closing the digital oilfield divide with subsea digital twins

IDC #EUR147987721

CLOSING THE DIGITAL OILFIELD DIVIDE

WITH SUBSEA DIGITAL TWINS

Author: Gaurav Verma

June 2021

An IDC Technology Spotlight Sponsored by FutureOn

Closing the Digital Oilfield Divide with Subsea Digital Twins Siloed Data and Limited Visualization Capabilities Make Oilfield Developments Challenging

Oil and Gas (O&G) operators face multiple challenges that call for action on cost optimization and efficiency gains in the cost-intensive upstream business, pushing them to rethink how they design, develop, and maintain the subsea oilfield. Oil price volatility, CAPEX constraints, enhanced efficiency needs, rapid time to market, sustainability and decarbonization, and proactive management of subsea operations are just a few of these challenges. As if this wasn't enough, COVID-19 has added a new set of challenges, such as running oilfield operations with minimum manpower.

These challenges are fueling the industry's journey towards a leaner and more sustainable business model supported by digital innovation. For oilfield operators, the concept of the digital oilfield — a digital twin enabling end-to-end process optimization and efficient remote operations — has been at the center of this innovation process for some years now. For offshore oilfield operators, however, digital oilfield efforts have so far focused more on subsurface/reservoir development and topside production platforms and processing facilities than subsea asset operations.

In fact, a lack of focus on areas such as field layout design, planning, engineering, monitoring and maintenance has been the missing link for a truly holistic approach to the digital oilfield and a source of inefficiency.

Subsea field developments include some of the industry's most complex projects, involving a variety of suppliers, such as oilfield service providers, engineering procurement and construction (EPC) companies, project management consultancies (PMCs), and original equipment manufacturers (OEMs), to name but a few. O&G companies generally do not have the in-house capabilities to ingest, aggregate, analyze, and interpret all input from various sources using legacy IT. Moreover, the lack of visualization and collaborative platforms challenges oilfield operators with operational delays, a longer turnaround of business information, longer approval cycles, and less informed decision making.

In the wake of the first wave of the COVID-19 pandemic, remote asset management solutions, including digital twins, have attracted significant attention from oilfield asset owners. This time, the

KEY TAKEAWAYS » The adoption of digital twins in the O&Gindustry is essentially centered on assetoperations. While many O&G companiesare still experimenting with thetechnology construct, IDC data indicatesgrowing adoption over the past few years.

» IDC predicts that "by 2022, 90% of deep‐water operators will use subsea‐processing digital twins on new projects."

» As the industry recovers from thepandemic‐induced economic standstill and the oil price steadies above the $50 mark, oil majors are gradually returning to warm to high‐risk‐high‐reward deep sea projects. This potential shift in upstream exploration and production (E&P) strategies is fueling interest in subsea digital twins.

AT A GLANCE

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Closing the Digital Oilfield Divide with Subsea Digital Twins

focus seemed to extend from the offshore platforms' topside to the subsea assets and related operations. Field operators are now looking for digital solutions that can transform the way they usually deal with the various stages of oilfield development and the related subsea capital projects.

The Operational Digital Twin: An Archetype for the Subsea Space

IDC defines digital twins as the exact digital replica of physical assets, processes, or systems. They integrate multisource data from Internet-of-Things (IoT) sensors, connected equipment and engineering systems of records and convert them into insights to predict and optimize performance leveraging simulation capabilities.

An operational digital twin is more of a technology construct and a methodology for integrating data across multiple systems and modelling assets and processes rather than a commercial solution. It consists of three main parts: the physical asset or process in real space, the virtual asset or process in virtual space, and the connected data model that ties them together.

FIGURE 1 Digital Twin Adoption Among European O&G Companies

Source: IDC, 2019

The adoption of digital twins in the industry is essentially centered on asset operations. While many O&G companies are still experimenting with the technology construct, IDC data clearly points to growing adoption over the past few years.

"By 2022, 90% of deep-water operators will use subsea-processing digital twins on new projects."

(IDC FutureScape: Worldwide Oil and Gas 2020 Predictions)

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The Benefits of Digital Twins for Agile Subsea Field Development

As the industry recovers from the pandemic-induced economic standstill and the oil price steadies above the $50 mark, oil majors are gradually returning to warm to high-risk-high-reward deep-sea projects. This potential shift in upstream exploration and production (E&P) strategies is fueling interest in subsea digital twins.

Functionally, visualization, simulation, and collaboration are among the most significant value drivers for digital twins among oilfield operators.

