planning in oil and gas fields
DESCRIPTION
Planning in Oil and Gas FieldsTRANSCRIPT
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Planning
in
Oil & Gas Field
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PLANNING IS THE SEED FOR SUCCESSPLANNING IS THE SEED FOR SUCCESS
Without a plan, success will be difficult.
Planning defines the activities and describes how the activities will be accomplished. The purpose of plan is to define each task, estimate the time and resources required, and provide a framework for management review and control.
Planning is an iteration process
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Terminology • Scope: of any project is a combination of all individual tasks and their goals.
• Activity They are a division of all the work that needs to be completed in order to accomplish the project goals.
• Resource is something that lies ready for use or that can be drawn upon for aid or to take care of a need. Can be people, equipment, materials or services that are needed to complete various tasks. The amount of resources affects the scope and time of any project.
• Risk is any factor that potentially can jeopardize the successful completion of a project.
• Risk Management is the art and science of identifying, analyzing, and responding to risk factors throughout the life of a project.
• Work Breakdown Structure is a division of tasks that define, organize, and display the work to be accomplished to achieve the specified product or services.
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Plan Triangle
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It is possible (and in some instances mandatory) to setup relationships for the planned Activity
The relationship options are illustrated here:
If no relationships are set the system assumes all activity will be start in start day of the project
(NOTE: Delays/overlaps between finish/start are possible)
• SS - start / start• FF - finish / finish• FS - finish / start• SF - start / finish
EXAMPLEA typical example of a Start / Start relationship would where work needs to be carried out on an offshore platform at sea level by boat. Rather than complete each task step sequentially, returning to shore each instance to pick up necessary resources, it would more beneficial carry out all task steps at the same time in a single trip – a start/start relationship.
0010 Task Step0020 Task Step
0010 Task Step
0020 T. St
SS Start / Start
FS Finish / Start
Relationships
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The Planning Process
WHAT (Objective, scope, and statement of work)
HOW (Approach, work breakdown structures)
WHO (Project organization and resource schedule)
WHEN (Schedule and milestones)
WHERE (Facilities required)
WHAT-IF (Contingency Plans is the event of Risk Events)
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Plan
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ess Plan for Exploration Concession
Government
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Area C (88 km²) located in the southern Gulf of Suez
Only one exploration “dry well" drilled by Shell in 1988
West Tawila is juxtaposed to Pico’s Tawila field to the west, Gemsa SE to the north and close to south Geisum.
Detailed review of the West Tawila block was done in house.
Bids due on 1st December 2009
West Tawila Lease
Gemsa SE Field
Geisum & Tawila Fields
EGPC Exploration Bid Round
West Tawila Concession
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Reserves
Exploration Objectives
Profit
Company Weight
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Health Safety
& Environment
Exploration Scope of Work
Sub-Surface Studies
Drilling & Logs
Evaluation
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Health Safety & Environment
Environment Impact Assessment
Available Location
For Facilities
Risk Assessment
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Sub-Surface Studies
Review
Seismic Acquisition
Seismic Processing
Seismic Interpretation
Seismic Mapping
G&G Mapping
Assign Location &
Well Proposal
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Plan
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ess Drilling & Logs
Hiring a Rig
Obtain Approvals
Secure Drilling material
Execution
Reserves Evaluation
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Now that we have found a promising geological structure and acquired the petroleum rights, it is time to go ahead and drill. Regardless of all the sophisticated geological and geophysical mapping that has been done, the only way to find out if there is any oil or gas present underground is to drill a well.
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Wildcat Well
Wildcat Well: well that drilled into a geologic structure in which no oil or gas has yet been discovered.
The objective of drilling is to bore a hole (the well bore) into the ground until you penetrate a target rock formation, that has been identified by the geologists and geophysicists as having the potential to contain commercial hydrocarbons.
Formations may contain fluids (oil, water or natural gas) at very high pressures, without taking the appropriate precautions, the fluids would come out of the hole and we'd have what's called a blowout.
Drilling & Logs
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Well Control by Blowout Preventer
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Reserves Evaluation
How Big is our Oil or Gas Field?
• For in between the exploration phase and the development phase there is quite often one other phase: the delineation phase.
• After drilling only one well (the discovery well), Seismic data is very helpful in mapping the size of the underground structure, but the only way to be certain of what parts of the structure contain oil is to drill delineation or step-out wells. Each new well added more information about the field. This information was then used in planning the location of the next delineation well until finally there were enough wells to show the limits of the field.
• After a field has been discovered, it must be developed so that it can be put on production and generate some cash. Developing a field involves the drilling of additional wells to the geologic structure and installing production equipment throughout the field to facilitate commercial production of the oil or gas. The production phase essentially involves getting the oil and/or gas out of the ground, treating the fluids to remove impurities, and taking whatever steps are necessary to keep the wells producing at a profitable rate for as long as possible.
