The life of an oil and gas field

PRESENTED BY:

SURESH BALRAJ

B.Sc. Petroleum Engineering, Year 4

Point Lisas Campus

Wednesday 11th March, 2009

THE LIFE OF AN OIL & GAS

FIELD

Where Will You Fit In?

SPE UTT SC TECHNICAL SESSION #4

OBJECTIVES

Life stages of an oil and gas field

Chronological order of work performed in each stage

Disciplines involved in each stage and their functions

Reservoir parameters determined during the stages

Keep you awake…

METHODOLOGY

INTRODUCTION

TRINIDAD & TOBAGO

RESERVES

TRINIDAD ACTIVITIES

OIL vs GAS

PRODUCTION

DEVELOPMENT

APPRAISAL

EXPLORATION DECOMMISSIONING

COMPETENCIES

CONCLUSION

INTRODUCTION

Field - Area consisting of single/multiple reservoirs all grouped on or related to

same individual geological structural feature &/or stratigraphic condition

INTRODUCTION

Field - Group of producing oil & gas &/or injection wells

- Wells may produce from several reservoirs at different depths

FIELD A

FIELD B

FIELD C

FIELD D

D-1

D-2 ST1D-3 ST3 XX

TRINIDAD & TOBAGO

Trinidad & Tobago Fields (May 2007)Trinidad & Tobago Concessions (April 2008)

RESERVES

(P90) (P90 + P50) (P90 + P50 + P10)

SPE/WPC/AAPG Resource Classification

PROVED GAS, TCF R/P RATIO OIL, MMSTB R/P RATIO

Trinidad 16.95 12.3 728.3 14.1

World 6,194.192543 60.3 1,332,000 41.6

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TRINIDAD ACTIVITIES

Exploration & Appraisal (‘08) – Block 5C (Canadian Superior),

22, 1A & 1B (PetroCanada), Block 3B (Anadarko), Starfish (BG Trinidad &

Tobago)

Bid Round (Q4’08) – Blocks 4B, 5D, NCMA 3,4, 5. TDAA

Average Production (December ‘08) – Oil (107,205 STB), Gas (3,675.95

MMSCF/D)

OIL vs GAS

OIL GAS

Oil Spot Market DCQ Contracts

Artificial Lift Compression/Recycling

Produced and Stored Produced on Local Demand

80 MMSTB Uneconomic 0.5 TSCF Uneconomic

Global price Region/Contracted Price

BS&W Calorific Value (Wobbe Index)

