Theme: "Attaining Optimal Production and Profitability in the Development of Marginal Fields: Spotlight on Commingling, Challenges and Best Practices for Hydrocarbon Management”
- In the light of the current economic realities facing the business environment of the oil and gas industry which has seen a significant drop in global oil prices, International Oil Companies, Independent Producers and Marginal Field Operators in Nigeria are collaborating and adopting innovative and smarter ways of doing business. Optimizing available resources has the potential for cost savings and can guarantee value. One of such means of optimizing resources to improve economic prospects and extract more value from assets is through comingled production (either subsurface, surface or at facility level). It presents an opportunity to produce multi-zone, wells, or fields through a common facility (owned or leased). Commingling may occur at any point in the development phase from initial design and drilling, through recompletion/work-over, following field decline or field optimisation at late life all in a bid to maximize the total recoverable hydrocarbons from the Field.
- The issue of commingling reservoirs for production optimization purposes has been a hot-button topic and keenly debated one in the industry over the last several years. This is mainly because most of our reservoirs are thin with limited lateral extent, making the individual production of any single one of them uneconomic. The drop in oil price from circa $110/barrel in July 2014 to as low as $40/barrel in 2016 and currently hovering around the $52/barrel mark has made the case for commingled production more compelling.
- This workshop is aimed at providing the industry and regulators a common platform to exploit and debate commingling technology as it relates with the available guidelines and regulation in Nigeria, compare best practices in other parts of the world and present a joint industry report (technical communique) that will influence the review and update of the regulatory guidelines in Nigeria. This is to enable the industry use the available technology to ensure maximum production to enhance and maximize shareholder value.