Coiled
ProductionTubing
Technology
Tahir Mammadov
D. R. Davies
With thanks to BJ Services Company
Field Development
Introduction
Objective of the FDP process is the selection of a development plan that satisfies an
Operator’s commercial, strategic and risk objectives, subject to regional and site constraints.
Process requires continuous and effective collaboration and alignment amongst the major
stakeholders, which include the reservoir, well construction, surface facilities and
commercial teams.
Overall field cycle
Overall field life cycle
Production system components
Wellhead
Sep.
Reservoir rock
Surface
Production
System
Components
Surface
facility Well Oil
Water Water
4/14/2018
Tahir Mammadov
Field Development
Fundamental Decision: Develop the discovered field as Oil or Gas Field
• This decision impacts the:
– sales contract
– field development philosophy
– plans for Improved Oil Recovery
– design of the production facility
Remembering that:
• Sale of liquid hydrocarbons usually most profitable
• More complex facilities increase the liquid recovery
Oil Field Production Profile
The length of Plateau and Decline is depend on ???
Oil Field Production Profile
• Discovery and Appraisal wells reduces project risk
to an acceptable level. “First oil” is delivered as
quickly as possible after Project sanction
• Production built up as rapidly as possible to plateau
- Oil export route depends on field location & rate
• Followed by decline to the minimum economic rate
• Large volumes of water produced - facilities have to
be appropriately sized. Water Injection also used
• Export of associated & other gas requires dedicated
pipeline & substantial gas volumes. Other options:
- fuel, gas lift, reinjection, flare etc.
Oil Field Production Profile
• Typically produce a much larger volume of water than
oil- hence oil/water separation occurs near the well to
minimize unnecessary expense of water pumping over
large distances—particularly in offshore fields
• While wellhead separation (at the seafloor and disposal
into an injection well) is now being developed for subsea
wells
• Offshore opeartions are becoming similar to land
operations, where piping and pipeline costs are
minimized by:
– Local separation and disposal of the produced water
– Oil (with low water content) being sent to a central
gathering station for final water separation treatment
Oil Field Production Profile-Gas used
Pipeline export
• Gas export is possible when the volumes are sufficient to make
building of a dedicated pipeline economic
• Available pipeline infrastructure is even more important
Floating facilities
• Floating facilities for liquefied natural gas or compressed
natural gas require very capital-intensive facilities
Oil developments use the gas as fuel to power the platform and
facilities
Smaller volumes of gas can be used for electrical power
generation for the local market if a local consumer market not
exist
Remaining gas-has to be disposed of by flaring, venting or
underground disposal.
North Sea Pipeline Infrastructure
The density of the pipeline transport network installed in the Northern N Sea
Production start: 25 years ago
Gas Fields
Consists: primarily CH4 with other hydrocarbons, H2O,
CO2, N2 and H2S
Creation mechanisms: biogenic and thermogenic.
Biogenic: gas is created by methanogenic organisms
in marshes, bogs, landfills, and shallow sediments.
Thermogenic: deeper in the earth, at greater temperature and pressure,
gas is created from buried organic material
Gas Reservoirs: containing only free gas which is a mixture of
hydrocarbons (dry, wet and condensate)
Phase: wholly in the gaseous state
Main drive mechanism: gas expansion
Gas Field Production Profile
• Often seasonal production profile (winter or summer peak)
Gas Field Production Profile
• Gas Sales contracts vary:
- specified yearly total production,
- deliverability at end of winter period,
- swing producer (small volumes but high cost gas) etc.
• Condensate separated offshore and often added to
export gas for onshore separation
• Modern technology allows many small/mature fields to
operate on a Not Normally Manned basis
• High pressure / High temperature Condensate fields
now being developed in the Central North Sea.
