management in oil and gas

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M A N A G E M E N T 54 MAY 1998 • SUMMARY A project to improve integration of data and computer applications for exploration, appraisal, and field-development planning is ongo- ing at Sarawak Shell Bhd. An increased awareness of the impor- tance of data as an asset has resulted in definition of a project aimed at improving the exploitation and management of this asset. This is expected to affect business through increased staff productivity and realization of new development opportunities through better sub- surface interpretation and field management. INTRODUCTION During 1995–96, Sarawak Shell underwent an organizational review to transform itself into an asset-based organization. Integrated asset teams that encompass exploration, development, and reservoir-management activities were formed. During the review phase, subsurface- and surface-data management were iden- tified as key areas that needed to be addressed and improved. Small teams were subsequently set up to define the scope and terms of reference for these projects. This paper describes the objectives and setup of the Subsurface Data Integration (SSDI) project. PROJECT MANAGEMENT AND LOGISTICS The goal of the SSDI project is to address the following main activ- ities: data integration, project and corporate databases, applica- tions-portfolio management, data ownership, and procedures. Fig. 1 shows the data challenge, a key value driver for the initiative. The data challenge is from an in-house Shell study that suggested that technical professionals spend 60% of their time looking for data. The SSDI project team coordinates and drives the project and helps the business units implement the improvements. A compa- nywide steering group makes key decisions with representatives from these business units and technical service groups. Fig. 2 illus- trates the relationships between the project team, the steering group, and the asset teams. The activities carried out as part of the project are facilitated and supported by the project team but owned and driven by the asset teams through the steering group. This ensures that business requirements drive the tasks and priorities for the project team. DATA INTEGRATION Over the years, a large number of software applications have been implemented to cater to the needs of subsurface interpretation, field-development planning, and reservoir management. Many of these have their own relational databases. In addition, several large corporate databases feed data to these applications. Data transfer and connectivity between these applications and databases have always been difficult issues because many one-to-one links exist between them. General connectivity among all these is hampered because each application and each database has its own data model. The aim of the SSDI project is to integrate the data along the entire business process and to make it available and easily acces- sible to the asset-team technical professionals. For example, the results of seismic interpretation and well correlation would be fed to mapping, then to three-dimensional modeling and simu- lation, next to development planning, and finally to volumetrics and economics. An off-the-shelf solution that would incorporate third-party and Shell packages was not available. Therefore, integration of the var- ious data groups involved has been prioritized and phased (Fig. 3). For data groups that have not yet been included, mapping of data items across databases and applications is necessary to ensure com- patibility. As Fig. 3 shows, the main data groups covered during the first year of the project are topography, geology, seismic, log, and core data. In addition, some other data were included in some of the project databases on request. In this way, the SSDI team learns about points on these data groups early in the project. PROJECT AND CORPORATE DATABASES At the start of the project, no single database existed that would address all the needs. Fig. 4 shows the database structure that is being implemented. It is based on a combination of Landmark's Openworks and Shell's proprietary Petroleum Engineering Integrated Environment, which includes IBM's Project Data Store. The structure with two project databases is not ideal and may lead to difficulties maintaining the integrity of data between them. The choice of this solution was driven, however, by the desire to imple- ment fast and by the strategy to refrain from building new software packages. Project databases have been set up for most of the assets, and the first benefits are being reaped in faster turn-around time for subsurface interpretations, leading to better understanding of the subsurface and more development opportunities. APPLICATIONS-PORTFOLIO MANAGEMENT Management of the portfolio of applications and databases improves the effectiveness of the company's investment in infor- mation technology (IT). Where decisions for purchase or develop- ment of software previously were made by different groups (e.g., exploration and development), the asset-based organization allows a companywide approach. This leads to a rationalization of the number of applications packages and eliminates overlaps between corporate databases. A selected number of applications forming the heart of the business process are tightly linked to the project databases and given maximum support level. For other applications, a lower level of linking and support is acceptable. In some cases, asset teams or business units may justify an outstep for business requirements (i.e., they may pay for and support an application for a specific purpose). MANAGING DATA ASSETS TO IMPROVE BUSINESS PERFORMANCE P.C. Lesslar and F.G. van den Berg, SPE, Sarawak Shell Bhd. Copyright 1998 Society of Petroleum Engineers Original SPE manuscript received 1 January 1998. Paper (SPE 39728) originally presented at the 1998 SPE Asia Pacific Conference on Integrated Modeling for Asset Management held in Kuala Lumpur, 23–24 March. This paper has not been peer reviewed.

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Page 1: Management in Oil and Gas

M A N A G E M E N T

54 MAY 1998 •

SUMMARYA project to improve integration of data and computer applicationsfor exploration, appraisal, and field-development planning is ongo-ing at Sarawak Shell Bhd. An increased awareness of the impor-tance of data as an asset has resulted in definition of a project aimedat improving the exploitation and management of this asset. This isexpected to affect business through increased staff productivity andrealization of new development opportunities through better sub-surface interpretation and field management.

