Reservoir Management

by
Dr Anil Kumar
Reservoir Management
The Reservoir Management can be defined as
“Judicial use of various techniques to maximize or
economic recovery from a reservoir"
Objective of Reservoir management

 DECREASE RISK
 INCREASE OIL AND GAS PRODUCTION
 INCREASE OIL AND GAS RESERVES
 MINIMISE CAPITAL EXPENDITURES
 MINIMISE OPERATING COSTS
 MAXIMISE RECOVERY
Reservoir Management
The reservoir management can be used as a checklist by
reservoir management teams to ensure that they are
doing all the “right things” in managing their reservoirs.
The principles are
• Conservation of reservoir energy.
• Early implementation of simple, proven strategies.
• Systematic and sustained practice of data collection.
• Application of emerging technologies for improved
hydrocarbon recovery.
Reservoir Management
Conservation of reservoir energy
This principle applies to controlled and optimized use of the
energy stored in the reservoir at discovery or at any stage of
depletion to maximize economic and efficient recovery of its
hydrocarbons.
The management strategies applied on the reservoir should
avoid depleting reservoir energy inefficiently, especially
during the early stages of reservoir development and
production.
Excessive production of gas from the gas cap of a saturated
reservoir and high production rates leading to excessive
pressure drawdown, should be avoided.
In applying this principle, the reservoir management teams
should strive to achieve a balance between conserving
reservoir energy and maximizing economic recovery of
hydrocarbons from the reservoir.
 Reservoir Management
Early implementation of simple, proven strategies.
The principle of early implementation of simple, proven
strategies is directed at supporting the concept of conserving
reservoir energy.
Simple, proven strategies are reservoir management
practices that are known from industry experience to
conserve reservoir energy.
Some of these simple, proven strategies include some form
of pressure maintenance by fluid injection, limited pressure
drawdown at production wells, isolation of separate
reservoirs at producers, optimal well spacing, and selective
perforation of productive zones.
The costs of implementing these strategies should be
weighed against their expected benefits by the reservoir
management teams so that economic recovery of
hydrocarbons is always maintained.
 Reservoir Management
Early implementation of simple, proven strategies.
The principle of early implementation of simple, proven
strategies is directed at supporting the concept of conserving
reservoir energy.
Simple, proven strategies are reservoir management
practices that are known from industry experience to
conserve reservoir energy.
Some of these simple, proven strategies include some form
of pressure maintenance by fluid injection, limited pressure
drawdown at production wells, isolation of separate
reservoirs at producers, optimal well spacing, and selective
perforation of productive zones.
The costs of implementing these strategies should be
weighed against their expected benefits by the reservoir
management teams so that economic recovery of
hydrocarbons is always maintained.
 Reservoir Management
Systematic and Sustained Practice of Data Collection
The culture of data collection should start at discovery of the
reservoir and maintained throughout its life, as long as it is
economic.
The data collection process should include geologic,
geophysical, petrophysical, pressure, production/injection
data, and any other data to support reservoir development
and management.
The objectives of the data collection program should target
continuously improving knowledge on reservoir processes,
and applying that knowledge on devising improved reservoir
management strategies.
It is expected that this practice will continue to increase in
the industry with the ultimate result of key reservoir data
available in real time for improved reservoir management
decisions.
 Reservoir Management
Application of Emerging Technologies for Improved
Hydrocarbon Recovery
In general, reservoirs whose energies have been conserved with
simple, proven strategies and have ample data acquired are good
candidates for application of emerging technologies for improved
hydrocarbon recovery.
These new technologies include advances in well architecture,
drilling and completion of wells, applications of new chemicals for
improved recovery, equipment for production operations, and any
other technology that improves the hydrocarbon recovery process.
For instance, an emerging technology in well architecture that is
expected to substantially improve productivity is application of
multilateral wells.5–7 Multilateral wells have been used in many
well-managed reservoirs.
The reservoir management team should monitor the industry
regularly for new emerging technologies, and assess the potential of
these technologies for improving recovery from the reservoir.
 Reservoir Management
Application of Emerging Technologies for Improved
Hydrocarbon Recovery
In general, reservoirs whose energies have been conserved with
simple, proven strategies and have ample data acquired are good
candidates for application of emerging technologies for improved
hydrocarbon recovery.
These new technologies include advances in well architecture,
drilling and completion of wells, applications of new chemicals for
improved recovery, equipment for production operations, and any
other technology that improves the hydrocarbon recovery process.
For instance, an emerging technology in well architecture that is
expected to substantially improve productivity is application of
multilateral wells.5–7 Multilateral wells have been used in many
well-managed reservoirs.
The reservoir management team should monitor the industry
regularly for new emerging technologies, and assess the potential of
these technologies for improving recovery from the reservoir.
 Reservoir Management
Long Term Retention of Staff in Multi-Disciplinary
Teams
This final principle of reservoir management is necessary because it
puts emphasis on the importance of keeping members of the team
together long enough to gain critical understanding of the reservoir.
In many organizations, reservoir management teams are composed
of reservoir engineers, geologists, geophysicists, petrophysicists,
production engineers, drilling engineers, facilities engineers, and
other staff.
These multi-disciplinary teams have been recognized in the industry
as being very effective in fashioning sound reservoir management
strategies.
When staff changes are necessary or mandated, it is recommended
that at least one or two key members of the reservoir management
team should be retained to train and transfer knowledge and
experience on the reservoir to the new team members.
Reservoir Management