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ess PLAN
XXXX
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Development Phase
The development plan can be generated Based on:
Volumes
P1, P2 and P3
Reservoir Characteristics
Porosity, Permeability and Pressure
Fluid Characteristics
Composition, Density (API) and Viscosity
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Definition of Reserves
Oil reserves are primarily a measure of geological risk - of the probability of oil existing and being producible under current economic conditions using current technology. The three categories of reserves generally used are proven, probable, and possible reserves.
• Proven reserves (P1) - defined as oil and gas "Reasonably Certain" to be producible using current technology at current prices, with current commercial terms and government consent- also known in the industry as 1P.
• Probable reserves (P2) - defined as oil and gas "Reasonably Probable" of being produced using current or likely technology at current prices, with current commercial terms and government consent - This is also known in the industry as 2P or Proven plus probable.
• Possible reserves (P3) - Possible reserves are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. This is also known in the industry as 3P or Proven plus probable plus possible.
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Drilling Plan
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Actual Production vs Drilling Cost
Drilling Cost Vs Production8,800
1,2041,184
2,090
5,373
8,066
9,101
Amal 19$4,591
Amal 16$31,445
Amal 18$18,595
Amal 17$24,908
Amal 15 $23,919
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
J an-07
Feb-07
Mar-07
Apr-07
May-07
J un-07
J ul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
J an-08
Feb-08
Mar-08
Apr-08
May-08
J un-08
J ul-08
Aug-08
Sep-08
Oct-08
Nov-08
Prod
uctio
n
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Expe
nditu
res
OilGas Drilling Exp.
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Amal Field Oil Production Forecast
0
5000
10000
15000
20000
25000
30000
35000
Jan-
09
Jan-
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Jan-
11
Jan-
12
Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Oil Rate
Oil Production Forecast
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Gas Production Forecast
Amal Field Gas Production Forecast
0
30
60
90
120
150
Jan-
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Jan-
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Jan-
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Jan-
12
Jan-
13
Jan-
14
Jan-
15
Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Jan-
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Gas Rate
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well head&
gathering system
inlet
separatorsystem
condensatestabilization system
storage
export pumpexport pump to MELIHAto MELIHA
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inlet
separator
gassweet.
coco22gas
dehy.
H2O vaporH2O vapor
well head&
gathering system
to EPCto EPC
2 nd.. f/coal.. stab.
stor. to MELEHAto MELEHA
w.deg.
to inj.wellto inj.well
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Facilities Plan
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ess Facilities and Drilling Relationship
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AFDP Expenditure Profile
0
7,80
39,
756
15,9
08
9,86
310
,093
9,37
3 10,3
73
13,9
50
4,14
5 5,93
06,
617
10,8
03
27,1
00
4,92
5
2,36
0
340
340
340
240
40
9,04
0
16,8
16
7,36
5
0 0 0
16,0
00
0 0 0 0
16,5
20
21,0
00
21,0
00
21,0
00
12,0
00
0
21,0
00
21,0
00
21,0
00
21,0
00
18,0
00
0 0 0 0 0
183,520
209,520
393,040
32,4
36
26,4
9428
,155
30,4
4932
,260
31,4
30
30,0
09
28,6
66
27,3
73
25,9
91
0
10,000
20,000
30,000
40,000
50,000
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Time by Quarter
Qu
arte
rly
Exp
end
itu
re C
ost
MU
S$
An
d D
aily
Pro
du
ctio
n R
ate
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Cu
mu
lati
ve C
os
t M
US
$
Facilities ExpenditureDrilling ExpenditureCumulative FacilitiesCumulative DrillingCumulative TotalDaily Production Rate
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THE TIME VALUE OF MONEY
We will use common symbols and cash flow diagrams.
Time period
0 1 2 3 4 ….
Cashflowat each period ($)
negative
positive P = present value
F = future value
i = interest rate
n = number of periods
How long is a time period?
Examples? Economics
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Cash Flow Diagram
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Economics
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Present Value of $ 25,000 received in 2010 is equivalent to $ 10,000 received in 2000 (because it could be invested for 10 years)
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THE TIME VALUE OF MONEY
0 1 2 …. n
P F
• Determine the relationships between P and F for n time periods, with compound interest
F = P ( 1 + i )n
• Meaning of “compound”?
• How was this determined?
• What is the meaningof n, i, P and F?
What is the future value of $1000 after 10 years at 10% annual compound interest?
Economics
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Cash Flow Diagram
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• Payback time
The time lapse from the initial expenditure until its cumulative net cash flow
become positive.
• ROI (Return on Investment)= Cum. Income/Total Investment
• NPV
The capital created over and above the interest rate.
Economics Indicators
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