INTRODUCTIONDuring 1995–96, Sarawak Shell underwent an organizationalreview to transform itself into an asset-based organization.Integrated asset teams that encompass exploration, development,and reservoir-management activities were formed. During thereview phase, subsurface- and surface-data management were iden-tified as key areas that needed to be addressed and improved. Smallteams were subsequently set up to define the scope and terms ofreference for these projects. This paper describes the objectives andsetup of the Subsurface Data Integration (SSDI) project.

PROJECT MANAGEMENT AND LOGISTICSThe goal of the SSDI project is to address the following main activ-ities: data integration, project and corporate databases, applica-tions-portfolio management, data ownership, and procedures. Fig.1 shows the data challenge, a key value driver for the initiative. Thedata challenge is from an in-house Shell study that suggested thattechnical professionals spend 60% of their time looking for data.

The SSDI project team coordinates and drives the project andhelps the business units implement the improvements. A compa-nywide steering group makes key decisions with representativesfrom these business units and technical service groups. Fig. 2 illus-trates the relationships between the project team, the steeringgroup, and the asset teams. The activities carried out as part of theproject are facilitated and supported by the project team but ownedand driven by the asset teams through the steering group. Thisensures that business requirements drive the tasks and priorities forthe project team.

DATA INTEGRATIONOver the years, a large number of software applications have beenimplemented to cater to the needs of subsurface interpretation,field-development planning, and reservoir management. Many ofthese have their own relational databases. In addition, several largecorporate databases feed data to these applications. Data transferand connectivity between these applications and databases havealways been difficult issues because many one-to-one links exist

between them. General connectivity among all these is hamperedbecause each application and each database has its own data model.

The aim of the SSDI project is to integrate the data along theentire business process and to make it available and easily acces-sible to the asset-team technical professionals. For example, theresults of seismic interpretation and well correlation would befed to mapping, then to three-dimensional modeling and simu-lation, next to development planning, and finally to volumetricsand economics.

An off-the-shelf solution that would incorporate third-party andShell packages was not available. Therefore, integration of the var-ious data groups involved has been prioritized and phased (Fig. 3).For data groups that have not yet been included, mapping of dataitems across databases and applications is necessary to ensure com-patibility. As Fig. 3 shows, the main data groups covered during thefirst year of the project are topography, geology, seismic, log, andcore data. In addition, some other data were included in some ofthe project databases on request. In this way, the SSDI team learnsabout points on these data groups early in the project.

PROJECT AND CORPORATE DATABASES At the start of the project, no single database existed that wouldaddress all the needs. Fig. 4 shows the database structure that isbeing implemented. It is based on a combination of Landmark'sOpenworks and Shell's proprietary Petroleum EngineeringIntegrated Environment, which includes IBM's Project Data Store.The structure with two project databases is not ideal and may leadto difficulties maintaining the integrity of data between them. Thechoice of this solution was driven, however, by the desire to imple-ment fast and by the strategy to refrain from building new softwarepackages. Project databases have been set up for most of the assets,and the first benefits are being reaped in faster turn-around time forsubsurface interpretations, leading to better understanding of thesubsurface and more development opportunities.

APPLICATIONS-PORTFOLIO MANAGEMENTManagement of the portfolio of applications and databasesimproves the effectiveness of the company's investment in infor-mation technology (IT). Where decisions for purchase or develop-ment of software previously were made by different groups (e.g.,exploration and development), the asset-based organization allowsa companywide approach. This leads to a rationalization of thenumber of applications packages and eliminates overlaps betweencorporate databases.

A selected number of applications forming the heart of thebusiness process are tightly linked to the project databases andgiven maximum support level. For other applications, a lowerlevel of linking and support is acceptable. In some cases, assetteams or business units may justify an outstep for businessrequirements (i.e., they may pay for and support an applicationfor a specific purpose).

MANAGING DATA ASSETS TO IMPROVEBUSINESS PERFORMANCEP.C. Lesslar and F.G. van den Berg, SPE, Sarawak Shell Bhd.

Copyright 1998 Society of Petroleum Engineers

Original SPE manuscript received 1 January 1998. Paper (SPE 39728) originally presented atthe 1998 SPE Asia Pacific Conference on Integrated Modeling for Asset Management held inKuala Lumpur, 23–24 March. This paper has not been peer reviewed.

Page 2: Management in Oil and Gas

• MAY 1998 55

DATA OWNERSHIP AND PROCEDURESAll data available in the company must have an owner who isresponsible for ensuring their availability and validity. To supportthis, procedures must be in place to guide the approach to storage,quality control, naming, and other such factors.

In the past, lack of clear ownership of data has been a key prob-lem in data management. The majority of data types (e.g., well andproduction data) typically are used by many people spread overvarious teams and often are used by teams remote from those whogenerate the data. Most professionals manage only the data neces-sary for their own areas of interest. Also, many data items fall intomore than one discipline (for example, wireline pressure data).This typically results in incomplete or missing data, data that arenot updated, data without an audit trail, or simply data that areinconsistent with respect to standards and conventions.