Field Development Examples
A selection of Field Development Options
Subsea
Compliant Tension-leg Semi- completion
Fixed platforms towers platforms Spar submersibie and tie-back
<520m 370-910m ≈2000m 600-3000m 60-3000m FPSO to host facility
• Option chosen depends on size of oil/gas field,
water depth & Metocean data
Floating Production Storage and Offtake (FPSO) vessel
• Processes hydrocarbons received from local production wells from a
platform or subsea template
• Well stream is processed & stored on the vessel, offloaded to a shuttle
tanker or exported via a pipeline
•Offshore loading from a single buoy mooring or from FPSO when a pipeline
is not justified
Floating Production, Storage and Offloading Vessel
An FPSO is a floating production system:
• moored permanently on location
• connected to the wells below by flexible risers.
• An FPSO has:
• The shape of a ship
• Controls the well operations (produced volumes, fluid pressures etc.)
• Has the required production & processing facilities
• Has crude oil storage tanks built into the hull
• Oil Export by shuttle tanker or pipeline (also gas)
• But NO drilling
Floating, Drilling and Production, Storage and
Offloading (FDPSO)
A FPSO supported
Subsea development
A Platform supported,
multi- field,
Subsea development
Production Platform Functions
An Integrated, Steel Jacket Platform
• Many of these modules can now be installed in a single lift by a Heavy Crane Barges
(capacity 10,000 tons) allowing reduced off-shore hook-up requirements
Series of 4 separate platforms with their functions
• The platform functions are not always integrated in a single platform; but
may be separated into multiple separate platforms connected by bridges
Oil Recovery Processes & required Platform Functions
Field Development on Land with Regularly Spaced Wells
• The wells are often placed close together in a regular pattern on land since
both the cost and production rate per well are normally lower than offshore
Field Development on Land with Regularly Spaced Wells
Regular injection pattern
Direct line drive: The lines of injection and production are directly opposed
to each other. The pattern is characterized by two parameters:
a = distance between wells of the same type
d = distance between lines of injectors and producers
Staggered line drive: The wells are in lines as in the direct
line, but the injectors and producers are no longer directly
opposed but laterally displaced by a distance of a/2
Five spot. This is a special case of the staggered line drive
in which the distance between all like wells is constant,
i.e., a = 2d. Any four injection wells thus form a square
with a production well at the center.
Nine spot. This pattern is similar to that of the five spot
Seven spot. The injection wells are located at the corner but with an extra injection well drilled at the middle of
of a hexagon with a production well at its center each side of the square. The pattern essentially contains
eight injectors surrounding one producer.
Field Development on Land with Regularly Spaced Wells
Peripheral Injection Patterns
Description: the injection wells are located at the external boundary
of the reservoir and the oil is displaced toward the interior of the reservoir
Main characteristics of the flood:
• yields a maximum oil recovery with a minimum of produced water.
• formation permeability must be large enough
• keeping injection wells as close as possible to the waterflood front
without bypassing any movable oil
• results are more difficult to predict
• Injection rates are generally a problem because the injection wells
continue to push the water greater distances.
Field Development on Land with Regularly Spaced Wells
Crestal and Basal Injection Patterns
In crestal injection: the injection is through wells located at the top of the structure (Gas injection)
In basal injection, the fluid is injected at the bottom of the structure (water-injection)
-additional benefits being gained from gravity segregation.
Irregular injection patterns
Desciption: Faulting and localized
variations in porosity or permeability
may lead to irregular patterns
Typical Land Production Facilities
• Production facilities with the same objectives as those installed
offshore are employed on land.
• The space &weight limitations encountered offshore are absent
Production Philosophies
Typical Sales/Disposal Specifications
Typical Changes in Production Rates during
the lifetime of a 100,000 bopd oilfield
Changes in Production Rates during the lifetime
of a typical Southern North Sea gas field
• Produced water composition changes as field matures
Field Development Planning Options
Part of the field development process is to review the
economic merit.
