SPE ascot RESERVOIR MANAGEMENT KEY PERFORMANCE INDICATORS
should tie revisited at least every three to four years to
determine present status and arrest any deviation from its
expected performance.
4. Drilling and Production Plan
This plan defines the basic well design to drill and complete
the discovers. appraisal and development wells properly and
efficiently. The plan should be translated into programs that
address all aspects of well drilling, completion. production and
abandonment practices. Moreover. appropriate section for
detailed data acquisition should be included in line with data
acquisition master plan. Also. detailed cost estimation for
drilling, completing and future abandonment of the wells
should be included. Thus will enable drilling and completion
professionals to properly monitor and cost control this phase
of reservoir management process.
S. Surface Facilities Plan
This plan defines the total system of all moving and stationary
equipment used to efficiently control and direct the oil and gas
production from well head to custody transfer point. Also.
water production and injection should be controlled and
directed to appropriate disposal or injection points.
First the surface facilities should be properly identified so
that a preliminary feasibility study along with its cost
estimation can be made for the various possible different
alternatives. Secondly. provisions should be made for the
surface facilities preliminary design and execution procedures
Thirdly. project execution will commence with detailed design
along with a timetable for all activities inclusive of hand-over
Then this is followed by procurement. the fabrication of all
required equipment and the construction of needed structures.
In addition to the above scheduling, installation.
conunissioning and hand-over, the plan should be designed
properly to meet the target dates. Surface facilities plan will
not be completed without making provisions to continue to
monitor and cost control the actual expenditure in relation to
previously prepared cost estimates. Any deviation and in
particular cost over-run should be identified and reviewed for
proper actions. Plans should include properly spaced
inspection of all surface facilities to identify any deviations in
performance and/or operational problems so that remedial
actions be implemented. if required. to maintain the surface
facilities in operative conditions and in accordance with its
designed specifications.
6. Operation and Monitoring Plan
The purpose of this plan is to stipulate the operational and
monitoring procedures to ensure that the reservoir and
production operations surveillance is carried out properly.
This plan should also define in details the data gathering and
their frequency from the wells. reservoir, surface facilities and
cost factors
Accurate production toil/garewaterl. bottom hole pressure
and production-logging measurements arc of utmost
importance. The use of such data is needed to determine
average reservoir pressure. productivity, permeabil its and
formation damage extent. For water injection projects accurate
injection rate and pressure measurements. injectnity and fall
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off pressures along with injection profile are needed to
monitor the flood front advance through the reservoir.
7. Economic Evaluation Plan
To appreciate the above plans and their economic values, it is
imperative that such plans collectively be subjected to
rigorous economic evaluation to determine the discounted
present cash flow value, its payout time and the rate of return
on the investment. However. the economic evaluation efforts
should be revisited when reservoir development studies are
revisited to incorporate any refinement in predicted production
performance. various remedial actions and any addition of
capital and operation costs.
Economic evaluation always incorporates the impact of oil
and gas prices along with the equipment and senices. price.
cost escalation and operating cost that are reviewed
pcnothcally. Other economic factors such as taxes. royalty
and depreciation updates arc required to reflect current
impacts on economic evaluation.
Cost control procedures should be addressed and stipulated
in the economic evaluation plan. nevertheless. its practice m
diligent fashion throughout the reservoir's productive duration
should be stressed.
Reservoir Management Key Performance Indicators
It is rare to find in the literature any documented examples of
mismanaged reservoirs. In fact when such conclusion becomes
a fact. responsible staff and management officers move rather
swiftly to cover it up and attempt to stop the spread of the
misdeeds. Nevertheless, there arc many resenoirs throughout
the World and in particular in our Asia Pacific region that can
be identified to be mismanaged reservoirs.
To evaluate the effectiveness of the reservoir management
process. a grading system has been devised to facilitate such
determination. The Key Performance Indicators (KPIs) are
listed below to correspond to the seven component of reservoir
management process.
I- Synergy Team Plan, (SFKPI)
2- Data Acquisition Plan. (DAKPI)
Reservoir Development Plan. (RDKPI)
3-
4- Drilling and Production Plan. (DPKPI)
5- Surface Facilities Plan, (SFKPI)
6- Operation and monitoring Plan. (OMKPI)
7- Economic Evaluation Plan. (EEKPI)
Recognizing that reservoir management process is an
integrated and multidisciplinary process. when any component
becomes ineffective or missing, then the whole system will
experience some kind of a breakdown. In other words the
above components of reservoir management process should be
evaluated and graded separately. Therefore, it is not
appropriate to average them in order to produce a single value
indicator. When weakness exists in one component. it can not
be substituted or strengthened by another component due to
the unique integrity of each component
On the other hand each of the above key performance