2TNO Middle East Production Optimization Introduction and Cases

TNO Middle-EastProduction Optimization – Introduction & cases

Anton Leemhuis

Contents

TNO: introduction, oil & gas, Middle-East

Production optimization: technology, advisory and knowledge transfer

Short cases: reservoir and productionLife cycle optimization: benchmarking of optimal water flooding strategyAssisted history matching using production and non-production dataRoot cause analysis and mitigation of slugging in horizontal wellsReal-time and optimal gas coning control Examples of new instrument development

Case studiesUsing coupled well-reservoir simulator to develop a optimal gas coning control strategyDevelopment and deployment of a real-time decision support off-shore North SeaIntelligent well survey

Examples long term collaboration & knowledge transf erIntegrated System Approach Petroleum Production (ISAPP) Increased Oil Recovery (IOR) program for horizontal wellsWorkshop examples

Matías Bikel - Albert JansenOil and Gas Industry

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TNO

TNO is a technology development and consulting company

with over 30 years of experience in the Oil & Gas industry

TNO Facts

Independent

Technology development, consulting, and contract R&D

Approximately 4500 employees

2/3 revenue from industry, 1/3 Dutch government

Markets

Oil & Gas, Defense & Safety, Mobility, Healthy Living, ICT

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Defense: main R&D contractor Dutch navy

Space: design of satellites, telescopes, mars pathfinder

Oil & Gas

High-tech Industries: main R&D contractor ASML lithography

Automotive: leading car crash testing Europe


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Business Focus Oil & Gas

Integrity Services

Instrumentation Carbon capture, storage & transport

Production Optimization

Flow, composition and integrity

Distributed sensing

Non intrusive sensing

Soft sensing

Exploration & Geomechanics


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Installation integrity: design, troubleshooting

Turbomachinery & acoustics

Testing

LNG Test and Technology Centre

Full Chain Carbon Capture Storage

H2S separation

CO2 separation

Sour gas services

Produced water treatment

Value Assessment of Production Technology

Real-Time Production Monitoring

Control of Unstable wells

Flow Assurance

Reservoir engineering

Petroleum System Modeling

Biostratigraphy

Basin Studies & Regional Mapping

Geomechanics

TNO Middle-East

Ambition

ApproachCollaboration projects with major industrial parties present in the region, making link to universities

FocusInitial focus on Oil & Gas Expanding into other strategic TNO markets: e.g. Industrial security, Water, Solar and Medical

To act as an accelerator of technology development and innovation in Gulf region


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Highlights

Opening by Dutch deputy PM Maersk Oil Qatar:

Start strategic long term project on Increased Oil Recovery (IOR) technology

Photo r - l: Sheikh Faisal Al-Thani of QP (dep MD Maersk Oil Qatar), Anton Leemhuis (MD TNO Middle-East), Lewis Affleck (MD Maersk Oil Qatar), Jan Mengelers (CEO TNO), Soren Frank (Dir. R&T Maersk Oil)

Photo l – r: Jan Mengelers (CEO TNO), Minister Verhagen , Dr. Tidu Maini (Chairman of the Qatar Science and Technology Park

TNO Middle-East office opened during state visit Dutch Queen to Qayar


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Current Activities Gulf

Consulting Services

Independent advice on deployment and

design of technology

NewTechnologies

Development and deployment of new

technologies to address issues in industry

Knowledge Transfer

Building R&D capabilities / labs

PhD programs

Workshops


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TNO Production Optimization

Assist operating companies with the development of production strategies that maximize asset performance and recovery


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Driven by solving case specific issues in operations, not by selling products

Working with multi-disciplinary teams including production, reservoir engineers

Focus on knowledge transfer

Activities

Consulting Services

Independent advice on optimal use of existing

technology

• Value assessments• Technology

roadmaps• Integrated design

studies• Technical reviews

NewTechnologies

Fill technology gaps where existing

technology is not sufficient

• Concept design and engineering

• R&D• Product development

together with partner• Field trials together

with end-users

Knowledge Transfer

Educate partners to make sure technology

has lasting impact

• Building R&D capabilities / labs

• PhD programs• Workshops• Exchange programs


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A Vision of Production Optimization

Monitor

Control

Aka: the digital oil field, Integrated Operations (IO), intelligent field, smart field or i-field


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Making Sense of it …

Optimi-zation

Control

Monitoring

Only a process that is monitored can be controlled

Only a process that is controlled can be optimized

UnderstandingOnly a process that is understood can be made ‘Intelligent’


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Time Scales


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TNO Technologies

Optimi-zation

Control

Monitoring

Understanding

Production Reservoir

Real-time production optimization methods

• gas lift• slugging• compressors• etc.