Fig. 5 shows a framework for defining data ownerships. Theframework has four parties. The asset manager delegates theauthority for all data management to the data-set owner. He or shedistributes the responsibility for the various data groups in the assetto a number of data-value owners who are responsible for actualmanagement of the data (i.e., ensuring completeness, quality con-trol, storage, and adherence to standards and guidelines). Thesestandards and guidelines for all data items are defined by data-def-inition owners, who are senior discipline experts. The last role isthat of the database custodian. Each corporate database has onecompanywide database custodian to look after it.

Within this framework, the intention is to clean up all datainvolved in the subsurface-related business process. In 1998, alldata that are already available in digital form will be tackled. In the

following years, all other data (often in reports, well files, and othersuch forms) will be addressed.

TRANSFER OF KNOWLEDGEIn a project where many activities and goals are being addressed fora large customer base, awareness within the asset teams and trans-fer of knowledge to the teams form essential activities. The projectsetup induces a key element in the transfer of knowledge. Themanpower in the project team is too small to carry out data opera-tions for the asset teams. The project team can only provide thestructure, the tools, and the knowledge. As a result, the asset teamsthemselves provide a significant part of the required manpowerand, in the process, learn from the SSDI team.

In addition, the project team arranges for vendor training on spe-cific packages and for general-database-related hands-on training.Technical presentations are made frequently to stimulate discus-sions and generate user feedback to the project team. Customerawareness has been promoted by an SSDI Web site on Shell'sintranet and by an SSDI coffee mug.

FURTHER INTEGRATIONAnother initiative to improve integration of data within the com-pany is the Surface Data Integration project, which is similar innature to the SSDI project and targets the engineering- and opera-tions-related areas. Management and integration of nontechnicaldata (finance and human resources, for example) also are targetedfor improvement.

Fig. 1—The data challenge is to reduce the amount of time spentlooking for and collating data needed for interpretive work.

Fig. 2—SSDI structure showing relationships: BU=business unit,and TS=technology services.

Fig. 4—Current database structure supporting the E&P community:OW=Openworks, PDS=Project Data Store, and TIES=TigressImport/Export System.

Fig. 3—Data groups progressively added to the project databaseshared attribute set.

ReservoirEngineering Data

Production Data

Mechanical Well Data

Economics, Cost Data

SSDI Steering GroupFive Business UnitsThree Technical Service GroupsOne Capabilities ManagerOne Business Unit ManagerOne Technical Service Group

Manager

SSDI TeamSix Staff

BU ResourcesStaff as Needed(around three tofive).

Steering Group: Manages IT to Evolve Development Concepts• Agrees on scope, budget, resources, and project for management

approval.• Provides technical steering and sets priorities within project scope.• Makes resources available from business units and technical service

groups.• Regularly reviews progress.• Informs management at milestones.• Ensures that interfaces with other Sarawak Shell Bhd. plans, projects,

and systems are addressed.

Topographic Data

Log and Core Data

Seismic Data

Geological Data

Third-Party SpecialistDatabases

Page 3: Management in Oil and Gas

58 MAY 1998 •

In the next year, the goal is to map out and plan integration ofthe data used by the subsurface and surface spheres of interest andof the data that fall between these areas. Typically, such datainclude production data and data needed to optimize productionfor the system of reservoirs, wells, and surface facilities for one ormore platforms.

CONCLUSIONSWith the introduction of the SSDI project, the company has takenmanagement of its data assets seriously. The project addresses sub-surface-data integration, management of the IT portfolio, and datamanagement at a companywide level. Benefits are expected in theareas of increased productivity of technical professionals, better

quality field-development planning, and recognition of moreopportunities for field development and production optimization.

Key factors in the success of the project to date have been thesteering mechanism, providing buy-in from business-unit decisionmakers; the small project team, leading to transfer of knowledge tothe asset teams; the integrated nature of the project, catering toexploration, development, and production requirements; and theproject team's enthusiasm.

ACKNOWLEDGMENTSWe thank Sarawak Shell Bhd. and Petronas for permission to pub-lish this paper. We also thank our enthusiastic and supportive col-leagues who helped to make this project a success.

Philip C. Lesslar is Team Leader ofSubsurface Data Management forSarawak Shell Bhd. in Miri,Sarawak, Malaysia. His technicalinterests are in subsurface-dataintegration, the man/machineinterface, data-access tools, datamining, Web technologies, and ter-

tiary micropaleontology. He has held various positions inmicropaleontology and data management in Malaysia as well asa 3-year crossposting to Shell Intl. in The Hague, TheNetherlands. Frans G. van den Berg is Manager of ProductionOpportunities for Sarawak Shell Bhd. in Miri. His technical inter-ests are in reservoir characterization, subsurface-model building,field-development planning, asset management, and subsurface-data integration. He has worked for Shell in various positions inThe Netherlands, Thailand, and Malaysia. van den Berg holds MSand PhD degrees in physics from Leiden U. in The Netherlands.

Fig. 5—Framework for definition of data ownerships: TDM=topographical data management, SGS=stratigraphical and geo-chemical services, SDE=senior discipline expert, QC=qualitycontrol, and EPT=E&P Technical Services.

Geologist, PetrophysicistProd. Geologist for theField

Business-Unit-LevelOpenworks Project Database

Lesslar van den Berg