SPE logo

SPE/EAGE Reservoir Life Cycle Management—
An Ever-Changing Perception of Reality

10 – 12 February 2015

Abu Dhabi, UAE | Jumeirah Hotel at Etihad Towers

Technical Agenda

Tuesday, 10 February, 0900–1030          

Session 1: The Changing Face of Reservoirs/Change of Management

Session Chairs: Tayyar Daltaban, ADNOC; Marko Maučec, Halliburton

In the last two decades, we have seen tremendous innovative initiatives and technologic advances in managing the reservoir life cycle. Some of these include complex well designs furbished by the smart completion techniques that convert them into intelligent wells; generation and capturing terabytes to petabytes of structured and unstructured data in relatively short times through high bandwidth fibre optics and satellite systems; filtering and analysing them through state-of-the-art visualisation systems to come up with rapid decisions and direct interventions for direct gains within the framework of the Collaborative Working Environment (CWE) which sometimes is called i-Field, RTOC or DOF; and rapid and timely integration of operational and field data to reservoir performance evaluation models to enhance reservoir strategic development planning.

Paramount to the successful management of the “Changing Face” of the reservoirs is effective change Management which is an organisational process that paves the way for the formation of multidisciplinary synergistic groups to provide better operational site-to-office communication, and to enable faster diagnosis of the management problems and decision-making. The process of managing change for companies that require a cultural shift is likely to be one of the most important challenges being undertaken. In this session of the workshop, the intention is to identify, elaborate, and offer some solutions to overcome the recent challenges of change management, supported by field case studies.

1100–1230

Session 2: Quantifying the Value of Information

Session Chairs: Rosane Oliveira Mota, Petrobras; Djamel Eddine Ouzzane, ADMA-OPCO

Decision-making under uncertainty is inherently related to information and its availability at that given point of time.  When uncertainty exists, usually, there also exists the possibility of reducing it by means of information acquisition. Consequently, information is the negative measure of uncertainty. The crucial issue is quantifying the Value of Information (VOI). In order to optimise the allocation of investment and resources from the point of view of an oil company, several modern economic valuation theories of projects under uncertainty, are used. The innovative concepts of revelation processes and distribution seem relevant to helping solve important practical problems of real options, in which technical uncertainty plays an important role.
               
In petroleum E&P, in the exploratory phase, three types of technical uncertainty are present (existence, volume and quality). In the appraisal and development phases, the remaining uncertainties are volume and quality. In general, the sequence of investments in the exploration and exploitation of the reserves, and the production history contribute to reduce uncertainty. But even in the production phase, although technical uncertainty is less, it may be important to justify investments in additional information, such as 4D seismic and conventional wells conversion into intelligent ones.

An oil and gas company observes the market and makes decisions based on the long-term oil prices. Investments may also involve market uncertainties and be correlated to oil prices. There are multiple alternatives for field development—each one with different costs, time schedules to reveal information, and capacity to reduce uncertainty. All this together generates a development NPV (Net Present Value) function. The goal is to calculate the value of the investment that maximises the NPV for a technical scenario.

1330–1500

Session 3: Transforming Data into Decisions

Session Chairs: Klaus Mueller, ExxonMobil; Christopher Ovens, Wintershall

The quality and quantity of data and other information from oil and gas exploration, appraisal development, and production continue to increase. Simultaneously, static and dynamic models are becoming more complex to represent our improved geological and dynamic understanding.

This session will focus on both the transformation of all the information and the associated uncertainty into coherent subsurface models, and the development of decision processes that effectively capture the full range of model outcomes to facilitate robust, flexible and actionable decisions in a viable economic framework.

Wednesday, 11 February, 0845–1030

Session 4: Quantifying Uncertainties and Risk Management

Session Chairs: Mohamed Abdulla Al Marzooqi, ZADCO; Djamel Eddine Ouzzane, ADMA-OPCO

Achievable but challenging targets can inspire greater performance, but inappropriate targets may result in poor outcomes and destroy value. Uncertainty, as a general concept, reflects an inability to describe an existing state or predict an outcome with complete accuracy. The principal components of uncertainty can be separated into, firstly, the lack of knowledge about the subsurface and geological nature of the reservoirs and, secondly, the lack of knowledge regarding how a reservoir will behave in the future. These are not exclusive, of course, and uncertainty can be (and often is) driven by both elements. In general, the existence of uncertainty regarding knowledge or understanding of current conditions significantly compounds uncertainty in predicting future conditions. Moreover the insufficient availability of appropriate data both contributes to and is affected by the lack of complete understanding of the complex nature of oil and gas reservoirs.

The reduction of knowledge uncertainty can help better characterise and understand natural variability. Also multidisciplinary and close integration in between has changed the concept of natural variability, leading to a shift away from assumptions of many aspects of reservoir performance. Just as uncertainty is defined differently within different fields, the concept of risk can also vary significantly based on the field and context. It is essential to understand that risk and its various components are highly shaped by the level of understanding of individual involved in the reservoir management lifecycle.