Various activities in the field connected with reservoir

management can be put broadly under three Stages:
1. Initial stage,
2. intermediate stage
3. end stage.  
Reservoir Management
1. Initial stage,
This is the time when a few number of wells have been drilled
and the oil bearing area has not been fully delineated. The
main activities are based on technological scheme for the
preparation of development plan.
The activities involved are:
a. Generation of data geological, geophysical, drilling,
production, reservoir engineering, mud-chemical,
cement, electro-logging etc.
b. Interpretation of electro-logs determination of effective
thickness, porosity, hydrocarbon saturations, position of
OWC/GOC
C. Drawing of structure contour maps, iso-pach maps, iso-
pay maps, iso-porosity maps, section maps, penal diagram
Reservoir Management
1. Initial stage,
d. Study on reservoir description
e Construction of geological model to estimate hydrocarbon
reserves
f. Estimation of hydrocarbon reserves, generally by
volumetric method
g. Preparation of technological scheme
h. Approval of technological scheme by competent authority
i. Approval of funding from the competent authority
j. Drilling of development wells
k. Installation of GGS/GCS, CTF, production platforms,
processing platform, laying of internal pipelines and think
pipeline etc.
Reservoir Management
1. Initial stage,
l. Marketing of the product
j. Facility for transportation of oil gas
k. Creating research and development facilities.
l. Field trials/pilot projects where necessary and later
implementation on commercial scale if found successful
j. Creating facilities for work over jobs
k. Setting a call for development skill
l. Setting facility for human resource development Etc, etc,
Reservoir Management
2. Intermediate Stage
i. Generation of data: geological, geophysical, drilling,
production, reservoir engineering, mud-chemical cement,
electro-logging, etc.
ii. Study on reservoir description
iii. Carrying out production logging study and also taking
some specific electro-logs
iv. Review of geological model
v. Estimation of oil/gas reserves by
• Volumetric method
• Material balance method
• Decline curve method
vi Simulation method.
vii Performance review
Reservoir Management
2. Intermediate Stage
viii Approval of funding,
ix Preparation of development plan.
x Drilling of infill walls if necessary.
xi Preparation of pressure maintenance scheme if required
xii Implementation of pilot scheme if oil is highly viscous
xii Monitoring of field operations as per plan.
xiii. Implementation of artificial lift scheme
xiv Carrying our research and development studies where
necessary
Xv Carrying out work over Jobs where required
Reservoir Management
3. Last Stage
In this phase, all activities involved in intermediate stage
are included Besides some more activities given below are
also included
• Preparation of final development plan
• Implementation of EOR schemes if any after achieving
success of the project at pilot scale
For execution of the activities indicated above, it is essential to
strictly monitor the reservoir and all activities connected with this.
Now some major activities under reservoir monitoring are
mentioned below.
Reservoir Management
Reservoir Monitoring
Due to uniform movement of the contact the advantages are
more oil recovery
• water free oil for longer period,
• longer self-flow period,
• reduction in water handling cost,
• immediate installation of de-emulsification and
desalination plant not required,
• Water disposal facility immediately not required etc
Following steps are required to achieve uniform movement of
the contact
Reservoir Management
Reservoir Monitoring
a. Uniform movement of interface
Following steps are required to be taken to achieve uniform
withdrawal rate
• Adjustment of production and injection rates
• Suitable well spacing.
• Periodical measurement of static pressures in wells representing
whole of reservoir.
• Periodical testing of well productivity and injectivity in wells
representing whole reservoir
• Production Logging in selected wells.
• Sampling of water in edge wells for salinity study
• Studying the movement of interface on regular intervals of time
• Reviewing performance prediction of reservoir on regular
intervals of time.
Reservoir Management
Reservoir Monitoring
b. Reservoir Description
One of the most important stages of reservoir management is
reservoir description.
This stage is to identify and present a model for describing the
reservoir along with it’s behavior.
The predicted behavior should be similar to the actual behavior
