April 25th, 2021 by Vini Nandi Rahma
On April 25th 2021, SPE Java Section held Young Professional Technical Discussion Group event with theme “Integrated Reservoir Performance Management: A Proven Way to Optimize Production and Reduce Costs in Mature Fields”. The technical group discussion is open for all member of SPE. The keynote speaker for this event is Beryl Audrey. Graduated in Petroleum Engineering major, Beryl Audrey start her journey as Field Engineer in Schlumberger. With experiences being Production Management, Asset Production Management, Bussiness Development, Senior Production Technologist from various fields, and instructor in Schlumberger, she delivered insights about integrated reservoir performance management.
Managing mature field with their unique complexity such as reservoir management, wellbore management, and aging facilities is challenging. By engaging O&G Service Companies and E&P Companies, both companies will work together to optimize the operating cost with an integrated contract. With this integrated contract, the E&P Companies or oil operator will have the access to digital technologies & technical expertise, workflow & governance process, asset management capabilities, cost optimization, and reputation.
There are three types of commercial models in this integrated contract and those are Operations Performance, Production Performance, and Bonus per Barrel. In the presentation, the speaker explained more about the Business Development Process. The Business Development Process started with screening where during the time, the service company will do portfolio fit of the project, sign NDA (Non-Disclosure Agreement), create scope of work, and create a budget. After the screening, the next step is evaluation where in this phase there will be conceptual FDP, sign the term sheet, do negatiation and discuss risk factors. The next step is negotiation and get approved agreement form and project memorandum. The last process is approval where there will be signed contract.
A case study example from Halwa Project in the Middle East were delivered. In this case, the data was limited and the focus was on asset/field review, in place calculation, possible development strategy, and coarse economic evaluation. The Halwa Project is 320km2 onshore giant mature oilfield and producing since 1932. With the mature and complex field, it took 4 months of evaluation duration with more than 15 seniors and principals engineers from various disciplines.
The field development workflow started with subsurface where the petrophysics and G&G will work together to create the new static model and calculate in place. After that, the RE will continue to the dynamic model while doing the production data analysis. Once finished with the dynamic model and conclusions from production data analysis, it came out the development strategy. The strategy was instead of focusing on the existing wells, they propose drilling. So they build new completion design for a number of wells while checking the surface facility. At the end, it came out with economic analysis.
Once the evaluation finished, the project went to negotiations and approval. It took more than 11 months of negotiations and more than 6 months of approval for the stages complexity of this project. The results of this project are the contract signed for two shallow reservoirs, committed to drill, stimulate, and complete 8 wells in 1st year and continue 12 wells in 2nd year for MAG reservoir, committed to pilot CSS with 1 year monitoring, rumination based on service fee and production, and dedicated JPMT for knowledge transfer. As of December, since the contract signed, they managed to improve operating cost per well up to 20%, increase 4x production/well vs historical production data, and contract extension for 238 wells under Production Management Scheme.
Based on this project, it can be concluded that a thorough screening and evaluation process is needed to minimize the risk. Integrated contract help O&G operator to access technology in fair market price, Schlumberger Integrated Project managed is proved approach to increase marginal field production and commercial model is hybrid, depending on the project and partner complexity.
During the technical discussion, participants had the opportunity to asked and discussed further about the material related to the speaker. At the end of the session, participants gained more insights about business development process on how to optimize production and reduce cost in mature fields with its complexity considerations.