(2) planning in oil and gas fields

8/3/2019 (2) Planning in Oil and Gas Fields

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Planning

in

Oil & Gas Field


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PLANNING IS THE SEED FOR SUCCESSPLANNING IS THE SEED FOR SUCCESS

Without a plan, success will be difficult.

Planning defines the activities and describes how

the activities will be accomplished. Thepurpose of plan is to define each task,

estimate the time and resources required, and

provide a framework for management review

and control.

Planning is an iteration process


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Terminology

Scope: of any project is a combination of all individual tasks and their goals.

Activity They are a division of all the work that needs to be completed in

order to accomplish the project goals.

Resource is something that lies ready for use or that can be drawn upon for

aid or to take care of a need. Can be people, equipment, materials or services

that are needed to complete various tasks. The amount of resources affectsthe scope and time of any project.

Riskis any factor that potentially can jeopardize the successful completion

of a project.

Risk Management is the art and science of identifying, analyzing, and

responding to risk factors throughout the life of a project. Work Breakdown Structure is a division of tasks that define, organize, and

display the work to be accomplished to achieve the specified product or

services.


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Plan Triangle


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It is possible (and in some instances mandatory)

to setup relationships for the planned Activity

The relationship options are illustrated here:

If no relationships are set the system assumes all

activity will be start in start day of the project

(NOTE: Delays/overlaps between finish/start

are possible)

SS - start / start FF - finish / finish

FS - finish / start

SF - start / finish

EXAMPLE

A typical example of a Start / Start relationship

would where work needs to be carried out on an

offshore platform at sea level by boat. Rather

than complete each task step sequentially,

returning to shore each instance to pick up

necessary resources, it would more beneficial

carry out all task steps at the same time in asingle trip a start/start relationship.

0010 Task Step

0020 Task Step

0010 Task Step

0020 T. St

SS Start / Start

FS Finish / Start

Relationships


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Plan for Exploration Concession

Government


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Area C (88 km) located in thesouthern Gulf of Suez

Only one exploration dry well"drilled by Shell in 1988

West Tawila is juxtaposed to PicosTawila field to the west, Gemsa SE tothe north and close to south Geisum.

Detailed review of the West Tawila

block was done in house.

Bids due on 1st December 2009

West Tawila Lease

Gemsa SE Field

Geisum & Tawila

Fields

EGPC Exploration Bid Round

West Tawila Concession


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Reserves

Exploration Objectives

Profit

Company Weight


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Health Safety

& Environment

Exploration Scope of Work

Sub-Surface Studies

Drilling & Logs

Evaluation


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Health Safety & Environment

Environment Impact

Assessment

Available Location

ForFacilities

RiskAssessment


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Sub-Surface Studies

Review

SeismicAcquisition

Seismic Processing

Seismic Interpretation

Seismic Mapping

G&G Mapping

Assign Location &

Well Proposal


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Drilling & Logs

Hiring a Rig

ObtainApprovals

Secure Drilling material

Execution

Reserves Evaluation


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Drilling & Logs

Now that we have found a promising geological structure andacquired the petroleum rights, it is time to go ahead and drill.Regardless of all the sophisticated geological and geophysicalmapping that has been done, the only way to find out if there isany oil or gas present underground is to drill a well.


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Wildcat Well

WildcatWell: well that drilled into a geologicstructure in which no oil or gas has yet been

discovered. The objective of drilling is to bore a hole (thewell bore) into the ground until you penetratea target rock formation, that has beenidentified by the geologists and geophysicistsas having the potential to contain commercialhydrocarbons.

Formations may contain fluids (oil, water ornatural gas) at very high pressures, withouttaking the appropriate precautions, the fluidswould come out of the hole and we'd havewhat's called a blowout.

Drilling & Logs


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Drilling & Logs

Well Control by Blowout Preventer


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Reserves Evaluation

How Big is our Oil or Gas Field?

For in between the exploration phase and the development phase there isquite often one other phase: the delineation phase.

After drilling only one well (the discovery well), Seismic data is veryhelpful in mapping the size of the underground structure, but the only wayto be certain of what parts of the structure contain oil is to drill delineation

orstep-outwells. Each new well added more information about the field.This information was then used in planning the location of the nextdelineation well until finally there were enough wells to show the limits ofthe field.

After a field has been discovered, it must be developed so that it can beput on production and generate some cash. Developing a field involves the

drilling of additional wells to the geologic structure and installing production equipment throughout the field to facilitate commercialproduction of the oil or gas. The production phase essentially involvesgetting the oil and/or gas out of the ground, treating the fluids to removeimpurities, and taking whatever steps are necessary to keep the wellsproducing at a profitable rate for as long as possible.