of the reservoir as much as possible.
Reservoir description is a dynamic process which is repeated as
soon as receiving the new information.
Reservoir model is prepared by integrating and interpreting the
different types of information and by engineering software.
Reservoir Management
Reservoir Monitoring
b. Reservoir Description
The aim of reservoir description is to define a reservoir model
which shows the dynamic and static information of the
reservoir.
As soon as the reservoir model is constructed it’s coordination
and compatibility with available interpretative data and
information must be proved.
In the proving stage, the respond of the reservoir should be
computed and evaluated by different simulators such as
seismic, well logging, flow and reservoir in order to prove the
ability to reproduce the information and data which are
mentioned above
Reservoir Management
Reservoir Monitoring
c. Reservoir Performance, Well Performance and Field
Development
After the model was confirmed, this model can be used for
predicting the future behavior of the reservoir in different
development scenarios.
Reservoir production behavior such as pressure, flow rate, fluid
saturation percentages are calculated by using the flow
adjusted simulators.
For predicting the field behavior including reservoir, wells and
well head facilities is necessary and should be studied together.
For example, at any point of the system flow rate is determined
by the balance of inflows and outflows and by the effects which
are applied on the input flow and output flow, the flow rate
reach the optimal and economical status
Reservoir Management
Reservoir Monitoring
d. Pressure Maintenance
Pressure maintenance by water injection is very lucrative and
gives dividend. In order to achieve success and desired
objective, following may be required:
• Pressure maintenance should be done on right time at right
place.
• The pressure maintenance scheme should be such as to give
maximum recovery.
• Wells should be optimally placed so as to have it minimum
well interference
• Gas-cap should not be allowed to expand.
• Water injected should be free of suspended material, algae
& bacteria, iron, Corrosive element etc.
• Only compatible water should be injected
Reservoir Management
Reservoir Monitoring
d. Pressure Maintenance
• Cores should be analyzed on scanning electron microscope
to know the presence of mica, vugs fractures etc.
• Well condition must be checked before converting them to
injectors
• Cementation in wells converted to injectors must be very
good
Reservoir Management
Reservoir Monitoring
e) EOR techniques
It is well-known that the gestation period for implementation
of any EOR technique is very long Therefore the action about
the identification of the technique must start much earlier.
For this following steps have been proposed
• Screening of EOR Techniques based on reservoir
characteristics and fluid properties, depth of occurrence of
oil, thickness etc.
• Identification of suitable chemicals and its compatibility
with respect to rock, fluid and equipment in use must be
carried out in the laboratory before its execution in the field
• Carry out techno-economic analysis :one year
• Designing of pilot project, : 1 to 2 years
Reservoir Management
Reservoir Monitoring
e) EOR techniques
Pilot project execution involves following operations,
I. Drilling of wells
II. Purchase of equipment
III. Installation of surface equipment or creation of surface
facilities
IV. Purchase of chemicals
V. Analysis of results of pilot project
VI. Economic evaluation 3 years
VII. Extension of pilot project to field on full scale.
Reservoir Management
Reservoir Monitoring
f) Work Over Jobs
Attempt should be made to keep wells healthy, any sick well
should be repaired immediately and put to production. To
achieve the desired results following is suggested
Proper diagnosis why, where and what is the problem and
what should be dene prior to execution of the job.
Laboratory studies must be carried out to identify the
chemicals. if it is not a routine job.
Ensure the right type of equipment and chemicals to be used
at night place effectiveness .
Technical evaluation after completion of the job must be
carried out to judge its effectiveness.
Reservoir Management
Reservoir Monitoring
f) Work Over Jobs
Technical auditing must be done
If gains are quite substantial the team must be awarded
properly.
If job carried out was without proper skill or without proper
diagnosis it should be identified in time and mid course
correction should be taken accordingly.
 