Typical options:
• Build a New Platform
• Install a Subsea Tieback to a nearby host facility
• Lease of FPSO vessel
• Purchase of FPSO vessel
Option 1: A purpose-build Platform
Advantages Disadvantages
Optimally designed for the required High capital expenditure due to cost
production rates of purpose built platform and higher
Low operating costs field abandonment costs must be
Low cost well interventions included in the project's economic
maximises developed reserves evaluation
Low cost infill drilling NPV is also reduced by delays in first
Extended reach drilling from the oil production due to the long
platform can reach small, relatively platform construction period
nearby, development targets that
would be uneconomic for a subsea
well
Potential for field expansion through
subsea tieback
Option 2: A Subsea Tieback to a nearby host facility
Host facilities: FPSO or platform
Advantages Disadvantages
Lower capital outlay, Higher operating cost due to processing fees levied by host
faster start-up and earlier facility
first oil Capital investment required to adapt the host facility's
Lower decommissioning production equipment (separators, etc.) to be able to process
cost for subsea templates this new, production stream
and wells than for a Liable for contribution toward the host facility’s
dedicated platform decommissioning costs
Production rate may be limited by the host facility
constraints
The recovery factor may be reduced by early
decommissioning of the host facility
Reserves reduced due to high cost of well interventions
overs
Comparison of oil recovery factor in several fields
developed by subsea wells or fixed platforms
Option 3: Subsea wells with Leased FPSO Vessel
Advantages Disadvantages
Earliest first oil FPSO will require modifications to process the field's produced
Lowest CAPital fluids. May be charged as an increased day-rate rather than a
EXpenditure (CAPEX) of capital charge
all options if oil export is Highest OPerating Expenditure (OPEX) of all options. This
via shuttle tanker will cover the day-rate charge for the FPSO, manpower and
Low CAPEX reduces well production and management services. Operators may pay a
financial risks during charge per barrel of oil and cubic foot of gas processed.
periods of low oil prices Higher OPEX per barrel of oil produced due shuttle tanker cost
Lowest decommissioning being higher than for pipelines.
cost due to simple vessel Higher cost for interventions and work overs for subsea wells
removal reduces reserves
Limited oil storage capacity, typically between two and seven
days production at maximum field rates.
Lower production up-time; FPSO operations are more weather
dependent (e.g. for oil offloading)
Option 4: Subsea wells with purpose-built FPSO
Advantages Disadvantages
High CAPEX if FPSO is operator financed, Increased CAPEX requirements
but no rental charges for FPSO vessel Probable delay in first oil due to modifying /
Alternatively, FPSO may be financed and building own FPSO compared to leasing
operated by a 3rd party who recover their Higher OPEX/bbl due to greater shuttle
costs via the day rate of a fixed term tanker cost compared to pipelines.
contract (reduces CAPEX but increases Reduced reserves due to subsea
OPEX) development with high well drilling and
Delayed first oil due to time required to intervention costs
design and build the FPSO Limited oil storage capacity, typically
More efficient processing and reliability due between two and seven days production at
to fit-for-purpose process facilities maximum field rates.
Low decommissioning cost - vessel moved Lower production up-time; FPSO operations
to another field or sold are more weather dependent (e.g. for oil
offloading)
Example
The Focus of Industry
Exploration Refining
Production Marketing
Tahir Mammadov L 1 - Focus of Industry
A Fully-Integrated Oil Company
http://www.npl.co.uk/upload/img_400/oilrig.gif
Getting Raw Refinery Getting Refined
Oil & Gas to Products to
the Refinery the Consumers
Tahir Mammadov L 1 - Focus of Industry
Components of the Upstream
• Find Oil & Gas ‘Pools’
– which regions and basins?
– which blocks?
– where on the block?
• How to Get It Out
– where, in detail, are the reserves?
– what to build (facilities)?
– will it be profitable?
•• From
From the
the Ground,
Ground, to the to the
RefineryRefinery
• From the Ground, to the Refinery
– how
how to
tomanage
manage thethe
field?
field?
– how to manage the field?
– how
how to
todeliver
deliverthethe
‘crude’?
