PetroFirst




Raising Reservoirs : A Techno-Managerial Approach

Sunday, October 07, 2012   Neelendra Nath, PetroFirst   1
Content
                               Introduction
                               Reservoir Management – Team & Process
                               A Technological Approach
                               Self Learning Reservoir Management
                               MPC & NPV Optimization
                               Case Study
                               Conclusion




Sunday, October 07, 2012            Neelendra Nath, PetroFirst    2
Did you know…?
 “ About 70% of crude oil production on the global scale comes from matured
 fields more than 30 years old and recovery from these fields are only 30-40%.
 Further, Reserve depletion from producing assets have always outpaced the
 reserve accretion from new fields. ”




 Sunday, October 07, 2012      Neelendra Nath, PetroFirst                    3
Reservoir Management
                                             Data
                                         •   Geological
                                         •   Geophysical
                                         •   Engineering              Tools
                                         •   Financial
                                                                      • Seismic Interpretation
             Technology                                               •   Tomography
                                                                      •   Data Acquisition
             •   Seismic                                              •   Logging/Coring
             •   Geologic                                             •   Completion & Facilities
                                                   Integration        •
             •   Geostatistics                                            Geologic Modeling
             •   Engineering                                          •   Pressure Transient
             •   Drilling & Completion                                •   Fracturing
             •   Enhanced Oil Recovery                                •   Reservoir Simulation
             •   Computer                                             •   Enhanced Oil Recovery
                                                   People             •   Computer Software &
                                                                          Hardware
                                             •   Management
                                             •   Geoscientists
                                             •   Engineers
                                             •   Land/Legal
                                             •   Field
                                             •   Financial


  Sunday, October 07, 2012               Neelendra Nath, PetroFirst                                 4
Reservoir Management

                                 Objectives
                             Decreasing Risk

                             Increasing Production

                             Maximizing Recovery

                             Minimize Capital Expenditure

                             Minimizing Operating Cost

                             Maximize Profitability
  Sunday, October 07, 2012       Neelendra Nath, PetroFirst   5
Management Team
                                                Management           Geology &
                                 Legal                               Geophysics


                                                                            Reservoir
                        Land                                               Engineering


                                                                                  Economics
                Environment
                                                 Reservoir
                                                Management
                                                  Team                              Drilling
                                                                                  Engineering
                  Services
                                                                               Design & Construction
                                                                                    Engineering
                        Research &
                        Development
                                                                   Production & Operation
                                                                        Engineering
                                      Gas & Chemical
                                       Engineering
 Sunday, October 07, 2012                   Neelendra Nath, PetroFirst                                 6
Management Team




 Sunday, October 07, 2012   Neelendra Nath, PetroFirst   7
Management Process
                                            Setting Strategy


                                           Developing Plan


                                             Implementing
                             Revising
                                               Monitoring


                                               Evaluating


                                               Completing
  Sunday, October 07, 2012              Neelendra Nath, PetroFirst   8
Management Process




                             Revising




  Sunday, October 07, 2012              Neelendra Nath, PetroFirst   9
A Technical Approach

             Why is it
            required ?       How it
                             works?




  Sunday, October 07, 2012   Neelendra Nath, PetroFirst   10
Self Learning Reservoir Management
                                [ qok qwk qgk ] = [ 1 p-k pwfk (pwfk)2] Matrix3x3 [ a, b, c]

                                [(p^)k] = [ d0 d1 d2 d3 d4 d5 ][ 1 ṕk-1 q0k-1 qwk-1 qgk-1 qwik-1 ]T

                     Parametric
                     Fluid Flow
                      Modeling



         NPV
     Optimization


                               Model
                             Predictive
                              Control
  Sunday, October 07, 2012                Neelendra Nath, PetroFirst                            11
Model Predictive Control



                              Process model for                                      Online
                                                           Computation of
Class of Computer             online prediction                                 optimization of a
                                                         appropriate control
Control Algorithm               of future plant                                cost objective over
                                                               action
                                  behaviour                                     a future horizon




              ỹqk+t|k = ∑(i=1 to nU)∑(j=1 to p)(hijq)( uik-j+t) + dqk|k

   Sunday, October 07, 2012              Neelendra Nath, PetroFirst                         12
NPV Optimization
    Linear Programming optimization routine is use to find optimum solution.




 Assumption : Future reservoir behavior is described by current
 model(Certainty Equivalent Principle)

  Sunday, October 07, 2012      Neelendra Nath, PetroFirst                  13
Conclusion
   1.     A team approach based on integration of geosciences and engineering
          personnel, tools, technology and data is essential for sound reservoir
          management practice.

   2.     A better understanding of integrated approach and technology can be
          beneficial to geoscientists, engineers, field operations staff and
          managers.

   3.     Technological advances and computer power are providing the tools to
          manage reservoir better to maximize economic hydrocarbon recovery.

   4.     A multi-level self adaptive reservoir management strategy work
          wonders in term of increasing recovery factor and optimizing
          economics.