Oil Tankers/Bunkers Pipeline Transport

IOR Specified Abandonment Pressure

EXPLORATION

Discover Hydrocarbons

SELECT

CONCESSION

SELECT

LOCATION

FIND NEW

HYDROCARBONS

DRILL & TEST WELLS EFFICIENTLY & SAFELY

EVALUATE FORMATION & QUANTIFY AMOUNT OF HC NEAR WELL

GEOLOGY &

GEOPHYSICS

DRILLING &

OPERATIONS

ENGINEERING

PETROPHYSICS

Global Basin Analysis

Develop Play Concepts

Define Exploration Play Areas

Evaluate ProspectsIdentify Drillable Prospects

Drill Exploration WellsWell Planning

Rig Selection

Drilling Systems & Equipment Selection

Site Preparation Drilling Technique Casing Plan & Cementing

Troubleshooting Drilling Problems

Costing & ContractingDIRECT INDIRECT

Cores Wireline Logs

Sidewall Samples Logging While Drilling Logs

Mudlogs Seismic

Formation Pressure Samples

Fluid Samples

INFORMATION

Lithology

Porosity

Hydrocarbon Saturation

Net Reservoir Thickness

Permeability

APPRAISAL

Evaluate Discovery for Commercial Development

INTERPRET & EXTRAPOLATE WELL DATA TO DESCRIBE RESERVOIR

IDENTIFY DEVELOPMENT OPTIONS & PREDICT RECOVERY

G+G &

RESERVOIR

ENGINEERING

CHECK WHETHER VENTURE IS ECONOMICALLY JUSTIFIED

DESIGN WELL COMPLETIONS &/OR ARTIFICIAL LIFT SYSTEMS

ECONOMICS

RESERVOIR

ENGINEERING

PRODUCTION

TECHNOLOGY

Geological Logging Coring Fluid Well Test Production

Number of Wells, Types of Wells, Locations of Wells, Well Production Rates

DEVELOPMENT

Planning

SELECT MOST PROFITABLE DEVELOPMENT OPTION

DESIGN & CONSTRUCT FACILITIES

ENGINEERING

ECONOMICS

ENGINEERING

ESTIMATE FACILITIES COST

DEVELOPMENT

Execution

DRILL & COMPLETE WELLS SAFELY & EFFICIENTLYDRILLING &

OPERATIONS

ENGINEERING

G&G,

RESERVOIR &

DRILLING

ENGINEERING,

PETROPHYSICS

PLAN & EVALUATE WELLSUPDATE RESERVOIR MODEL

IF REQUIRED

PRODUCTION

Produce Hydrocarbons

OPERATE & MAINTAIN WELLS & SURFACE FACILITIES

RESERVOIR

ENGINEERING

PRODUCTION

TECHNOLOGY

PRODUCTION

OPERATIONS

MONITOR RESERVOIR

PERFORMANCE

IDENTIFY MEANS TO

IMPROVE RECOVERY

OPTIMISE PRODUCTION

PEFORMANCE

ADVISE ON CHEMICAL

ASPECTS OF PRODUCTION

DECOMMISSIONING

Planning, approval, implementing removal of oil/gas installations when no longer

needed for their current purpose

Wells abandoned - Isolation

- Containment of over-pressured zones

- Aquifer protection

- Removal of wellhead equipment

Pipelines - Circulated clean

- Filled with water/cement

- Cutup/reeled

Land Facilities - Hazardous compounds removed, scrapped

- Cellars, drilling pads, access roads & buildings removed

- Environmental restoration

Offshore Facilities - Substructures: Recycled/disposal onshore/deepwater

disposal/toppling on site/artificial reefs

- Topsides: Onshore recycling/refurbishment for re-use

PARAMETERS

CLASSIFICATION DATA ACQUISITION TIMING RESPONSIBILITY

Seismic Structure, stratigraphy, faults, bed thickness, fluids, interwellheterogeneity.

Exploration. Seismologists & Geophysicists.

Geological Depositional environment, diagenesis, lithology, structure, faults, & fractures.

Exploration, discovery & development.

Exploration & DevelopmentGeologists.

Logging Depth, lithology, thickness, porosity, fluid saturation, fluid contacts, & well-to-well correlations.

Drilling. Geologists, Petrophysicists, & Reservoir Engineers.

Routine Coring Depth, lithology, thickness, porosity, permeability & residual fluid saturation.

Drilling. Geologists, Drilling and Reservoir Engineers & Laboratory Analysts.

SCAL Relative permeability, capillarypressure, pore compressibility, grain size & pore size distribution.

Drilling. Geologists, Drilling and Reservoir Engineers & Laboratory Analysts.

Fluid Formation volume factors, compressibilities, viscocities, gas solubilities, chemical compositions, phase behavior & specific gravities.

Discovery, delineation, development & production.

Reservoir Engineers & Laboratory Analysts.

Well Test Reservoir pressure, effective permeability-thickness, stratification, reservoir continuity, presence of fractures/faults, productivity & injectivity indices & residual oil & gas saturation.

Discovery, delineation, development, production & injection.

Reservoir & Production Engineers.

Production/Injection Oil, water & gas production rates. Cumulative production, gas & water injection rates & cumulative injections. Injection & production profiles.

Production & Injection. Production & Reservoir Engineers.

COMPETENCY MATRIX

Set of tools used in determining minimum aptitude levels for Petroleum

Engineers

Structured to assess minimal competency levels required at various stages of

Engineer’s career

Used to establish future Industry Standards

Breadth - Basic knowledge common to all areas of Petroleum Engineering

needed by each Engineer to demonstrate minimum competency after

four to six years of practical experience

Depth - Knowledge needed by Petroleum Engineers to demonstrate

minimum competency within their primary area of practice after four to

six years of practical experience

Petroleum Engineering Sub-Disciplines - Drilling, Formation Evaluation,

Production, Reservoir

http://www.spe.org/spe-app/spe/career/cert_comp/competency.htm

COMPETENCY MATRIX

General Knowledge/Skill

Task Minimum Competence Breadth Minimum Competence DepthAbove Minimum

Competence

Understand & apply

geoscience

principles

Understand geoscience

principles (e.g. fracture gradients,

wellbore stability, pore pressure

prediction)

Understand and apply

geoscience principles within

sub-discipline

Apply geoscience principles

across sub-disciplines

Design a directional

well path

Understand relationship between

difficulty & lateral displacement

Select appropriate kickoff

points, build rates, angles &

bottom hole assemblies

Optimize directional

program & casing design to

avoid key seating. Evaluate

casing wear & develop

designs to mitigate problem

Determine formation

properties (porosity,

saturation, net pay)

from well logs

Determine properties from log

readings in clean sands

Determine properties from log

readings in both clean and shaly

sands. State most common

water saturation models

Be able to depth-shift and

normalize in complex

lithology, multiwell field

Nodal Analysis Awareness that the optimum

producing configuration is a

function of initial reservoir inflow

performance…

Able to design the appropriate

wellbore configuration given

initial and projected reservoir

inflow performance…

Able to design the

appropriate wellbore

configuration for surface

conditions such as subsea

or deep water operations or

high pressure…

Perform reservoir

characterization.

Understand how routine core

analysis is used to identify net

pay and fluid contacts.

Apply routine core analysis to

identify net pay and determine

contacts. Evaluate vertical

sweep efficiency from core…

Using core and RFT data,

integrate reservoir

performance

and well tests…

REFERENCES

Dung, T.Q. (Undated). Petroleum Engineering Disciplines – Introduction to the

Petroleum Industry. Faculty of Geology and Petroleum Engineering, Ho Chi

Minh City University of Technology.

Jahn, F., Cook, M. & Graham, M. (2008). Hydrocarbon Exploration and Production 2nd

Ed. TRACS International Consultancy Ltd., Aberdeen, U.K. Elsevier, U.K.

Guidelines for the Evaluation of Petroleum Reserves and Resources (2001).

SPE/WPC/AAPG. Society of Petroleum Engineers

Ministry of Energy and Energy Industries, Trinidad.

Geological Society of Trinidad and Tobago (GSTT). UTT, Pt. Lisas Campus.

The University of Trinidad and Tobago

SPE Student Chapter

The University of Trinidad and Tobago

SPE Student Chapter

The University of Trinidad and Tobago

SPE Student Chapter

The University of Trinidad and Tobago

SPE Student Chapter

The University of Trinidad and Tobago

SPE Student Chapter

The University of Trinidad and Tobago

SPE Student Chapter