‘crude’?
– how to deliver the ‘crude’?
Tahir Mammadov L 1 - Focus of Industry
Oil Company Targets
To maintain a healthy petroleum company, one would want to:
• Replace production (what you take out of the ground) with new reserves
Exploration Finds Volumes Produced
• Keep finding costs below $1 per barrel
Exploration Costs
< $1/barrel
New Barrels
Tahir Mammadov L 1 - Focus of Industry
We Need to Drill Wisely
• Wells can be very expensive, some > $200 million, a lot even for
a major oil company
• Well placement and well path can be critical to success
• So …..
How can we determine where to drill and predict
what we will find BEFORE we start drilling?
This leads to the need for geologists, geophysicists,
and other specialists focused on imaging and
interpreting the subsurface
Tahir Mammadov L 1 - Focus of Industry
G&G in Exploration
Geoscientists are needed to answer questions
such as:
• Which basins throughout the world offer the most
promise?
• Which blocks in those basins should we bid for?
• Where on the block should we drill?
• What should we expect from a particular well?
– What type of HC: oil, gas, or condensate?
– What amount of HC will we recover: # barrels?
– What sort of flow rates can we expect?
– How risky is this well?
– etc.
Tahir Mammadov L 1 - Focus of Industry
Exploration’s Task
Identify
Opportunities Capture
Prime Areas
Acquire
Seismic Data Drill
Process Wildcats
Seismic Data
Interpret
Failure Success
Seismic Data
Assess Confirmation
Prospects Well
Uneconomic Success
To Development
Drop
Or Production
Prospect
Tahir Mammadov L 1 - Focus of Industry
An Exploration Success
The Bonanza Basin, offshore
Somewhereia, was consider
to have high potential.
Bonanza Basin
Block
5 Block Block Block
6 7 8
Block Block Block Block
1 2 3 4
Somewhereia
Tahir Mammadov L 1 - Focus of Industry
An Exploration Success
Bonanza Basin
The Bonanza Basin, offshore
Block
5 Block Block
7
Block Somewhereia, was considered
6 8
to have high potential.
Block Block Block Block
1 2 3 4 We leased the two highest-
ranked blocks in the last
licensing round.
Somewhereia
Tahir Mammadov L 1 - Focus of
An Exploration Success
Bonanza Basin The Bonanza Basin, offshore
Somewhereia, was
Lead Lead considered to have high
C A
potential.
Lead
Block Block
B
We leased the two highest-
7 8 ranked blocks in the last
licensing round.
8 leads were identified, 3
Alpha Prospect passed economic screening
Block and were matured into
7 prospects.
Block
8
Tahir Mammadov L 1 - Focus of
Our Assessment Results
Alpha Prospect – Main Compartment - Risked
1.0
100
Gas Only
0.8
62 % COS
Economic Minimum
0.6 Gas Cap & Oil Leg
51 % Chance of
Finding More
0.4
Than the
Oil Only Economic
0.2 Minimum
0.0
0 100 200 300 400 500
Million Oil Equivalent Barrels
62% Chance to find any hydrocarbons
51% Chance to find 100 MBOE
5% Chance to find 400 MBOE
L 15 – Beyond Exploration
Congratulations! A Huge Success
Alpha Prospect
YOUR exploration well
Block on the Alpha prospect
7
discovered an
estimated 325 MBO
Salt
Discovery Diapir Alpha Prospect – Main Compartment - Risked
Well
1.0
100
0.8
Block Gas Only
62 % COS
Bonanza Basin
Economic Minimum
8 0.6 Gas Cap & Oil Leg
0.4
Oil Only
0.2
0.0
0 100 200 300 400 500
Million Oil Equivalent Barrels
L 15 – Beyond Exploration
What’s Next?