  Sunday, October 07, 2012         Neelendra Nath, PetroFirst                      14
Reference & Further Reading

 • Thakur, G.C.: “Reservoir Management- A Synergistic Approach.” paper SPE
   20138 presented at the 1990 SPE Permian Basin Oil and Gas Recovery
   Conference, Midland, March 8-9
 • Wiggins, M.L.: A Manual of Petroleum Reservoir Management, Crisman
   Institute for Petroleum Management, Dept. Of Petroleum Engineering, Texas
   A& M U.(May 1989)
 • Satter, A.: “ Reservoir Management Training- An Integrated Approach.” paper
   SPE 20752 presented at the 1990 SPE ATCE, New Orleans, Sept. 23-26
 • Thakur, G.C.: “Implementation of Reservoir Management Programme.” paper
   SPE 20748 presented at the 1990 SPE ATCE, New Orleans, Sept. 23-26
 • Satter, A. et al.: “ Integrated Reservoir management,” paper SPE 22350
   presented at the 1992 SPE International Meeting on Petroleum Engineering,
   Beijing, China, March 24-27


  Sunday, October 07, 2012     Neelendra Nath, PetroFirst                 15

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Raising Reservoir - A Techno-Managerial Approach to Reservoir Management

  • 1. PetroFirst Raising Reservoirs : A Techno-Managerial Approach Sunday, October 07, 2012 Neelendra Nath, PetroFirst 1
  • 2. Content  Introduction  Reservoir Management – Team & Process  A Technological Approach  Self Learning Reservoir Management  MPC & NPV Optimization  Case Study  Conclusion Sunday, October 07, 2012 Neelendra Nath, PetroFirst 2
  • 3. Did you know…? “ About 70% of crude oil production on the global scale comes from matured fields more than 30 years old and recovery from these fields are only 30-40%. Further, Reserve depletion from producing assets have always outpaced the reserve accretion from new fields. ” Sunday, October 07, 2012 Neelendra Nath, PetroFirst 3
  • 4. Reservoir Management Data • Geological • Geophysical • Engineering Tools • Financial • Seismic Interpretation Technology • Tomography • Data Acquisition • Seismic • Logging/Coring • Geologic • Completion & Facilities Integration • • Geostatistics Geologic Modeling • Engineering • Pressure Transient • Drilling & Completion • Fracturing • Enhanced Oil Recovery • Reservoir Simulation • Computer • Enhanced Oil Recovery People • Computer Software & Hardware • Management • Geoscientists • Engineers • Land/Legal • Field • Financial Sunday, October 07, 2012 Neelendra Nath, PetroFirst 4
  • 5. Reservoir Management Objectives Decreasing Risk Increasing Production Maximizing Recovery Minimize Capital Expenditure Minimizing Operating Cost Maximize Profitability Sunday, October 07, 2012 Neelendra Nath, PetroFirst 5
  • 6. Management Team Management Geology & Legal Geophysics Reservoir Land Engineering Economics Environment Reservoir Management Team Drilling Engineering Services Design & Construction Engineering Research & Development Production & Operation Engineering Gas & Chemical Engineering Sunday, October 07, 2012 Neelendra Nath, PetroFirst 6
  • 7. Management Team Sunday, October 07, 2012 Neelendra Nath, PetroFirst 7
  • 8. Management Process Setting Strategy Developing Plan Implementing Revising Monitoring Evaluating Completing Sunday, October 07, 2012 Neelendra Nath, PetroFirst 8
  • 9. Management Process Revising Sunday, October 07, 2012 Neelendra Nath, PetroFirst 9
  • 10. A Technical Approach Why is it required ? How it works? Sunday, October 07, 2012 Neelendra Nath, PetroFirst 10
  • 11. Self Learning Reservoir Management  [ qok qwk qgk ] = [ 1 p-k pwfk (pwfk)2] Matrix3x3 [ a, b, c]  [(p^)k] = [ d0 d1 d2 d3 d4 d5 ][ 1 ṕk-1 q0k-1 qwk-1 qgk-1 qwik-1 ]T Parametric Fluid Flow Modeling NPV Optimization Model Predictive Control Sunday, October 07, 2012 Neelendra Nath, PetroFirst 11
  • 12. Model Predictive Control Process model for Online Computation of Class of Computer online prediction optimization of a appropriate control Control Algorithm of future plant cost objective over action behaviour a future horizon ỹqk+t|k = ∑(i=1 to nU)∑(j=1 to p)(hijq)( uik-j+t) + dqk|k Sunday, October 07, 2012 Neelendra Nath, PetroFirst 12
  • 13. NPV Optimization  Linear Programming optimization routine is use to find optimum solution. Assumption : Future reservoir behavior is described by current model(Certainty Equivalent Principle) Sunday, October 07, 2012 Neelendra Nath, PetroFirst 13
  • 14. Conclusion 1. A team approach based on integration of geosciences and engineering personnel, tools, technology and data is essential for sound reservoir management practice. 2. A better understanding of integrated approach and technology can be beneficial to geoscientists, engineers, field operations staff and managers. 3. Technological advances and computer power are providing the tools to manage reservoir better to maximize economic hydrocarbon recovery. 4. A multi-level self adaptive reservoir management strategy work wonders in term of increasing recovery factor and optimizing economics. Sunday, October 07, 2012 Neelendra Nath, PetroFirst 14
  • 15. Reference & Further Reading • Thakur, G.C.: “Reservoir Management- A Synergistic Approach.” paper SPE 20138 presented at the 1990 SPE Permian Basin Oil and Gas Recovery Conference, Midland, March 8-9 • Wiggins, M.L.: A Manual of Petroleum Reservoir Management, Crisman Institute for Petroleum Management, Dept. Of Petroleum Engineering, Texas A& M U.(May 1989) • Satter, A.: “ Reservoir Management Training- An Integrated Approach.” paper SPE 20752 presented at the 1990 SPE ATCE, New Orleans, Sept. 23-26 • Thakur, G.C.: “Implementation of Reservoir Management Programme.” paper SPE 20748 presented at the 1990 SPE ATCE, New Orleans, Sept. 23-26 • Satter, A. et al.: “ Integrated Reservoir management,” paper SPE 22350 presented at the 1992 SPE International Meeting on Petroleum Engineering, Beijing, China, March 24-27 Sunday, October 07, 2012 Neelendra Nath, PetroFirst 15