Visualization

To this day, even in the digital era, some field operators and EPC companies still work together through hard-copy drawings and charts. Most, of course, have upgraded to digital design and produce digital copies of the field layout in a CAD environment. However, as a largely static artifact, CAD too can be inefficient, as minor changes require specialized skills and design time. "Digitally-determined" oilfield operators need dynamic updates with near real-time visualization of their subsea assets contextualized with other subsea data, such as the seabed swath. With a digital twin approach, the visualization experience can be enhanced through context-rich 2D and 3D view options. A subsea digital twin can also offer visual marine and installation planning schedules and increased clarity on deadlines, achievements, and status gates.

Simulation

Simulation capabilities form the core of a digital twin and are what really sets it apart from static asset representations. A digital twin allows, for example, the simulation and visualization of the future compatibility and performance of an asset design without having to install or build them physically. The simulation platform enables engineers and designers to plan and virtually modify subsea assets to achieve an optimized field layout. This enables field designers to constantly reality-check their development plans.

Collaborative Operations

Particularly when leveraging cloud as its underlying IT infrastructure, a digital twin is intrinsically a dynamic information sharing platform. It allows real-time visualization and accessibility of project-specific data models, analytics, insights, and other operational information among all stakeholders, from field designers to the operator's management and EPC contractor. This in turn supports a rapid and informed decision-making process, improving the cost and schedule compliance of capital projects.

Considering FutureOn FutureOn is an international subsea digital twin PaaS and SaaS provider. Its solutions are designed to help offshore O&G and renewable energy operators efficiently manage subsea field development.

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The company brings value to its clients by facilitating critical domain data consumption, visualization, collaborative operations, analytics, and providing quicker field design tools.

Turning Subsea Data into Business Value

Working with siloed engineering software solutions, operators often struggle to access contextualized data on one platform and experience multiple constraints sharing operations-critical data with other key stakeholders located globally. This stunts organizational efforts towards data-driven decision making and risks yielding suboptimal designs. FutureOn's FieldTwin is a data platform providing offshore field operators with core capabilities around visualization and collaboration, designed for engineering teams to see things clearly and work together efficiently.

The following summarizes how FutureOn helps its clients address subsea-specific operational challenges.

Geospatial-Enabled Digital Platform

Geospatial capabilities are a necessity for any digital platform designed to develop and manage dispersed and linear assets in the subsea domain. All EPCs and oilfield operators rely on GIS systems to store, view, and work on subsea data, but they often work in silos. FutureOn's FieldTwin platform allows end users to create and access integrated geospatial layouts.

Open API

FieldTwin is designed to be programmatically interfaced with other systems in the subsea and subsurface domain. It offers an open API and multiple machine-to-machine communications protocols, allowing operators to quickly interface with other software and services as well as connect equipment and sensors. The API has been made available to a large ecosystem of subsea technology providers, enabling multi-vendor integrated services for the oilfield owner.

Subsea Operational Digital Twin

FieldTwin is a digital twin focusing specifically on below-the-waterline operating assets — an often-overlooked area for digital platforms. By bridging the gap between existing reservoir and topside data domains, FutureOn enables field operators to develop a comprehensive digital model of their field operations during the early concept development stage. This approach enables oilfield operators to capture insights from the entire upstream flow — from the subsurface reservoir, through wells, subsea pipelines, risers, and up to the topside of the O&G platform — into a single data model for efficient planning and operations.

Interoperability and standards

FutureOn works with international standard-setting bodies, from OSDU to NORSOK and IOGP, and the metadata model available on the FieldTwin platform is fully configurable and can support a multiplicity of standards. FieldTwin also supports multiple industry-level data types and formats for

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3D models (e.g., 3DS Max, STEP, CATIA), map data (WMS, WFS, ArcGIS), well data (Compass, DecisionSpace), pipelines (geoJSON, Shape Files, XYZ), as well as various output formats.

Analytics

FutureOn integrates wide-ranging industry-standard algorithms and analytics tools leveraging its partner ecosystem, from Schlumberger to Bentley, OliaSoft, PETEX, and Kongsberg Digital. For instance, Schlumberger's OLGA, a multiphase transient flow analysis and simulation tool, will feature an inbuilt interface for FieldTwin in its next release. So, if Schlumberger needs data support from the entire process flow from the reservoir to subsea to the topside, it can pull data from FutureOn's FieldTwin directly for the entire flow path from reservoir to topside asset.

Efficient Subsea Field Design and Faster Proof of Concept

FutureOn's digital twin technology is specifically designed to enable field operators to integrate disparate data sources into a single platform. The following features enable operators and their subsea engineers to efficiently perform field development tasks.