Reservoir Management
Reservoir Monitoring
f) Infill Drilling
Due to non-form and an isotropic nature of the formation,
some of the area/ areas may not be contacted by water
injected in the reservoir.
This can also happen in applying any EOR technique.
This results in formation of oil islands.
The quantity of oil un-drained may depend on formation
characteristic; more in tighter reservoir and high viscous oil
reservoirs.
The quantity of oil in these islands can be found with the
help of simulation study or wells testing. If quantity of oil
un-drained is sufficiently high a well can be drilled there
which is known as infill drilling.
This purpose can also be served by side fracking.
By this oil recovery increases. 
Reservoir Management
 Reservoir Management
Case Studies
The reservoir management strategy that proved successful in the Main Body
of reservoirs can be enumerated as follows:
1. Reduce production of free gas from the gas cap.
2. Maintain reservoir pressure by gas and peripheral water injection.
3. Install extensive program of data collection and monitoring of waterflood
performance.
4. Exploit the oil bank created by the waterflood by drilling infill wells.
Geology.
The 31S structure is an elongated, doubly plunging anticline, which was
slightly deflected at its mid region to form two distinct halves, called the
MBB and the W31S.
The OOIP was calculated at 530 MMSTBO for the MBB reservoir, and 80
MMSTBO for the W31S reservoir for a total of 610 MMSTBO for the
combined MBB/W31S reservoirs.
The range of porosity is 11%–26%. The geometric mean air permeability
from core samples is 32.3 md,
 Reservoir Management
Case Studies
The range of porosity is 11%–26%. The geometric mean air permeability
from core samples is 32.3 md, with a range of 10 to 250 md.
The range of initial water saturation is 30%–45%.
The mobility ratio for water displacement is favorable at 0.6, with residual oil
saturation to water of 25%.
Production and Injection History Cumulative oil production from initial
production in January 1942 through December 1975 was just 1.15 MMBO.
Total oil production rate rose rapidly to 25,900 BOPD in May 1977 but was
later reduced to 10,765 BOPD towards the end of that year due to rapid
decline of reservoir pressure.
A pressure maintenance program by gas injection at the crest of the
structure was initiated in October 1976.
In June 1978, a pilot peripheral waterflood project was started on the
southeastern nose of the MBB reservoir.
 Reservoir Management
Case Studies
Summary of Reservoir Rock and fluid properties
 Reservoir Management
Case Studies
The pilot waterflood project was designed to evaluate the effectiveness of
peripheral water injection in displacing oil towards the first line of in-board
producers.
The pilot waterflood project was very successful because the in-board
producers responded with higher oil production rates.
This led to the expansion of the peripheral water injection around the entire
MBB/W31S reservoirs from 1982 to 1985 (Figure 20.11).
The gas injection program was ended in 1988 with cumulative gas injection
volume of 117 BCF. Gas injection was terminated because increased water
injection was considered sufficient for pressure maintenance.
Peripheral water injection resulted in the development of a significant oil
bank within the MBB/W31S reservoirs (Figure 20.11).
 Reservoir Management
Case Studies The oil bank was created
updip in areas of the
Gas Injector structure where a large
Gas Cap Region secondary gas cap had
Oil Bank Region developed because of the
Water Injector decline in reservoir
pressure and the gas
injection program.
As the oil bank developed,
infill wells were drilled on
the leading edge of the oil
bank. Most wells drilled in
the oil bank produced at
GORs that were close to
solution GOR.
 Reservoir Management
Case Studies
Development drilling of infill wells reduced well spacing in the MBB/W31S
reservoirs.
The production history of MBB/W31S reservoirs is shown in Figure 20.12.
The historical gas and water injection rates are shown in Figure 20.13. The
historical gas-oil ratio and water-oil ratio for the reservoirs are shown in
Figure 20.14.
The historical average reservoir pressure of MBB/W31S reservoirs is shown
in Figure 20.15.
Displacement Mechanisms.
At the start of production, the dominant drive mechanisms in the
MBB/W31S reservoirs were by fluid expansion and solution gas drive.
These were assisted by gas displacement from expansion of the secondary
gas cap. Later, the main mechanism that assisted oil recovery in the
MBB/W31S reservoirs is oil displacement by water injected at the periphery
of the reservoirs.
 Reservoir Management
Case Studies
Oil displacement by waterflood in the MBB/W31S reservoirs has a favorable
mobility ratio of 0.6. Peripheral waterflooding in the MBB/W31S reservoirs
over time created an oil bank and shrunk its secondary gas cap as shown in
Figure 20.11.
 Reservoir Management
Case Studies
Displacement Mechanisms.
At the start of production, the
dominant drive mechanisms in the
MBB/W31S reservoirs were by fluid
expansion and solution gas drive.
These were assisted by gas
displacement from expansion of the
secondary gas cap. Later, the main
mechanism that assisted oil recovery
in the MBB/W31S reservoirs is oil
displacement by water injected at the
periphery of the reservoirs.

