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Typical steps in an offshore hydrocarbon field

Oil & Gas Field development
Development CHALLENGE 1
INPUTS RESERVOIR

Economics
EVALUATION
RESERVOIR DATA
ECONOMIC DATA CHALLENGE 2
DESIGN BASIS
SITE DATA
EXISTING INSTALLATIONS
ETC.

RESULTS
KPIs CHALLENGE 3
NET PRESENT FACILITIES AND
VALUE, IRR, UTC etc CONCEPT SOLUTION

CHALLENGE 4
PROJECT
EXECUTION PLAN

Challenge 1 EVALUATION How to estimate oil in place.

Type of reservoir Recovery factor.
Pressure-Volume-Temperature (PVT) describes
Porosity Production Profile
the physical property and phase behaviour of
Permeability Drilling schedule the hydrocarbon mixture.
Pay zone Hydrocarbon quality Identification of potential solids problems
Drive mechanism. Knowledge points Measurement of viscosity for fluid mobility
GOR, compressibility and shrinkage data for
reservoir
Recovery estimates

Challenge 1 Reservoir Evaluation

The porosity of a rock is a measure of the Porosity

storage capacity (pore volume) that is capable
of holding fluids.
Porosity value Classification [%]
05 insignificant
510 poor
1015 fair
1520 good
> 20 excellent

Porosity Challenge 1 Reservoir Evaluation

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Permeability Permeability
The permeability is a property that expresses the
capacity of the porous medium to transmit fluids.
It is a dynamic variable Measured in millidarcy Permeability value Classification [mD]
Greater permeability, in general, corresponds to greater 110 poor
porosity, but this not an absolute rule 10100 good
Permeability is not necessarily the same in all directions.
1001000 excellent
In general, the horizontal permeability is greater than
vertical

Challenge 1 Reservoir Evaluation Challenge 1 Reservoir Evaluation

Pay zone
The thickness of a portion of a reservoir that
contains economically producible hydrocarbons.
To determine the height of the pay sand, well logs
are performed with instruments (called sondes)
which are lowered down the borehole on armored
electrical cable (called a wireline).
Sometimes also called wireline logging
Logging determines several paramenters e.g.
Gammaray and Resistivity log

Challenge 1 Reservoir Evaluation Pay zone

Pay zone The drive mechanism is defined as Natural forces in the

Gamma ray log: reservoir that displace hydrocarbons out of the reservoir
A common and inexpensive measurement of into the wellbore and up to surface.
the total natural radioactivity, measured in API
units. The measurement can be made in both
openhole and through casing. Shales and clays Each reservoir is composed of a unique combination of
are responsible for most natural radioactivity, geometric form, geological rock properties, fluid characteristics,
so the gamma ray log often is a good indicator and primary drive mechanism.
of such rocks It has been observed that each drive mechanism has certain
typical performance characteristics in terms of:
Resistivity log:
Ultimate recovery factor
A log of the resistivity of the formation,
Pressure decline rates
expressed in ohm-m. The resistivity can take a
Gas-oil ratio
wide range of values, and, The resistivity log is
fundamental in formation Evaluation because Water production
hydrocarbons do not conduct electricity while
all formation waters do
Drive mechanism

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Well Completion
An optimized performance analysis of the total producing
system from the reservoir rock through the completion,
well bore and gathering system is presented to the
participants. They have the task to choose the size of the
tubing to determine the most suitable well production
rate.
3 1/2 tubing
5 1/2 tubing
P Res

FBHP
IPR

PRODUCTION BENEFIT FROM INCREASING TUBING SIZE

Q (3 1/2) Q (5 1/2)
Rate

Challenge 1 Reservoir Evaluation

Well Completion Secondary recovery/Injection

The injection of either water or gas into the reservoir is usually
The tubing size will affect the following among others: referred to as secondary recovery.
The aim of the secondary recovery is to balance the withdrawn
fluids and in that way maintain reservoir pressure..
Less or more production

Well intervention due to sand production

Excessive pressure drops can generate tubing failures

Challenge 1 Reservoir Evaluation Challenge 1 Reservoir Evaluation

Secondary recovery/Injection
In general water flooding generates an increment in the recovery factor
greater than gas injection.

If the formations permeability is low water injection rate will be low as

well, so gas injection is preferred

If brine has to be disposed water injection will become useful to

reinject it.

Availability and marketability of the gas have to be considered if this

fluid is worth to be use in a reservoir maintenance program.

Gas Injector wells are usually less in quantity comparing to water

injectors, but water pumping systems are cheaper than gas
compression systems.

Challenge 1 Reservoir Evaluation Results

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Results
First oil: Fields are assumed to start production at the
time given in the latest available execution plan.
Production: fields are assumed to ramp up to
plateau/peak production rapidly. First year production is
calculated from when during the year the field is supposed
to go on stream. Eventual later tie-backs are assumed to
come on stream at the time given and to keep the plateau
level until decline sets in.
Plateau/peak level: Any information on plateau/peak
level is used usually represent economically a % of the
reserves. If no such information exists an estimate based
on the production capacity of the existing production unit is
made. The peak level is assumed to be constant until the
decline phase sets in.
Results Challenge 1 Reservoir Evaluation

Results Challenge 2 DESIGN

Decline: The decline phase sets in when prior production Site conditions
plus production during decline exceeds the best reserve
Environmental conditions Design constrains
estimate with 10 per cent. The decline is assumed to be
about 20 per cent annually, and this illustrates the Financial and economics Knowledge points
operators will to keep the fields at plateau levels as long as Fluid processing capacities
possible. Facilities requirements
Reserves : Numbers on proven plus probable reserves are Operational strategies
used whenever the information is available. If information
on oil in place is given, the most optimistic estimate of the
recovery factor from the operator is used. Eventual upsides
on reserves are included.

