maximizing the value and recovery of oil & gas resources the...maximizing the value and recovery...
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Maximizing the Value and Recovery of Oil & Gas Resources
Petroleum Exploration and Development Research Institute of SINOPEC
Li guangchao
Sep. 2015
Bangkok, Thailand
E-mail : [email protected]
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Business affairs of SINOPEC
China
Upstream （E&D）
Downstream （ Refining）
Sales
Oversea
Upstream
SINOPEC International Petroleum Exploration and
Production Corporation (SIPC)
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I. What Data/Information Are Needed (From the Field,subsidiaries, etc)?
II. Data Analysis And What Specific Knowledge /Expertise Are Required?
III. Process And Decision Gates for Investment Decisions On New Projects (And Additional Investments On Existing Projects)
IV. What Action/Policies Are Needed From The Regulators To Maximize Value Of An Asset?
V. Example of estimating and booking reserves from secondary and tertiary recovery
Outlines
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Asset Type for SINOPEC Data/Information Needed
Operating Assets Almost all kinds of data/Information of Asset.
JV Assets More details about data/Information
Sharing Assets Main data/Information of Asset. Such as FDP, Reserves , investment, production, sales, profits.
For SINOPEC oversea Upstream affairs, different assets types with different data /information
needed. This is diversity management.
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I. What Data/Information Are Needed (From the Field)
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Generally, for SINOPEC operating assets , there are 3 approaches in maximizing the
value and recovery of oil & gas resources:
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I. What Data/Information Are Needed (From the Field)
G&G
Development & Production
Facilities & Gathering
Finance And Accounting
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4 very important kinds of professional data for research to get more recoverable quantities of oil & gas in water flooding or infill drilling.
Main G&G Data / Information Needed
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• 2D Seismic
• 3D Seismic
• Logging
• Core Data.
• Mapping Structure • Area , • Fault, • Net Pay, • Porosity, • Sedimentation, • Reservoir Heterogeneity & Continuity, • Setting Up 3D Static Model • The Estimation of Reserves and Resources
Volumes.
Using for
Static data
Development &Production Data / Information Needed
• DST- Testing
• Core Testing Data
• PVT Data
• Pressure
• Production of Oil, Gas, Water
• Injection Data
• Drilling Data
• Well Completion Data
• Reserves & Resources Data
Using for
• Productivity of wells
• Permeability
• Saturation
• Driving mechanism
• Recovery Factor
• Setting up Reservoir Dynamic Model
• Production Performance Analysis
• Forecast production
• R&R evaluation
• FDP/WPB
Dynamic data
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Facilities &Gathering Data / Information
• Designing capacity
• Processing
• CPF status
• FPSO status
• Pipelines
• New Facilities construction
Using for • Process, Delivery and transport
• Ensure safe producing
• CAPEX
• OPEX
• Oil & gas Price
• Sales Production
• Income
Economic Data Needed
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Using for • Economic Evaluation
• Profits Calculation
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Geologist
Reservoir Engineer
Facilities Engineer
Economist
II. Data Analysis and Specific Knowledge /Expertise Required
• Seismic Interpretation
• Structural Setting
• logging data analysis
• Reservoir characteristics
• 3D model
II. Data Analysis and Specific Knowledge /Expertise Required
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For a geologist, the specific knowledge /expertise includes:
•Reservoir Dynamic Model and Numerical Simulation
•Drafting FDP
•Production Performance Analysis
•Making Long-term plan & WPB
•Reserves & resources evaluation.
II. Data Analysis and Specific Knowledge /Expertise Required
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As an reservoir engineer with specific /expertise knowledge :
•Analyze the current status of facilities, and main challenge
•Analyze the capacity of oil/gas gathering and treatment system, including gathering
flowlines, metering station, gathering station, central process station, etc.
•Facilities Design Expertise
•Knowledge about facilities maintenance
II. Data Analysis and Specific Knowledge /Expertise Required
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For a facilities engineer, specific knowledge /expertise required:
•Study economic Performance
•Review and analyze the investment & income data,
•Set up economic model
• Economic evaluation with economic model
II. Data Analysis and Specific Knowledge /Expertise Required
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As an economist , specific knowledge /expertise required:
III. Process and Decision Gates for Investment Decisions on New Projects
+
Cas
h F
low
time
= Investment Decisions
= Economic Analysis
Sc
reen
ing
Expl
orat
ion
Appr
aisa
l S
elec
t
FID
Primary Development
Redevelopment,
Abandonment
NPV
Def
ine
Identify Select Define execute Operate 1 4 3 2
FID Start-up
-
FDP
Cartogram for the Whole Life Cycle of a Project
Y-axis
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Maximizing the Value and Recovery
CDP
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Redevelopment research（infill drilling）
• G&G re-research
• Updating reservoir model
• Remaining oil analysis(where, why?)
• Well pattern spacing study
• Well location optimized
• Redevelopment plan
• Drilling And Well Engineering
• Facilities & Gathering
• Economics
reco
very
fact
or
well spacing density（well/km2）
Ⅰ
Ⅱ
Ⅲ
Ⅳ
Ⅴ
Relationgship of well spacing density and recovery factorunder different flow coefficient
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Redevelopment is to ensure:
• Reliable subsurface assessment
• Robust development plan
• Appropriate well and facility design and cost estimation
• Reliable project schedule
• High capital efficiency
• Use best practices and feasible technique
Initial Oil price
New oil price
Production profile before Optimization
the value in initial oil price
Production profile after Optimization
V3: loss in contract period
Contract Period
Construction period
PRO
DU
CTI
ON
O
il P
rice
Economic evaluation would be done for each
investment decision gate , and continually modified
and optimized as conditions change.
the value in new oil price
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V2 ≥ (V1+V3+V4)
IV. What Action/Policies Needed from the Regulators to Maximize Value Of An Asset
• Try to get more advantages in commercial & fiscal terms
• Better sales proportion (lower domestic sale and higher international sale )
• Tax /fee relief when low oil price
• Extended contract period.
• Market environment
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V. Example of estimating and booking reserves from secondary and tertiary recovery
WFP goes smoothly in 2011. It has seen a steady increase of oil production since the water injection
rate has increased to 1700BWPD per well. It is estimated that total incremental is around 178.2 MBbl.
• Water Flooding Pilot
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In January 2013，two wells were stimulated with nitrogen and foam according to the suggestion of
Chinese experts. The pilot received a good response in both wells. G-H5, for instance, the peak
BOPD was 240, the efficient hot producing period is around 80 days, the estimated incremental oil
is 10 MBbl.
• Nitrogen gas Foam Injection Pilot
Thanks for Your Attention !
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