external awareness of status and advances being made in the global gas lift industry. They deliver
technical service and training to staff in the different assets and work to ensure technical continuity between assets and
projects. As they move between operations, projects, engineering and management, they perform the roles of integrator,
communicator, and translator. Without this role, gas lift may lose its technical edge, and see fragmented implementation in
different assets within the company.

The asset-level Petroleum Engineer and Production Planner are the specialists for the asset, normally reporting to the asset
manager. These individuals normally perform the roles of system and completion design, valve set pressure calculation,
surveillance, and optimization. Working with the field operations staff, they will also engage in the troubleshooting process
should problems arise. This role is critical to the creation, delivery, and optimization of the components of gas lift which work
together in an integrated system. If this role is not performed by in-house staff, it may be relegated to a third party who may
not deliver results which fit the business model of the operating company.

The field-level role has been known by titles such as Well Analyst, Test Engineer, Production Technician, Production
Optimization Specialist, and many others. The role requires a higher level of technical expertise in gas lift than their peers.
They normally are based in a field office and they normally report to a production manager. They will be experienced in
production operations and will be quite familiar with the “personality” of the wells in the field. With regular direct
communication with the asset engineering and planning staff, they serve as a communication channel between engineering and
operations. Without this role, the details required for efficient gas lift operations are often lost or ignored.

The As-Is score in the survey is 3.3 (Figure 1.), indicating the perception that some of the required roles were lacking. This
perception is supported by the facts.

Figure 1. As-Is question #1.1


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The To-Be score in the survey is 4.1 (Figure 2.), indicating the perceived need for improvement. The mode (most common
response) is 4, with responses ranging from 3 to 5. It is interesting to note that the result did not indicate a need to move to the
Word Class level of 5. The need to fully populate the recommended organization will be examined as part of the road map
development effort.

Figure 2. To-Be question #1.1

For the people element, one question in the sub-element of resources examines the delays in implementation of gas lift related
programs resulting from a shortage of resources such as operations staff. If there is a shortage of operations staff, or their
work assignments do not address gas-lift activities, this will be seen by delays resulting from prioritization. On the other hand,
if there are no delays seen in the completion of gas-lift related activities; this indicates adequate staffing levels and a high
priority being assigned to gas lift work programs.

The As-Is score in the survey is 4.5 (Figure 3.), indicating the perception that there is little delay resulting from the lack of
availability of operations staff. The mode response is 5, with a range of 4 and a standard deviation of 1.3. While the average
response is quite good, the high range and relatively high standard deviation indicate that there is disagreement on the
perception of the current state among those interviewed.

Figure 3. As-Is question #2.2

The To-Be score in the survey is 4.7 (Figure 4.), which demonstrates the awareness and desire to further address operational
efficiency by reducing the delays. The mode response is still 5, as was the case with the As-Is perception, but he range is
reduced to 3 and the standard deviation to 0.8. This improvement supports a strong future vision of minimal delays in gas-lift
activity implementation resulting from a shortage of operations staff.

Figure 4. To-Be question #2.2

For the system element, the automation sub-element was addressed with question 3.20. The industry standard method for
monitoring and controlling lift gas injection rate is to use automated rate control valves with gas rate meters on each gas-lift
line providing the input signal to the control loop. The question asks for the perception by the interviewee of the percentage of
wells which are equipped with these systems.

The average value for the current state perception responses is 3.4 (Figure 5.). This is an accurate representation of the actual
state with all wells in two fields being so equipped and only about 30% of wells in another field appropriately equipped. There
was a significant difference in responses from offshore, where all wells are equipped with automated gas lift monitoring and
control; and onshore, where these systems are in the process of being installed and commissioned. The mode response is 5,
but the range of responses is 4 with a standard deviation of 1.9. This high range and standard deviation reflects the disparity
between onshore and offshore.
SPE 142764 5

Figure 5. As-Is question 3.20

The perception of the future state by those who responded to the question is that all wells should be equipped with injection
rate monitoring and control systems. The average score was 5.0 (Figure 6.), indicating consensus from the 25 staff
interviewed. This response supports the intuitive concept that automated gas lift monitoring and control is beneficial to a field
planned for depletion by continuous flow gas lift.

Figure 6. To-Be question 3.20

For the hardware element, the lift gas supply sub-element was investigated with question 4.17 regarding lift gas quality. Lift
gas quality has a profound impact on the long term integrity of gas lift system hardware such as compressors, distribution
lines, well tubulars and gas lift valves. Existence of solids in the lift gas is indicative of serious issues while will propagate to
other components quickly. The lift gas supply should not contain any sort of solids, whether they are scale, corrosion
products, or sand. Free water in lift gas containing carbon dioxide and hydrogen sulfide will result in corrosion while will
quickly affect piping and become a Health, Safety and Environmental (HSE) issue. Hydrocarbon condensates in lift gas are
less of a concern, having little detrimental effect on most components with the exception of erosion on control and downhole
gas lift valves. Hydrogen sulfide is expensive to remove from lift gas and is not a major corrosion issue if the lift gas is dry
and piping is rated for hydrogen sulfide service. However, there is always an HSE concern with the presence of a gas as toxic
as hydrogen sulfide. The World Class aspiration is for lift gas to contain no solids, no free water, no hydrocarbon condensates
and no hydrogen sulfide.

