Note: Group Exercise Production Optimisation As already mentioned in class, the suggested division of work for each team

m may be as follows, depending on the number in a team (10 or 11): 1. Team Leader (and integrator): 1 person 2. Geoscience (geophysics, geology, petrophysics) 3. Reservoir Engineering (general analystic and reserves, MBAL): 2 persons 4. Well Engineering and Optimisation: 4 persons 5. Facilities Engineering: overall facilities selection, subsea equipment and configuration, and process selection and optimisation: 2 persons 6. Economics: 1 person My suggestions for the next level of detail are as follows: Geosciences o Literature review is important (list of possible references attached) and to assist reservoir and drilling engineering Reservoir Engineering o Review rock and fluid properties o Probabilistic reserves estimation (see additional data uncertainty ranges) o Recovery (factor) calculations o Coning/cusping calculations o Material balance calculations, including drive indicators o Displacement calculations, including ratios of forces to identify the type of flow o Check out IPR relationships and other productivity relationships that may be suitably used in well performance optimisation modelling Well Engineering Optimisation (using PETEX software, except first item) o Drilling and completion design in general o Determination of optimum tubing size o Then add subsea pipes to note the difference and perform final optimisation o Sensitivities with and without flow restrictions in tubing o Setting up of appropriate tank model after conducting sensitivities to find the most appropriate type of models o Gaslift optimisation to determine optimum rates per well over the lifetime (including watercut); again production profiles for oil, water and gas o Sensitivities to surface operating conditions to determine optimum, in conjunction with optimum yield (process consideration) o Use of various, more advanced options (different IPR relationships, relative permeability, modelling of coning) o Production from each well (and total field) over the lifetime (without gaslift base case), including oil, water and gas production profiles, including tank model and surface system o Production from each well (and total field) over the lifetime (now with optimum gaslift), including oil, water and gas production profiles, including tank model and surface system o All kinds of sensitivities, including aquifer performance and OIIP/GIIP o Well costs for economics

Facilities Engineering Overall facilities selection, subsea equipment and layout, process selection and optimisation (may involve research using literature/internet) o Decision tree (by considering all types of facilities) to show that an FPSO is the optimum facility o Considerations of whether to own or lease the facility; whether it is new-build or a converted tanker o Describe the main features of the FPSO (including type mooring-riser, size of vessel etc.) and reasons for final selections o Description of subsea equipment and purpose and reasons for selection; subsea layout (and optimisation) o Process: description and summary of function, optimum selection and reasons o Could include safety aspects o Costs for a couple of key facilities options for economics o Costs for subsea system o Installation costs (subsea and facilities) take $100 million ($US-AU$) o Operating costs (for FPSO owned option) assume $40million per annum o Overall project schedule Economics o Overall project economics base case and sensitivities (particularly regarding owning or leasing an FPSO) o Evaluation of benefit of gaslift I will have some more guidelines on costs after you have given it some thought. Before meeting again, I would like to receive an update from all PMs, addressing the following: o Final team roles o Meetings held and key outcomes (brief summary) o Additional data requirements/question/comments