Equipment Condition Monitor Boosts Production

And Reduces Operating Costs For Oil & Gas Company

Challenge

Field operators would travel predetermined routes, checking

each well on a regular basis, dealing with issues at each well site

as they arose. With little real-time well surveillance technology in

place, production problems caused by sanding or mechanical

equipment failures were often unnoticed for many hours.

Solution

Equipment Condition Monitor was implemented and met the

clients objectives, exceeding their expectations. Production

improvements and cost savings were realized quickly, resulting in

full deployment across all 2500 wells in the field.

Advantage

Reduced unplanned outages

Increased production efficiency

Reduced variable operating costs by reducing the number

and duration of well interventions

Reduced fixed operating costs by moving to a centralized

well monitoring solution

Well Visitations Just Arent Good Enough

Operating nearly 2,500 oil wells distributed over a large

geographical area, management at a large oil and gas company

believed they could improve production and lower operating

costs by better managing their field assets.

Previously, field operators traveled predetermined routes,

checking each well on a regular basis, dealing with issues at

each well site as they arose a very typical operating model for

onshore assets today. With little real-time well surveillance

technology in place, production problems caused by sanding or

mechanical equipment failures were often unnoticed for many

hours.

Recognizing the inherent problems associated with managing the

wells in a reactive manner, the company decided to move to a

predictive, condition-based operating model. They contacted

Matrikon with a number of key objectives:

1. Maximize production by minimizing unplanned outages

through the prediction and prevention of abnormal well

conditions.

2. Provide a way to ensure wells are producing in the

sweet spotcontinuously matching lift pumping with

natural inflow from the reservoir.

3. Reduce variable operating costs by reducing the

number and duration of well interventions and

workovers.

4. Reduce fixed operating costs by moving to a centralized

well monitoring solution, allowing field operations staff to

concentrate on continuous improvement and operational

excellence.

Lower Operating and Servicing Costs, Increased Production

By decreasing the length and duration of unplanned outages and

accurately determining optimal pumping rates, the company

realized an average 5.5% increase in production from the field.

Simultaneously, well servicing costs have been reduced by 50%

through the early detection of abnormal operating conditions and

equipment failures, by reducing the number of workovers, and by

enabling faster, lighter remediations. The net benefit reported to

company management on this project was approximately 60

million dollars annually.

Title of Document 2

For more information:

For more information about Equipment

Condition Monitor, visit our website

www.honeywell.com/ps or contact your

Honeywell account manager.

www.matrikon.com

ecm@matrikon.com

Honeywell Process Solutions

1250 West Sam Houston Parkway South

Houston, TX 77042

Lovelace Road, Southern Industrial Estate

Bracknell, Berkshire, England RG12 8WD

Shanghai City Centre, 100 Junyi Road

Shanghai, China 20051

www.honeywell.com/ps

Well Monitoring Return on Investment

Current Production: 100,000 bbl/day.

Moving to a condition-based operating and maintenance

model based on Matrikon's well optimization solution has

delivered an average 5.5% increase, or 5500 bbl/day.

At a market price of $30/bbl, approximately $60 million

dollars in benefits are being realized annually.

Figure 1 - Patented TreeMapping technology allows users to visualize performance and fault statistics for large numbers of assets on a single screen. In this example, the color of each box indicates the number of faults while the size of each box indicates well production for 491 different wells.

SS 503

July 2011

2011 Honeywell Internati onal Inc.