• Real-time monitoring methods• New instrumentation concepts

• Water flooding optimization methods• WAG optimization

• Dynamic multiphase flow models• Coupled well-reservoir models

• History matching tools• Coupled well-reservoir models


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Case overview

Short cases: reservoir and production1. Life cycle optimization: benchmarking of optimal water flooding strategy2. Assisted history matching using production and non-production data3. Root cause analysis and mitigation of slugging in horizontal wells4. Real-time and optimal gas coning control 5. Examples of new instrument development

Case studies6. Using coupled well-reservoir simulator to develop optimal gas coning control strategy7. Development and deployment of a real-time decision support off-shore North Sea8. Intelligent well survey

Examples long term collaboration & knowledge transf erIntegrated System Approach Petroleum Production (ISAPP) Increased Oil Recovery (IOR) program for horizontal wellsWorkshop examples


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1. Life Cycle optimization

SPE 119094 (2010)


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SPE “Brugge” caseA group of companies benchmarks strategies for life cycle optimization

Role TNOIn-house methods for history matching In-house water flooding optimization control algorhitms (e.g. reactive, pro-active, robust)Independent reviewer and collect best practices

Result: use a realistic test case field to determine added value of:

ICVs / zonesProactive water flooding controlIncreasing update frequencyAdvanced history matching (EnKF)

Similar casesDevelopment of water flooding optimization algorithms and testing on sector model of NOC in Gulf regionValue assessment of water flooding strategies for IOC in a carbonate field in Gulf region

Seismic Interpretation

Geological Modeling

Geomechanicsand Subsidence

Structural Modeling

Uncertainty Management and History Matching

Integrated Reservoir

Modeling

2. Assisted history matching


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JEWEL suite developmentDevelopment of a tool for making an efficiency history matching workflow

Role TNOIn-house developed models and systems for assisted history matching (e.g. EnKf)Development of software tool that interfaces to industry standard systems (e.g. SLB)Licensing for commercialization

Result - Software tool that enables high frequency

Incorporating various sources of real-time dataMaximize data utilizationAvoid data tsunamiIncrease update frequency

3. Slugging Mitigation


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Horizontal well sluggingCausing unstable and reduced oil production, separator Limited down hole data to understand what is happening

Role TNOCombining in-house and industry standard modelling capabilities for route cause analysis (severe, terrain etc.)Innovative solutions for slugging mitigationExperimental testing and model valdiation

Results from various projectsStructural insights into factors that influence onset sluggingReal-time dynamic gas lift optimization systemValue assessment for mitigation solutions

170 180 190 200 210 220 230 240 2502000

3000

4000

5000

6000

7000

8000

9000

10000

11000

Time [min]

Flo

w ra

tes

[Msc

f/d]

Gas flow rate

Field dataSimulations

4. Optimal gas coning control


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Short-medium long term optimization of horizontal well production asks for:

Incorporating production dynamics of well and reservoir Dealing with uncertaintiesTime varying production control

Role TNOSimulation environment to integrate dynamic reservoir, well and top side models and apply optimization toolsIn-house model based optimization toolsReduced order dynamic production models (proxy) of well and reservoir to speed up high computational load of dynamic optimization

Results on a realistic test case field reservoir show that optimal ICV control shows 17% higher production and 11% higher NPV compared to conventional well head control SPE 134308

Comparison (550 days)GOR well head control results in sub optimal drainage area, 13.2Mstb total oil produced and NPV of 5.75 M$

Optimal model based ICV control results in better drainage, 15.5 Mstb total oil produced and NPV of 633 M$

5. Instrumentation


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Need for new instrumentationIncreasingly complex reservoirs, processes and extreme environments requires improved:

(Distributed) well monitoringMonitoring subsurface dynamicsFacility & well integrity monitoring

Role TNOCreate, develop & demonstrate new sensing concepts (fiber optic, ultrasonic, sonar, radar, EM, sensing materials, nanophotonics & -materials)License to commercial partyCharacterizing subsurface behaviour by translating clients’existing sensor data (i.e. seismics, subsidence) using proprietary toolsAssess the value of information of (new) sensors

Ultrasonic bore hole radar (ALT)

Non intrusive real-time corrosion monitoring (Industrial JIP)

Nano sensors for reservoir monitoring (Advanced Energy Consortium)

In-line fiber optic flow meter (Shell / SmartFibres)

Distributed Chemical Sensor (Shell)

6. Case study: thin oil rim optimization

Two issues

Gas break through

Wax deposition

Find optimal strategy

Intermittent production

(on-off)

Automated well head

control to limit GOR

Critical rate (for

benchmark only)


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TNO executes the value assessment in direct corporation with asset team, getting input to build trust in models and end solutions

1. Analyse Production Data

2. Build a case specific integrated production model and validate it with field data

3. Simulate the impact of production optimization technology on production (off-line)

Impact on produced oil & gas (e.g. barrels)

Economic impact on assets (e.g. NPV)

4. Optimize design or usage of production optimization technology (off-line)

5. Implement in field


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oil

gas

water

Topside:

• Separators

• Chokes

• Sensors

• Process equipment

• Dedicated models of equipment. Developed by TNO or customer.

• Industry standard tool HYSYS is integrated.