Project Dashboard and Field Layout Module

The useful data types that FieldTwin blends for field development projects include an operator's geospatial data, bathymetry data, reservoir horizons, well data, existing pipeline data, and subsea asset data. Once all relevant data is imported, field designers can access the integrated data model in 3D, allowing them to visualize contextual data with ease. For instance, the integrated view of the seabed layer, underlain by a reservoir horizon and populated with all the existing well data, can have a significant impact on design and planning work, such as the creation of a new well or planning of a new pipeline route in the proximity of a critical subsea system like a gas riser.

Besides importing the existing well database in the well planning phase, subsea engineers can also create new well paths within the FieldTwin platform. Using integrated algorithms, engineers can define the desired well trajectory. With a view of all well locations and exiting subsea systems, engineers can optimize the design of new tie-ins with existing wells.

Another key feature in the Layout Module is a minimum bend radius tool providing subsea engineers with the ability to plan safe pipeline curvature and related laying processes.

Asset Library

FutureOn's FieldTwin offers an asset library containing a comprehensive list of subsea objects, such as oil production pipes, flowlines, PLEMs, jumpers, risers. FieldTwin's intuitive tools allow designers to easily drag and drop equipment and move or rotate them and connect them with other subsea objects. FieldTwin also allows users to create specific asset types and build their own asset library and utilize it for rapid field design and planning. To support oil companies' energy transition efforts, FutureOn is also adding wind turbines, PV systems, electrolyzers, hydrogen storage, and many other new asset types.

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FIGURE 2 FieldTwin Platform in Action

Source: FutureOn, 2021

Meeting the Challenges The subsea digital twin solution is still a growing market. FutureOn is currently focusing on the field concept and design phase. To remain relevant in the rapidly evolving subsea digitalization market, the company will need to develop its capabilities to address field operators' challenges throughout the field's lifecycle, such as design, build, and operate.

The company's go-to-market challenge include keeping up with the overly bureaucratic and complex procurement process in most O&G companies. Though the entire industry has embarked on the DX journey, many are stuck with execution challenges. As a result, some companies still operate with less digitalized business processes, including procurement, which inevitably slows technology sourcing.

Some oilfield software providers are increasing their technological capabilities to capture the growing digitalization opportunity in the oilfield. While not all vendors offer full-stack subsea digital twin platforms, many have specialized in critically required functionalities, from asset-specific analytics to engineering simulation and visualization. This makes capability mapping increasingly complex for oilfield operators.

At the same time, as the industry transitions to new energy sources and considers ways to reduce or eliminate carbon emissions from new or existing facilities, FutureOn is researching carbon footprint analysis tools and methods to consider electrification, adding adjacent wind farms and equipment to support blue and green hydrogen production. These emerging tools will be tightly integrated with the FieldTwin platform.

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IDC Recommendations for Tech Buyers Upstream O&G players and oilfield EPC companies should consider the following recommendations when considering a digital twin solution:

Connect the end-to-end upstream flow from subsurface to subsea to the topside with a view tobuilding a holistic digital twin to extract maximum value from oilfield digitalization efforts.Upstream companies are exposed to a great deal of commercial pressure when it comes to digitaloilfield solutions and services. It is important to never lose sight of the bigger picture: digitalizingend-to-end oilfield operations.

Build your data model and digital thread (i.e., digital links between domains and data sourcesduring each stage of the asset life cycle) concurrently, as these are foundational to leveragingdigital twins for operations and the iterative improvement of assets and processes.

Don't forget that advanced simulation combined with a platform for design modelmanagement is the engine that makes digital twins usable as "live," predictive replicas of assetsand processes for operations and improvement.

Ensure the digital twin solution can be flexibly consumed — a lightweight model forvisualization, to a full-fidelity model for operation and quality improvement.

Ensure your digital twin provider can support your DX journey in the operational space. Itmust have a clear vision and a road map to support upgrades such as IoT integration for betterasset data capture; AI and ML for augmented decision making; or AR and 3D for the visualconsumption of information.

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About the Analyst

MESSAGE FROM THE SPONSOR

Offshore field design has traditionally been an onerous and lengthy task involving multiple data sources and systems, siloed departments, and working with large margins in cost estimates. These factors lead to lengthy decision processes that cost an operator time to first oil. By combining disparate data sources through an open API into one cloud‐based visualization platform, FutureOn provides operators with a more collaborative way to offshore field design.

Gaurav Verma, Research Manager, IDC Energy Insights

Gaurav Verma is a research manager for IDC Energy Insights Europe, focused on the O&G industry. He advises both vendors and end-user clients on how digital technologies can further innovate and transform the existing operational methodology in the O&G industry. His main areas of focus include digital transformation, IT/OT convergence strategies, business advisory, and industry trend analysis for the O&G industry

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closing the digital oilfield divide with subsea digital twins

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