R E S E R V O I R

M A N A G E M E N T

INTEGRATED APPROACH TO
PROJECT MANAGEMENT,
WAINWRIGHT WEST PROJECT
A fast-tracking, integrated approach to project management was used to develop a
new pool at Wainwright West, 200 km east
of Edmonton, Alberta, Canada. An integrated, multidisciplinary project team of
approximately 20 people from the areas of
geosciences, development, land, drilling,
completions, production, facilities, and
marketing was formed and managed by a
project manager.
The 13.4106-m3 Wainwright West oil
pool, covering approximately six sections,
was proposed for development in late
1996 after evaluation of a three dimensional (3D) seismic program. The pool
produces from the Sparky sandstone formation of Lower Cretaceous age at a depth
of 750 m. Use of 3D seismic was an important component in developing this play.
Subtle channel traps were identified that
were not resolvable with two-dimensionalseismic data but are capable of trapping
significant oil volumes. The 3D seismic
also decreases trap risk and dry holes as
well as providing for optimal facility
design and shortening project-development time.
The scope of the project was to drill, complete, equip, and tie in 350 slant oil wells
from 15 pads; to equip each pad with satellite facilities for gathering and testing; to
build a central oil battery, a water-injection
facility, flowlines, and solution-gas-handling
facilities for a total cost of Cdn $120 million.
RESERVOIR

The Sparky deposits are extensively dissected by contemporaneous and younger

tidal and fluvial channels of late Sparky,
Waseca, McLaren, or Colony age. These

This article is a synopsis of paper SPE

49064, An Integrated Approach to
Project Management, Wainwright West
Project, by Mohamud Zaver, SPE,
PanCanadian Petroleum Ltd., prepared
for the 1998 SPE Annual Technical
Conference and Exhibition, New
Orleans, 2730 September.
78

channels form the trapping mechanism for

the hydrocarbons.
The reservoir properties generally are
good and homogeneous, with porosity
averaging 30% and permeability of approximately 200 md. Average net pay is 4 m and
the oil gravity is 0.934 g/cm3. On the basis
of economic parameters, the optimal development spacing is 4 ha, and the ultimate
recovery factor under waterflood is estimated at 40% of the original oil in place.
Because of the low gas/oil ratio of 25
m3/m3, pressure maintenance is necessary
almost immediately after production starts
to maintain reservoir drive and productivity. The initial waterflood pattern is an
inverted nine-spot pattern, with conversion
to a line-drive pattern a few years later.
Makeup water for water injection is
obtained from lower formations. Average
per-well productivity is 5 m3/d, and field
decline rates average 5%/a.
DEVELOPMENT CONCEPT

Optimal development uses pad drilling

with slant rigs. Pad slant drilling allows as
many as 30 wells/pad. It also provides lower
capital costs because of fewer leases, lease
roads, and gathering facilities; lower operating costs; economies of scale and greater
efficiencies of working on pads; improved
reservoir access in areas with difficult surface topography; smaller environmental
footprints and surface disturbance; and
shorter time to put wells on production. A
star-shaped pattern was used that allowed
for a compact wellsite with maximum reach
and the flexibility to add future wells. The
design was used as a template, reducing
engineering-design time and avoiding
potential wellbore collisions. Fig. 1 shows
the area layout for the wells and pads.
Another development consideration was
the requirement to perform a small skin
fracture stimulation after perforating, with
10 Mg of fracture sand and lease crude as
the carrier fluid. The oil producers and
water-source wells use insert progressingcavity pumps with continuous-rod, electric
top drive units and tubing rotators. The

Fig. 1Pad and well layout.

producers at each pad are tied into a satellite testing package, then group flow lined
to a central battery facility for treating,
storage, and sales. The produced water
from the wells and the makeup water are
sent to the water injectors on each pad
from a central water-injection facility located at the battery. Solution gas is conserved
by compressing and processing at a gas
plant located beside the battery before
entering a sales gas line.
PROJECT MANAGEMENT

An integrated project team comprising the

different functional groups, under the
direction of a project manager, was assembled to execute the project effectively. The
project manager oversees the entire project
to ensure effective and ongoing communication within the team and with management, to coordinate and facilitate the decision-making process, and to ensure proper
planning and risk assessment.
The project kickoff meeting explained
expectations and purpose and established the
project description and team operating rules,
roles, and responsibilities. A detailed planning
session followed to discuss project deliverables, budgets, cost estimates, activity duraDECEMBER 1998