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PLAN

XXXX


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Development Phase

The development plan can be generated Based on:

Volumes

P1, P2 and P3

Reservoir Characteristics

Porosity, Permeability and Pressure

Fluid Characteristics

Composition, Density (API) and Viscosity


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Definition of Reserves

Oil reserves are primarily a measure of geological risk - of the probability of oilexisting and being producible under current economic conditions usingcurrent technology. The three categories of reserves generally used areproven, probable, and possible reserves.

Proven reserves (P1) - defined as oil and gas "Reasonably Certain" to be

producible using current technology at current prices, with current commercialterms and government consent- also known in the industry as 1P.

Probable reserves (P2) - defined as oil and gas "Reasonably Probable" ofbeing produced using current or likely technology at current prices, withcurrent commercial terms and government consent - This is also known in theindustry as 2P or Proven plus probable.

Possible reserves (P3) - Possible reserves are those unproved reserves

which analysis of geological and engineering data suggests are less likely tobe recoverable than probable reserves. This is also known in the industry as3P or Proven plus probable plus possible.


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Drilling Plan


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Actual Production vs Drilling Cost

Drilling Cost Vs Production

8,800

1,2041,184

2,090

5,373

8,066

9,101

Amal 19

$4,591

Amal 16

$31,445

Amal 18

$18,595

Amal 17

$24,908Amal 15

$23,919

01,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Jan-

07

Feb-

07

M ar-

07

Apr-

07

M ay-

07

Jun-

07

Jul-

07

Aug-

07

Sep-

07

Oct-

07

Nov-

07

Dec-

07

Jan-

08

Feb-

08

M ar-

08

Apr-

08

M ay-

08

Jun-

08

Jul-

08

Aug-

08

Sep-

08

Oct -

08

Nov-

08

Production

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Expenditures

Oil

GasDrilling Exp.


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Amal Field Oil Production Forecast

0

5000

10000

15000

20000

25000

30000

35000

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Oil Rate

Oil Production Forecast


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Gas Production Forecast

Amal Field Gas Production Forecast

0

30

60

90

120

150

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Gas Rate


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Facilities

well head&

gathering

system

inlet

separator

system

condensate

stabilizationsystem

storage

export pumpexport pump to MELIHAto MELIHA


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inlet

separator

gas

sweet.

coco22gas

dehy.

H2O vaporH2O vapor

well head

&

gathering

system

to EPCto EPC

2 nd.. f/coal.. stab.

stor.

to MELEHAto MELEHA

w.deg.

to inj.wellto inj.well


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Facilities Plan


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Facilities and Drilling Relationship


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Economics

AFDP Expenditure Profile

0

7,80

39,75

6

15,908

9,863

10,093

9,373 10,

373

13,950

4,14

55,93

06,

617

10,803

27,1

00

4,92

5

2,36

0

340

340

340

240

40

9,040

16,8

16

7,36

5

0 0 0

16,000

0 0 0 0

16,520

21,000

21,000

21,0

00

12,000

0

21,000

21,000

21,000

21,000

18,000

0 0 0 0 0

183,520

209,520

393,040

32,436

26,494

28,15

530

,449

32,2

60

31,430

30,0

09

28,

666

27,373

25,991

0

10,000

20,000

30,000

40,000

50,000

Q1-

09

Q2-

09

Q3-

09

Q4-

09

Q1-

10

Q2-

10

Q3-

10

Q4-

10

Q1-

11

Q2-

11

Q3-

11

Q4-

11

Q1-

12

Q2-

12

Q3-

12

Q4-

12

Q1-

13

Q2-

13

Q3-

13

Q4-

13

Q1-

14

Q2-

14

Q3-

14

Q4-

14

Time by Quarter

QuarterlyExpenditureCo

stMUS$

AndDailyProduction

Rate

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

CumulativeCostMU

S$

Facilities Expenditure

Drilling Expenditure

Cumulative Facilities

Cumulative Drilling

Cumulative Total

Daily Production Rate


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THE TIME VALUE OF MONEY

We will use common

symbols and cash

flow diagrams.

Timep

period0 1 2 3 4 .

Cash

flow

at each

period

($)negative

positive P = present value

F = future value

i = interest rate

n = number of periods

How long is

a time period?

Examples? Economics


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Economics

Cash Flow Diagram


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Economics


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THE TIME VALUE OF MONEY

0 1 2 . n

P F

Determine the relationships between P and F

for n time periods, with compound interest

F = P ( 1 + i )n

Meaning of compound?

How was this determined?

What is the meaning

of n, i, P and F?

What is the future value of

$1000 after 10 years at

10% annual compound

interest?

Economics


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Economics

Cash Flow Diagram


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Payback time

The time lapse from the initial expenditure

until its cumulative net cash flow become

positive.

ROI (Return on Investment)

= Cum. Income/Total Investment

NPVThe capital created over and above the

interest rate.

Economics Indicators


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(2) planning in oil and gas fields

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