Historical GOR and WOR for MBB/W31S reservoirs.

 Reservoir Management
Case Studies

Displacement Mechanisms.
Oil displacement by water flood in
the MBB/W31S reservoirs has a
favorable mobility ratio of 0.6.

Peripheral water flooding in the

MBB/W31S reservoirs over time
created an oil bank and shrunk its
secondary gas cap

Historical average reservoir pressure of MBB/W31S reservoirs.

 Reservoir Management
Case Studies
Application of Reservoir Management Principles
Conservation of Reservoir Energy.
To conserve reservoir energy, oil production was curtailed from 25,900
BOPD to 10,765 BOPD.
This early intervention measure reduced the growth of the secondary
gas cap that formed after average reservoir pressure initially at 3150
psia declined about 450 psi below the bubble point pressure at 2950
psia.
By shutting in high gas-oil ratio wells and increasing water injection,
the producing gas-oil ratio of the reservoirs was maintained relatively
stable as shown in Figure
 Reservoir Management
Case Studies
Application of Reservoir Management Principles
Early Implementation of Simple, Proven Strategies.
Gas injection at the crest of the followed with the start of a pilot
water injection .
Gas and water injection are simple, proven strategies that can be used
to maintain reservoir pressure and improve oil recovery.
The peripheral water injection strategy was selected because there
were concerns about premature water breakthrough at the producers
for the highly heterogeneous sands.
Also, peripheral water injection was cheaper to install compared with
pattern water flood and could be discontinued quickly, if adverse
results were observed.
Early implementation of these two simple strategies improved oil
recovery in the MBB/W31S reservoirs substantially, when compared
with the performance of almost identical reservoirs in the area
 Reservoir Management
Case Studies
Application of Reservoir Management Principles
Systematic and Sustained Practice of Data Collection.
An extensive data collection program was undertaken as an integral
part of the reservoir management strategy for the peripheral
waterflood project in the MBB/W31S reservoirs.
This data collection system included pressure monitoring in wells
located in key areas of the reservoir, wireline formation test pressures,
core samples, and complete log suites from new infill wells,
production logs from producing wells, injection profile logs from water
injectors, fluid entry surveys with downhole videos, and gamma ray
surveys to identify layers showing significant water production.
As a result of this massive data base, the management of the
MBB/W31S waterflood project was constantly updated and improved
to take advantage of the advancement of the floodfront into
unflooded areas of the reservoir.
 Reservoir Management
Case Studies
Application of Reservoir Management Principles
Application of Emerging Technologies for Improved Recovery.
The emerging technologies that were used to improve hydrocarbon
recovery in the reservoirs under water flood project.
This assisted the reservoir management team to adjust the water
injection profile by installation of multiple packers in water injection
wells.
For instance, downhole video cameras were especially useful in
identifying water producing layers for remedial work to isolate or
shut-off water production.
A management team composed of staff from diverse disciplines was
formed for a successful peripheral waterflooding project. The team
was able to devise new management strategies or modify existing
strategies based on analysis of extensive data collected on the
waterflood project.
Thank You