R E S E R V O I R

M A N A G E M E N T

Fig. 2Simultaneous operation of two slant service rigs on a single pad.

tion, links between activities, critical path,

risk assessment, resources, and timeline.
During the project-execution stage, the
team was encouraged to understand, participate in, and carry out their subprojects
by use of project-management techniques.
Team members were motivated to contribute actively in all areas of the project,
not just in their own functional area. Many
ideas and savings were realized as a result.
Decisions were made with the entire project
cycle considered and with potential implications in other areas understood. For
example, if potential savings in cementing
practices might result in increased
workover costs, the decision would be to
revisit the cementing program and not
make the suggested changes.
Team dynamics play an important role in
how smoothly any project proceeds, and
this project was no exception. To conduct
efficient and effective meetings, key team
members from the operational functional
groups attended all meetings. Other
groups, such as marketing or geosciences,
would attend when issues specific to their
respective areas were being discussed.
Another ingredient in the overall success of
the project was the strong relationship
developed between office and field personnel. Communication between the two
groups was encouraged, and the necessary
information and decisions were communicated on a regular basis between the
groups. This teamwork brought about new
approaches, ideas, and innovations that
resulted in the team developing an effective
working relationship.
Monitoring progress is an essential
component of project management. Only
by knowing what has been completed and
what is still outstanding can the project
80

team reassign resources if necessary.

Effective communication was the key, and
regular, brief, biweekly project-update
meetings were held by means of videoconference between the field- and head-office
staff with appropriate minutes. Assigned
action items were instrumental in achieving this objective. These meetings also
kept team members informed about project progress and issues. The collective
expertise of team members could be used
to determine solutions, and the discussions gave everyone an opportunity to
evaluate the viability of potential solutions. The meeting notes were also useful
in keeping the project sponsor and other
stakeholders informed about project
progress and status. Informal meetings of
the project manager with each team member to discuss progress and provide clarification on issues in his or her area were
held on a regular basis. This enabled the
project manager to identify potential problems and to help team members determine
a solution earlier.
A formal lookback on the project at the
end of the first phase was also instrumental in providing knowledge for the next
phase. Knowledge was garnered from
mistakes or as a result of doing something
very well. Both were identified on this
project. The knowledge was captured and
used to plan and execute the second
phase of the project to realize further savings and efficiencies.

m3/d by the end of 1998 once waterflood

response is seen.
Successes were realized in every area of
the project and include the following
highlights.
Optimized pad design and size and
well count of up to 30 wells/pad.
Prebuilding of pads during optimum
construction weather.
Use of two slant-drilling rigs at the
same time on a pad, resulting in efficiencies
and earlier production-start dates.
Preset of surface casing to reduce
drilling downtime.
Increase in fracturing jobs from 3 to 14
wells/D.
Use of four slant service rigs on one
pad to speed up operation and provide efficiencies. Fig. 2 shows a pad with two slantservice rigs operating simultaneously.
Fit-for-purpose skid designs and use of
temporary water-injection facilities to
implement the waterflood scheme concurrently with production start.
Concurrent completion/facility operations on pads to improve production-start
dates.
CONCLUSIONS

An integrated approach to project management was instrumental in achieving

success for the Wainwright West project.
This integrated, fast-tracking approach
resulted in production on stream 2
months ahead of the original schedule and
10% below cost estimates. Key success factors include the following.
Initial detailed planning and projectscope definition.
Regular, effective communication between team members.
Understanding of roles, responsibilities, and expectations of team members.
Alignment of team-member goals with
project goals.
Team commitment and formal change
process.
Encouragement of team members to
contribute actively in all areas of the project, not just in their own functional area.
Project-manager role of facilitating
decisions rather than making all decisions.
Regular update meetings and minutes
with action items.
Project lookback process and acquired
knowledge applied to the next phase.

RESULTS

Project costs were 10% below the original

budget estimates, and the first pad was on
production 2 months ahead of the original
schedule. Oil production is more than
1000 m3/d and is expected to reach 1200

Please read the full-length paper for

additional detail, illustrations, and references. The paper from which the
synopsis has been taken has not been
peer reviewed.
DECEMBER 1998