Disclaimer: The information contained in this (and its associated) document/data is to be used only as a case

study example for SPE Annual Industry Institute Interaction Programme (AIIIP) 2017. The information in the
case study is both factual and fictional. Schlumberger assumes that the case study would be used only for
the event purpose and will be distributed among the participating teams only. No information should be
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SPE Annual Event Case Study, MIT Pune, 2017

Introduction

Smart Oil Ltd. is an oil and gas company conceived in the year 1991. Over a short period of
roughly 2 decades, with a couple of major discoveries and profitable investments, the
company has grown by leaps and bounds. As of today it has 3 blocks in 2 countries and a net
worth of over US $ 15 Billion. SMART OIL LTD. has been able to endure the global economic
downturn in 2008 with substantial improvements in their exploration and development
strategy. In the current scenario of lower prices of crude oil, SMART OIL LTD. has decided to
minimize their exploration budget significantly and shift their focus from finding new reserves
to effectively extract the current known reserves.

Alsace field, off the coast of OFS Sea, is a highly prospective asset of SMART OIL LTD. with
an OOIP estimation of ~80 MMscm3. It has been producing oil for the past 10 years now with
a net recovery of 28% as on 31 Dec 2016. The asset is a 36 API oil reservoir with low GOR
(10-13.5 m3/m3). The reservoir comprises of sequences of sand, silt and shale and has 8
main layers. Currently, 11 producers and 8 injectors in the field are producing 3000 m3/d with
over 66% water cut. The trap has been identified as a simple anticline structure. Two faults
have crossed the reservoir splitting it into 3 main blocks. The main North-South fault is
crossing the entire reservoir while the East-west fault is truncated west of the main fault.
SMART OIL Ltd. wants to devise a production enhancement strategy for the Alsace field.
This is important to continue the ongoing contract with the Government and fulfill production
targets. Your team is expected to present before a team of government officials, partner
companies and investors which will determine the future of SMART OIL Ltd. in Alsace. The
strategy is expected to be supported by technical and financial arguments wherever
necessary.

Present team composition is expected to have atleast one participant each from 2nd, 3rd and
4th year with a maximum of 5 members.

Expected clarifications:

1. What is the current average reservoir pressure?

2. Are the reservoir blocks hydraulically connected?
3. Are the clay/shale layers deposits extensive? Vertical communication?
4. Suggest strategies for production enhancement considering possibilities of hydraulic
fracturing, acidizing, water shut-off treatment, Artificial Lift (other than the one existing)
etc. Ranking of the wells should be supported with (but not limited to) incremental gain in
oil rate.
5. Considering the overall high water-cut of the field, recommend suitable steps (and
potential services/tools/techniques) to identify and cope with this issue.
6. Keeping the future energy growth in mind, suggest the best possible location for drilling
the next well.

Data Available

1. Well logs, Layer tops, Production history, Well test data, Gradient survey data and other
well information
2. Alsace Overview pdf

Suggestions:

1. Read and know more about the different workover operations including but not limited to
water shut-off operations, hydraulic fracturing, acidizing, re-perforations and Artificial lift
technology available today.
2. Plotting of log data and using nodal analysis using industry standard software.
Submission of solutions:

1. Submit the solution in a 2 page writeup showing few indicative numbers to Siddharth
Mishra (smishra8@slb.com), Shaktim Dutta (sdutta2@slb.com) and cc to Samarth D.
Patwardhan, Associate Professor, MIT, Pune (samarth.patwardhan@mitpune.edu.in)
2. Subject of Mail: MIT Case Study Entry Team Name
3. For doubts if any: Email to smishra8@slb.com (Please mail only after you have
made sufficient assumptions for missing data). Mail with the team name in subject of
mail is suggested.
4. University representatives will be conveying the timeline of the case study.
5. Early submission would fetch brownie points!!