Petroleum Engineering Project Topics

Material Balance Application for Brownfield Development

Material Balance Application for Brownfield Development

Material Balance Application for Brownfield Development

Chapter One

OBJECTIVE OF STUDY

The study objectives include:

  • Allow the field to flow without any workover
  • Work over 3 Reservoirs by completing with Two String Multiple(TSM)
  • Work over 3 Reservoirs (Intervals) by completing with Smart well
  • Economic Analysis of the field development

CHAPTER TWO

  LITERATURE REVIEW

The petroleum industry has advanced from an initial period of unrestrained production, through a period of maximum production controlled by government constraint into a period of declining production where companies plan to make the most profits based on the current management environment. The industry has now moved into a period of challenge. Industry must admit that a substantial amount of oil and gas will remain unrecovered unless enhancements are made in reservoir management or development practices (Wiggins and Startzman, 1990).

Petroleum reservoir management is an area that has created significant discussion within the industry in recent years as assets have declined, prices have fluctuated and companies have begun to realize the necessity for comprehensive planning in reservoir development.

A comprehensive understanding of the petroleum reservoir management process is vital to the proper development and exploitation of oil and gas reserves (Wiggins and Startzman, 1990).

 RESERVOIR MANAGEMENT

There are several definitions of reservoir management as there are authors on this topic. The fact that there have been so many attempts, and that there is still no generally accepted definition of the term emphasizes what reservoir management is within the industry (Sawabini and Sawabini, 1997).

Reservoir Management is all about excellence in the Operate phase of an oil and gas project. It is the foundation for long-term value maximization and is critical for all development and optimization decisions, managing existing assets, ensuring the delivery of remaining reserves and production (Shell EP, 2010).

Petroleum reservoir management is the application of state-of-the-art technology to a known reservoir system within a given management environment. Reservoir management can be said of as that set of operations and judgments, by which a reservoir is identified, measured, produced, developed, watched and evaluated from its discovery through depletion and final abandonment (Wiggins and Startzman, 1990).

Figure 2.1 shows the components of the idea of reservoir management. A reservoir is managed for a particular reason and that reason is accomplished within the management environment using the existing tools and technology (Wiggins and Startzman, 1990).

Fundamentals of Reservoir Management

Reservoir management is not simply the creation of a development plan but rather an all- inclusive, integrated strategy for reservoir exploitation.

Reservoir management requires three basic components; reservoir knowledge, environmental management, and available technology. When these are combined, decisions can be made and a strategy developed for realizing management goals. Without a proper understanding of these components, effective management cannot be accomplished, hence a comprehensive plan for achieving management goals cannot be developed (Wiggins and Startzman, 1990).

Reservoir Knowledge

Knowledge of the system being managed has numerous dimensions. Firstly, knowledge of the system, a petroleum reservoir is an accumulation of hydrocarbons trapped within a single hydrodynamically-connected geological environment. This general knowledge includes an understanding of fluid movement, rock properties, phase behavior and other basic knowledge (Wiggins and Startzman, 1990).

The second dimension of reservoir knowledge provides information about the macroscopic nature of the reservoir. This includes reservoir fluid content, size and variability; geologic province, formation and environment of deposition; the type of rock, depth, pressure and similar general information. The third dimension provides detail on a microscopic level such as reservoir morphology, porosity, fluid saturations, matrix content, capillary pressure relationships, relative permeability data, rock characteristics, and Pressure-VolumeTemperature (PVT) relationships among many others.

The fourth dimension of reservoir knowledge is its history, the events which have taken place during the operation of the reservoir which includes what wells have been drilled, how they were completed, what type of well stimulation has occurred, amounts of fluids produced or injected and any other data that pertains to the reservoir.

 

CHAPTER THREE

  METHODOLOGY

The methodology employed in this study is as outlined below:

  • Data gathering and data Quality Check
  • PVT Analysis for reservoirs
  • Reservoir Modeling at Tank level and Fractional flow matching
  • Production forecasting/predictions
  • Work over 3 reservoirs
  • Economic Analysis of the developmental plan
  • Propose a reservoir development plan based on the

Below are the details of the methodology:

 DATA GATHERING

All available and accessible Geological data (STOIIP, Reservoir radius, Outer/Inner Radius Ratio and Encroachment Angle), Petrophysical data (Porosity, connate water saturation, Rock compressibility, relative Permeability, Initial Reservoir Pressure and thickness, Water Salinity and Aquifer properties), Reservoir data (Reservoir Temperature, GOR, API gravity and Fluid properties), Well Historical Production Data and Productivity Index (PI) were gathered, quality checked and converted to the necessary/required formats. Details of all data can be found in Appendix A1.

CHAPTER FOUR

PRESENTATION OF RESULTS AND DISCUSSION

From the results, the optimal developmental plan in terms of NPV and IRR is obtained. The results also include the volume of oil and gas that can be obtained from each of the plans; details are presented below.

CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

 CONCLUSION

The study was aimed at ensuring efficient reservoir development and management, sustaining hydrocarbon production, maximizing the life of the field, complying with both company and government policies and generally optimizing recoveries.

Based on this research, the following conclusions can be drawn:

  1. About the same volume of oil will be obtained from the two completion
  2. It will take nearly the same number of years to produce the oil with TSM or Smartwell completion.
  3. Smart well completion gives a higher initial flow rate of 6000bopd compared to 4000bopd for TSM.
  1. Smart completion wells cost an average of 26% more than TSM completion
  2. Using Smart wells completion will give a higher NPV and
  3. Base on the NPV and IRR value, a Smart Well developmental plan is preferable for execution of the development plan for the

RECOMMENDATIONS

Based on this research, the following recommendations are suggested:

  1. Further detailed study should be carried out in order to determine the technicalviability of the proposed developmental
  2. Develop 3D Numerical models for the detailed study of the reservoirs with respectto leveraging on the results of MBAL model, in terms of aquifer definition and pressure depletion.

Once the above mentioned recommendations are met, the management can go ahead and implement the reservoir development plan.

REFERENCES

  • Abdus Satter “Reservoir Management Training: An Integrated Approach” Texaco Society for Petroleum Engineers (SPE) Paper 20752, 1990.
  • Abdus Satter, James E. Varnon, and Muu Hoang “Integrated Reservoir Management” Texaco Inc. Society for Petroleum Engineers (SPE) Paper 223501994.
  • A. Lie, B. T. Mallison “Mathematical Models for Oil Reservoir Simulation” Knut- Andreas Lie And Bradley T.Mallison.
  • A. Mian “Project Economics and Decision Analysis Vol I: Probabilistic  Models” Penn Well Corporation2002
  • L. Wiggins and R.A. Startzman “An Approach to Reservoir Management”, Texas A&M U. Society for Petroleum Engineers (SPE) Paper20747
  • L.Wiggins. “An Approach to Reservoir Management”, Proceedings of SPE Annual Technical Conference and Exhibition SPE, 09/1990
  • T Sawabini and Emmanuel O. Egbogah “Reservoir Management Key Performance Indicators” Society for Petroleum Engineers (SPE) Paper38091
  • Shell E&P, “WRM Operational Excellence in Production”, The Hague, TheNetherlands: SIEP, Volume  2010.
  • Tarek Ahmed “Reservoir Engineering Hand Book” Third Edition2006
  • Petroleum Experts User Manual “MBAL Complete Version 50”2010