Case specific coupled production model Wells:

• Transient/dynamic

• Stead-state

• Industry standard tools OLGA is integrated

•Simplified and dedicated models available to describe specific phenomena: e.g. slugging

Down hole:

• Multilateral horizontal/wells

• Interval Control Valves (ICVs)

• Gages (P, T)

Reservoir:

• Industry standard tool ECLIPSE is integrated

• Simplified and dedicated models (proxy) available to describe specific phenomena: e.g. movement of gas-oil-contact


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Model detailswell-reservoir model that tracks coning behaviourIncludes thermodynamic for waxingValidated on production data

ResultsSimulations show for what wells continuous closed loop production with flow controller is optionImplementation (current): simulation model is used to improve time dependant tuning of controllers

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Simulation demonstration model made to compare added value:Production optimization using well head feedback con trol on GOR – allowing for production intervals at relative low gas inflows leading to a increase in cumulative oil production of 30% as compared to intermittent productionIntermittent production – leading to low gas production but also low oil production due to down timeCritical rate (benchmark) – low gas due to fact gas cap is kept intact but uneconomical oil production Uncontrolled (benchmark ) – highest oil production because no choking back but also high gas


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8. Real-time production monitoring

Goal

Improve decision making

Increase availability of data

Increase reliability of data

Starting point

Production historian off-shore

and on-shore

Large amounts of

real-time data available

On-shore operation

centre


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DiagnosisAction


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A phase approach was used

1. Needs analysis & technology roadmap by TNO using input production technologists, reservoir engineers, maintenance, asset management, operations

2. Develop demonstrator application for 1 well on hi storic dataTNO: suite of real-time production monitoring and analysis methods, developer of applicationWintershall: define functionality and interfaces, testing, existing production models which are linked to system

3. Pilot application for F-16 A on real-time dataSame roles as in phase (2), adding:

TNO: develop a 24/7 available robust server implentationWintershall: integration into company ICT enviromentTNO and Wintershall engineers together build applications

4. Increase functionality Remote on-shore control room (operations)Head quarters (engineers)

5. Roll out to other North sea assets

Similar casesMaking of a road map for deployment I-Field technologies at a NOC in the Gulf region


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Real time database(s)

Operator GUIs

Engineering workbench and GUIs

View sharing

Automatic real-time processes that ensure data consistency

(real-time methods)

Automatic real-time processes to compute KPI’s, virtual sensing, event detection, RTPO

TNO Real-time Monitoring Suite

Automated

Interactive


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Key features of developed system

Runs 24/7

Real-time PI connection

Model based

Examples functionality

Filter real-time data, data repair and data

reconciliation

Real-time models make production forecasts and

detect trends

Early event detecting of e.g. salt precipitation

Models used for predictive maintenance compressors

Automated flow meter accuracy indicator and drift

detections


Benefits - Case

Intelligent Energy – March 2010• Sustainable 5% increase production• Less down-time asset• Better planning maintenance

(SPE 128300)

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9. Intelligent Well Survey

Example: 2009 ‘Intelligent Wells Market Survey’ (TNO/OTM) • Deployment rate of smart wells• Experience from end users and interviews IOCs, NOCs, Independents• Application areas

TNO uses its independent position to gather

• Best practices at operating companies around the world

• State-of-the art overview of products in the oil field service industry

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Long term collaborations


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Increased Oil Recovery ProgramMaersk Oil - TNO

Focus on horizontal wellsDeveloping and deploying Intelligent field technology for production monitoring, control and optimizationFrom offices of Maersk and TNO in Qatar Science and Technology Park

Integrated System Approach Petroleum Production (ISAPP)Delft University, TNO, Shell

Reservoir optimizationProduction optimizationSmart well technologyClosed program focus on bringing methods from academia to field~50 PhDs


Workshop examples

• The Intelligent Oil-field –Practical Approach

• Oct 2010• SPE Applied Technology

Workshop, Abu Dhabi

• Opportunities for practical use of intelligent technology in long and short terms optimization.

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Real-Time Production Monitoring

Dec 2009 / Jan 2010London, SMi

Turning data into information An introduction into using real-time data to monitor performance and optimize an oil & gas assetKey insights into the benefits of

the technologyLessons learned about

implementations in various types of companiesAn understanding of the major technical conceptsLessons learned about

embedding it in an organization


Workshop examples

Inflow Control Technology

Aug 2009, IQPCKuala Lumpur

Optimizing well Production through Effective In-flow Control Solutions Focus on how integrated production models can be used to design optimal well production strategiesCases covering e.g. severe slugging, water flooding optimization, gas coning and liquid loading

• Closed- Loop Reservoir Management

• March 2008• SPE Applied Technology

Workshop, Brugge

• TNO organizer• Optimizing well Production

through Effective In-flow Control Solutions

• Focus on how integrated production models can be used to design optimal well production strategies

• Cases covering e.g. severe slugging, water flooding optimization, gas coning and liquid loading

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For questions, please contact:

Managing Director Middle-East

Anton Leemhuis

[email protected]

+974 33 57 33 86


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2TNO Middle East Production Optimization Introduction and Cases

Documents

describe specific

albert jansen

increased

assisted history

time decision

water flooding

integrated

production