The average value for the current state perception (As-Is) responses is 3.6 (Figure 7.), indicating the perception that the lift gas
contains hydrogen sulfide and some belief that hydrocarbon condensates are also present. The mode response is 4, with a
response range of 1 and a standard deviation of 0.5. The low range and standard deviation indicates a good common
awareness of lift gas quality which is relatively accurate. In fact, there are hydrocarbon condensates in the system, but they
have been found to have minimal detrimental effect.

Figure 7. As-Is question 4.17

The future state perception is that there is no improvement required for lift gas quality. It is acceptable to have hydrogen
sulfide and hydrocarbon condensates present in the lift gas, as long as there is no free water. It was commonly perceived that
removal of hydrogen sulfide from the lift gas was not supported by a business justification. However, should there be other
business benefits to the sweetening of lift gas, it was seen as beneficial. The average score was 3.6 (Figure 8.), with a mode
response of 4, a range of 1 and a standard deviation of 0.5.
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Figure 8. To-Be question 4.17

A summary of the future state perception average responses for each sub-element are presented in Table 1. Most of the
averages for each sub-element indicate a perception that a level four (4) capability, which can be thought of as “above
average”, is sufficient for the needs of QP. However, note that for most sub-elements, the mode (most common) response was
a level five (5) capability, indicating world class aspirations by the stakeholders. A simple aspiration is insufficient
justification for a large expenditure, with a firm business justification being required. The business justification must fit within
an overall gas lift capability development framework. Establishment of the gas lift capability framework is a step in the
development of the gas lift road map.

Major
Sub-Element Value
Element

Organization Organizational Structure 4.4


Integration and Support 3.5
Planning and Execution 4.4
Reporting 4.5

People Resources 4.1


Training 4.5
Gas Lift Expert Network 2.9
Assessment 3.8

Systems Tools 4.1


Surveillance Process 3.5
Automation 4.4

Hardware Wells 4.3


Completion and Well Intervention 4.8
Gas Lift Supply 4.4
Measurement 4.4

Table 1. “To-Be” Response Summary

Development of a gas lift road map is the next step. The process of developing a technology road map is complex and time
consuming, but beneficial when implemented with both short term and long term goals in mind. The road map serves to
highlight the technologies required to meet those needs, and to forecast technology development. The management
endorsement of the road map also eases the process of business justification for each of the components. Linkage to other road
maps also serves to integrate initiatives which are being progressed simultaneously, building momentum for each initiative.

Conclusions
The process of interviewing a multidiscipline range of stakeholders of gas lift technology and operations in QP, obtaining
narrative responses, has produced a wealth of information. The current state (As-Is) perceptions of those interviewed were
validated against the facts and found to be accurate to an acceptable degree. The stakeholder perception is that the current
state of gas lift within QP is average, or slightly below average.

However, the future state (To-Be) aspiration of the stakeholders is above average in the majority of cases and World Class in
several cases. Properly supported with business cases, most of the aspirations will contribute directly to existing projects in
various stages of planning and execution. Each of these projects contains elements included in the suite of interview subjects.
Establishing a link between the projects and the gas lift function strengthens the case for action in each project.

The close coupling of gas lift with a number of other systems supports the development of a gas lift technology road map to
document the linkage and to leverage development and deployment of technologies which deliver benefit to multiple projects.
As gas lift is the selected artificial lift method for QP oil operations, integration of the financially supported aspirations for gas
lift technology into the scope of other projects will support improvement of operational efficiency and ultimate reservoir
recovery.
SPE 142764 7

Acknowledgements
The authors wish to thank those interviewed for their detailed and candid responses. We also thank Qatar Petroleum for
permission to publish this paper.

References
Prahalad, C.K. and Hamel, G. 1990. The Core Competence of the Corporation. Harvard Business Review, Reprint No.90311, (May-June
1990, Number 3): 79-91.
Woodyard, A.H., Hall, J.W., and Kendrick, R.A. 1993. Team Strategies: Managing Technical Specialties. Paper SPE 26416 presented at the
1993 SPE Annual Technical Conference and Exhibition, Houston, Texas, USA, 3-6 October. doi: 10.2118/26416-MS.
Denning, S. 2007. The Secret Language of Leadership. San Francisco, California: Jossey-Bass

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