• Exploration would drill one or two confirmation wells to verify
there is enough HCs to make some money (Value > Costs)
• If results continue to be good, the FIELD would pass on to
Development or Production people
Identify
Opportunities Capture
Prime Areas
Acquire
Seismic Data Drill
Process Wildcats
Seismic Data
Interpret
Success
Seismic Data
Assess Confirmation
Prospects Well
Uneconomic Success
To Development
Or Production
L 15 – Beyond Exploration
Delineation Well
Alpha Prospect 6 Months later…
Block
A delineation well is
7
Delineation completed to the NE
Well
An OWC is found at 4500
m – the same depth as in
Salt the discovery well
Discovery Diapir
Well The porosity is slightly
better – 26% versus 23%
Block in the discovery well
Bonanza Basin 8
A confirmation well
The delineation well has proved that there are
confirmed enough oil to merit significant volumes of
field development – EUR now oil.
set at 348 MBO
L 15 – Beyond Exploration
G&G in Development
• Exploration has drilled a discovery and a delineation well.
• The ultimate recover for Alpha is estimated to be 338 MBO,
which greatly exceeds the economic threshold of 100 MBO
Questions:
• Is the reservoir a single unit, or is it segmented
(separate regions to drain)?
• How many wells and where should they be drilled?
• What sort of facilities (platform?) will we need?
• How can we speed-up time to first oil?
• What uncertainties remain?
L 15 – Beyond Exploration
We Need More Detail
Reservoir Map Reservoir Map
at the end of at the end of
Exploration Development
L 15 – Beyond Exploration
Some Questions …
#2
#3
Why did they drill well #3?
#4
#1 Why did they drill well #4?
Where would you place well #5?
Why?
L 15 – Beyond Exploration
Data for Development
We may need better quality data to address development needs
Data Used for Exploration Data Reprocessed or
Reshot for Development
And Production
L 15 – Beyond Exploration
G&G in Production
• Production has begun at Alpha.
• The initial production rates are as expected.
Questions:
• How should we manage the field so as to maximize
our investments?
• Can we monitor how oil is being swept out of the
reservoir?
• What about injection wells and enhanced recovery?
• Is there more oil in the vicinity – either at deeper
depths or in nearby traps?
• Can we build a computer model of the field that
matches existing production data? If so, we can test
future recovery with different drilling scenarios.
L 15 – Beyond Exploration
Reservoir Simulation
Geologic Model
HISTORY
MATCH
Oil Production
Actual in Blue
Modeled in Red
Production
Time
Reservoir Simulation
L 15 – Beyond Exploration
The Value of G&G to an Oil Company
• G&G work is done to add HC reserves (volumes)
– New discoveries
– More from discovered producing zones
– Additional producing zones
• Get the most reserves at the lowest cost
– Invest in the right basins
– Drill in the optimum locations
– Correctly assess what can be recovered
– Avoid unnecessary wells
L 15 – Beyond Exploration
Let’s Fast Forward a Number of Years
• The Alpha field has been producing for 5 years
• We want to maximize production
L 15 – Beyond Exploration
A Geologic Model
An integration of all geologic, geophysical, petrophysical and
interpreted or conceptual information about a reservoir into
a single 3D numerical description of that reservoir
Geophysical
Interpretation
Stratigraphic
Interpretation
Petrophysical Interpretation Structural Interpretation
L 15 – Beyond Exploration
A Geologic Model
1m
Each cell can be
populated with rock &
fluid Properties:
– Facies
– Porosity
– Permeability
– Fluid Saturation
– Etc.
L 15 – Beyond Exploration
Using a Simulation
History
History Prediction
Prediction
Actual
Modeled
Rate
Oil Rate
In
fill
In
Oil Rate
Oil Rate
fill
Dr BOaRs
Oil Rate
Oil Rate
Dr
illi
Oil
illi
ng
Ba
ng
se
EO
Ca
R
Ca
se
se
Time
Time
(yrs)
Time
Time
Time (yrs)
Time
How do we use this information?
• Field development planning
• Field production optimization
• Reservoir surveillance
L 15 – Beyond Exploration
