Leading Integrated Reservoir Studies: Practical Advice

John H Martin

John H Martin Associates LtdRESERVOIR DEVELOPMENT CONSULTANTS

Presentation for SPE London Meeting panel discussion on ‘Virtual Teams’

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presentation

‘Virtual Team’

Geographically dispersed

Work apart more than in same location

Primarily interact electronically; meet face to face occasionally

Free agents From various ‘expert’

groups Part-time; ad-hoc Conflicting loyalties Inter-personal

process absent Arms-length

commitment

Integrated Reservoir Integrated Reservoir StudyStudy

full-field reservoir simulationfull-field reservoir simulation updating STOIIPupdating STOIIP planning a horizontal wellplanning a horizontal well preparing for an equity preparing for an equity selecting core plugs for selecting core plugs for

SCALSCAL

Requires significant effort

Addresses a problem associated with a petroleum reservoir

Up to several months/years

Involves personnel from 2+ technical disciplines

All these are PROJECTS

Organised set of planned activities designed to achieve a set of prescribed objectives• Some element of uniqueness• Goal-oriented• Consist of connected & interrelated

activities• Specific start & end points• (usually) cost &/or time

constraints………..

well log response

…….and often cut across functional and/or organisational lines

RCAL and SCAL

depositional environment

(intrawell)flowmeters

geological model (interwell)

perforation data

transient pressure tests

PermeabilityModel

Flatter management structures for project-based organisations

____ Control

- - - - Communication

CoordinationProject E

Project C

Project B

Project A

Project D

____ Control

- - - - Communication

Coordination

Project C

Project A

Project D

1.ESTABLISH

OBJECTIVES

2.PLAN

3.SCHEDULE

4.CONTROL

5.CAPTURE LESSONS

Tailoring PM techniques to assist the project leader

Focus on project definition & planning

Methods to handle differences between reservoir studies & ‘traditional’ projects

Techniques for integrating the work of geoscientists & engineers

Virtual

Fundamental Attributes

Purpose• statement of business need

to be achieved

Objectives• quantitative and qualitative

measures by which completion will be judged

WHY are we doing this project?

Objectives of Integrated Objectives of Integrated Reservoir StudiesReservoir Studies

Need to be specific and detailed Define ALL objectives Consider value of additional objectives Prioritise Ensure that objectives are appropriate

Time Quality

Cost

Scope: also a key element of the project model Work

anticipated to fall within the remit of the project….

Or which will fall outside its remit

Project

SCOPE

Reservoir Management Reservoir Management StudyStudy

Objectives• Reconcile geological model & MB

STOOIP• Assess extent to which all areas/layers

are being waterflooded effectively• Identify infill drilling locations• Define long-term depletion strategy

Scope• Emphasise accurate

reservoir description and use of reservoir monitoring results

• Resolve all possible questions with classical hand calculations

• Use more sophisticated techniques if necessary

Identify Activities

Project manager may make first pass • if more experienced than team

members • or when time short

Does not build team spirit Danger of some activities being

overlooked

ESTABLISHOBJECTIVES

PLAN

Brainstorming: by 'planning' team

Use wall, board or flip chart with 'post-it' stickers

Generate as many 'ideas' as possible

Do not worry about what order the 'chunks' come in

Include whole project initially

Don't expect to 'get it right' first time

Encourages strategic thinking by team

EVALUATE CORES

ZONE RESERVOIR

CALIBRATE WIRELINE LOGS

EVALUATE POROPERM

MAKE ISOCHORE MAPS

ANALYSE MIN & PET

DEPTH MATCH AGAINST LOGS

SAMPLE CORES

CORRELATE WELLS

DETAILS FOR LATER USEPoint-count thin sections

Analyse by XRDPrepare thin sections

Hints on identifying activities

Chose meaningful description• Each activity should

have name which contains active verb and object

Include activities which might not involve much effort, but incorporate waiting time

Not helpful to get bogged down in excessive detail

Also avoid excessive generalisation

EVALUATE CORES

ZONE RESERVOIR

CALIBRATE WIRELINE LOGS

EVALUATE POROPERM

MAKE ISOCHORE MAPS

ANALYSE MIN & PET

DEPTH MATCH AGAINST LOGS

SAMPLE CORES

CORRELATE WELLS

DETAILS FOR LATER USEPoint-count thin sections

Analyse by XRDPrepare thin sections

displayed in precedence diagram(s) shows procedural relationships

• which need to precede• which can be done concurrently

activities/relationships identified; ambiguity avoided

an effective means of communication

Plan: ‘a graphical representation of work to be carried out - a network

Location & ordering of activities indicates precedence only

no “looping”