Through the life cycle of reservoir management, the risk register is a live document that helps in delivering project value through a well-defined integrated loop where the value of information data acquisition, and interpretation are the main drivers.

1100– 1230

Session 5: Applying Advanced Techniques in the Reservoir Life Cycle

Session Chairs: Naseem Dawood, Saudi Aramco; Derren Simpson, Independent Consultant

The rising demand for hydrocarbons makes it essential for the industry to efficiently manage hydrocarbon assets through their entire life cycles for sustaining performance and maximising recoveries. The continuous evolution of reservoir management techniques and their fit-for-purpose application has been playing a pivotal role in prudently managing reservoirs and thus unleashing their potential.

The session will focus on the role of advanced techniques in areas like surveillance solutions, production optimisation, and stimulation in optimising field performance, and extending life cycles. It will consist of short presentations by speakers with broad experience on relevant topics, and case studies of fields that span the full spectrum of maturity—from the most mature to the newly developed ones. This session will create a knowledge-rich, sharing platform with discussions on the pertinent topics.

1330-1500

Session 6: The Value of Closing the Loop in Reservoir and Field Management

Session Chairs: Adedayo Dada, Shell; Ali Didanloo, Schlumberger

Reservoir management is a dynamic process of closing the Plan-Do-Measure-Learn cycle. The challenging task of effective reservoir management (of increasing complex and mature fields) can become feasible when custodians are able to define/update the field and reservoir management strategy/plan, build appropriate data gathering and management infrastructure and systems, and build representative-validated models. This session will focus on sharing industry knowledge, best practices, processes, case studies, and application of technologies in closing the loop in oil and gas reservoir management.

Thursday, 12 February, 0830-1000

Session 7: Unconventional Field Development

Session Chairs: Warren Fernandes, Baker Hughes; Khalaf Al-Anezi, Kuwait Oil Company

With the unconventional resources playing an ever-expanding role around the world, including in the Middle East region, in the current and future supply of hydrocarbons, subsurface technologies play an important role in optimising reservoir/field development and recovery. The focus of this session is to use best practices, proven, and innovative, new technologies to mitigate the challenges faced during exploration, development and production for unconventional fields.

Integrating data from multiple sources supported by modelling in efficient and repeatable workflow, is key to understanding unconventional systems performance and optimising development. Case studies involving both production analyses and field diagnostics are especially useful, along with laboratory studies, and completion and reservoir modelling.

Mitigation of uncertainties during the different phases of the life cycle of the field is key to improving the economic viability of these reservoirs by enhancing the hydrocarbon recovery, for instance, through a better understanding of in-situ stress, hydraulic fracture system geometry, in-situ permeability, fracture conductivity over time, and more.

1030-1200

Panel Session: Integrated Field Development Strategies

Panel Moderators: Medhat Abdou, ADCO; Mohamed Abdulla Al-Marzooqi, ZADCO

The objective of field development strategies is to obtain the best techno-economic plan for hydrocarbon resource optimisation at all stages during the life of a field, extending from exploration, through to the later stage of appraisal, development, and production operations. The strategy of technical management of hydrocarbon resources is a challenging responsibility that confronts operating and service companies along with government authorities and NOCs. It is a multidisciplinary, integrated, synergistic activity which includes the joint efforts of geology and geophysics, reservoir and production engineering, drilling and well completion, facilities engineering, and economics and risk management. The goal is to identify the opportunity, analyse the alternative development options, plan for the effective handling of the interfaces between different elements of field development, optimise the development/re-development plan, and manage the field performance over its life cycle through reducing the uncertainty and building confidence on the optimal scenario chosen in the least amount of time and at the lowest cost. Analysis of key decision points and risks associated with them is key to assisting in the formulation of the optimum development strategies that minimise the impact of subsurface uncertainties. All these efforts require finding a trade-off between NPV, maximum recovery, operational flexibility, CAPEX versus OPEX profiles, technical options and financial risks.

The design and implementation of the development strategy requires a specific course of action depending on the state of the asset. While basic engineering design, and execution until the first oil, is necessary for green fields, reservoir boundary determination and production sustainment are key for the gold fields. Brown fields refer to those with production on the decline and they form about 60% of the current world production. Hence advances in arresting production decline including the implementation of infill well technologies, IOR, and EOR, continue to dominate the oil industry.

The focus of this session is to discuss and elaborate the best integrated field development practices including those for integrated workflows, the recent innovations and technological advances in field development strategies, methods of maximising the economic benefits from particularly upstream assets by optimising recovery while minimising CAPEX and OPEX, and rejuvenation and refurbishment of the mature fields using conceptual as well as field case studies.