Challenge 1 Reservoir Evaluation

The design basis is one of the most This data it is mainly use by process
important document in an engineer engineers to design equipments and
design. pipelines regarding flow assurance and
heat and mass transfer.
It will provide all necessary information to
avoid misunderstanding between the
technical departments involved.

It will provide all the technical boundaries

and capabilities for the installation design.

Challenge 2 Design basis Site conditions

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To define the environmental condition of the

place were the development will take place, in
order to choose the most suitable installation to
face potential hurricane, earthquakes risk,
among other factors.

Hurricane map Earthquake map

Environmental conditions Environmental conditions

Financial and economics

In this part it will be established all the premises
to perform an economical Evaluation of the
development proposals.
Product for sale
Sales prices
Taxes
After Lillie hurricana
Investment incentives
The surveys to be used are named Market
statistics

Typhoon, after Rita hurricane

Environmental conditions Challenge 2 Design basis

Financial and economics Financial and economics

Reference sales products
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10+
Brent for north sea
Oil stable West Texas for US Gulf
Oil unstable

stable Condensate The field product sales price

unstable Condensate will depend on:
LPG 1. Market consumption
NGL 2. API,
Rich gas
3. Contaminants,
Sales gas and LNG
4. sulphur,
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10+
5. asphaltene
HYDROCARBONS AND SALES PRODUCTS 6. Field Location and
7. others

Challenge 2 Design basis Challenge 2 Design basis

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Fluid processing capacities and facilities Operational strategies

Will determine the process equipment to Will determine which existing

installation can be used to reduce
process and conditioning the capex (capital expenditure)

hydrocarbons. Will determine the country risk were

You should look at the result in ch1, and the development is going to be
carried out.
existing facilities surveys

Challenge 2 Design basis Challenge 2 Design basis

Challenge 3 SOLUTION Choose the right

Identify the concept installation,
Concept Solution
solution according to risk,
Type of structures
Place the structures and technical
CAPEX investment
Place the sub sea systems capabilities.
Knowledge points
Connect elements

Challenge 3 Concept solution

The concept solution will depend on many Field development options

factors:
Distance to existing infrastructure

Environmental conditions Field size , distance

Mobile to existing available
Operational criteria production
infrastructure or
system Permanent stand-alone
Limited availability of construction sites. development
land, and seabed
Subjective preference of an owner/operator under depth are governing
certain circumstance like country risk and factors
operational experience.
Satellite
development

Extended Reach Drilling

Recoverable reserves

Challenge 3 Concept solution Challenge 3 Concept solution

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In a field development, the structure for use Fixed Platforms:

offshore are constructed as a drilling Sit on the sea floor.
platform and will also be used as a production They are held in place either by the total weight of the
platform. structure or by steel piles driven into the seabed and
attached to the structure.
The group include:
The structure will act as a stabilizer and jackets,
conditioning for the well production above the jackups,
ocean floor. gravity based structures,
compliant towers and its variations.

Flowline risers, helicopter landing pads, and

mooring facilities for crew boats and supply
boats are necessities that must be supported by
the structure.
Challenge 3 Concept solution Challenge 3 Concept solution

Floating systems:

Number of wells
The topsides are similar to the fix platforms, nonetheless
because they are floating structures they have to be
moored in place with tendons or wire ropes and chain in
order to stay connected to the subsea systems below Fixed
platforms
and not be drag by sea draught.
TLP, Spar
The group include: Dry trees
Tension leg platforms,
20
Spar,
Floating production storage and off loading ships,
Semi submersibles platforms Floaters
10 Wet trees

500 m Water depth

Challenge 3 Concept solution Challenge 3 Concept solution

Example:
36 wells
9 well clusters
3 tie-back systems

Offshore installations capabilities Subsea layout

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Sub Sea elements Subsea elements

Export pipelines
Import pipelines
Hydraulic pipes
Electrical and signal wires

Subsea elements Challenge 3 Concept solution

Development option
Tie Back to an existing platform:
The investment is reduced using the spare capacity in the
existing platform. It is a very suitable option for
small developments.
Offshore to beach development:
In this case onshore facilities are available, multiphase
production can be transported to the shore to process it. It
is a good option to reduce capex when distances to shore
are short.
New Stand alone development:
When there are no existing installation and the recoverable
reserves are large or the distance to shore is too far, New
stand alone development can be considered using the
platform that is most suitable for the surrounding
conditions.

Challenge 3 Concept solution Challenge 3 Concept solution

Process required in the platform Process required in the platform

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Challenge 3 Concept solution Artic condition

Order the activities

Challenge 4 EXECUTION Select the right
Activities Plan provider to accomplish
Execution plan
Activities providers and your schedule
Net present value Use your common
contractors
Other KPIs sense.
Cycle closure and
technical results.

Challenge 4 Planning the excecution

Planning the execution

You may use

the common
sense

But.. That is the

less common of
the sense.

Is not just the money, you have to do

Challenge 4 Planning the excecution Results the right things.