Important Events

Merge

BurstActivity 1

Activity 2

Activity 3

Activity C

Helpful in determining Milestones

‘Nesting’ Networks

Activity A

Activity B

Constructing precedence diagrams

1.ESTABLISH

OBJECTIVES

2.PLAN

SCHEDULE

Define resource availability Identify critical path Review, revise and agree

project schedule

Critical Activity vs. Critical Path Activity

Critical Activity ‘activity whose successful completion

is essential to overall success of project’

- formulating geological model - permeabilities - relative permeabilities

Critical Path Activity ‘activity whose late completion will

delay completion date of project’

Start

Result path

Activities

Milestones

End

Milestone Plan Measuring points within project Also decision points

Prepare a Project Definition Document A statement of understanding

• to commence project planning • to avoid overlap or omission

Important part of documentation • projects may run for longer than postings• basic reading for any newcomers

Purpose, scope, objectives, constraints

Activity descriptions, precedence diagrams, schedule, milestones

Essential for aVirtual Team

Monitor progress against plan

Precedence diagram Gantt chart Relatively straightforward,

but who should be responsible?

1.ESTABLISH

OBJECTIVES

2.PLAN

3.SCHEDULE

CONTROL

Why we work on some activities

Interesting?

boss is very interested?

know how to do – experience?

on top of ‘in basket’?

data are readily available?

‘in the mood’ important (critical

activity)?

critical path

activity?

Budget total

forecastPlanned spend

The ‘S’-curve

actual spend

Low value assigned to WIP

high value assigned to WIP

Achievement £K

Cost

£K

Monitoring against cost Traditional

methods not suited

Timesheeting may not be sufficient

Simple cost vs. achievement method works well

1.ESTABLISH

OBJECTIVES

2.PLAN

3.SCHEDULE

4.CONTROL

CAPTURELESSONS

Technical reporting•collection of viewgraphs

rarely enough!Project templates

Time

Loss of knowledge during Field Development

IntegrateIntegrated d Reservoir Reservoir StudiesStudies

‘‘Traditional’ Traditional’ ProjectsProjects

vs.vs.

Objectives less clear at start of study?

May be critical in designing the study correctly

Approach: Carry out mini-project with objective

‘formulate detailed objectives of study’ Include activities in network diagram –

‘refine objectives’ or ‘define additional objectives’

Suggestions: identify key uncertainties explicitly in

precedence diagrams•yes/no•approach #1 or approach #2•‘define approach’

plan and schedule critical alternatives

Greater uncertainty as to approaches to be taken?

data integration history matching development options +

geological uncertainty

Uncertain activity durations

Approach: where uncertainty will

have significant impact on overall schedule, make three estimates and assess effect

Approach: identify events that could yield new

data include relevant activities in network

diagram as reminder to stay alert

Greater potential for ‘recycling’ back to an earlier activity

new data from field information from other fields in basin improvements in technology

Approach: train personnel in PM techniques give ‘lead’ in planning to committed

person use part-time Project Planner

•initial planning•periodic updates

Magnitude of expenditure much less Need for full-time Project Management

staff difficult to justify

Approach: avoid need for ‘shortcuts’ at end of

project create basis for quality checks through

detailed planning & documentation conduct external audits at milestones

No formal quality control programmes

Geological StrategiesGeological Strategies

Agree specific guidelines Make results accessible Reservoir description as simple

as possible but no simpler Define 'degrees of freedom' in

geological model Don't underestimate uncertainty Make use of subsurface

analogues

Give geologist specific guidelines Ensure that assumptions are reasonable History matching should be collaborative Revisit geological model prior to acting

on recommendations

Strategies for reservoir engineers

‘Designer’ formats: useful integration methods

important relationships are subtle

standard displays are too ‘busy’

• e.g. CPIs; welltest interpretations, core descriptions

what needs to be integrated varies

people ‘see’ results differently

Design formats for entire team

Virtual

Team-building

Are ‘team-building’ events really worthwhile?

Best ‘team-building’ is working together on an important, well-defined problem!

Appropriate planning at outset will benefit all stages of team work

Virtual

Merely forming a team doesn't ensure success - in integration or otherwise!

Virtual

A generic project model

Modifications of basic PM approaches for integrated reservoir studies

Basic PM courses are just a starting point?• R&D PM approach• ‘Rolling Wave’ planning

Using ‘PM’ software is not enough• fixed dates, Gantt chart displays, rather

than focussing initially on precedences More effort to ‘capture the lessons’