Leading Integrated Reservoir Studies: Practical Advice

1. Presentation for SPE London Meeting panel discussion on ‘Virtual Teams’ Leading Integrated Reservoir Studies: Practical Advice John H Martin John H Martin Associates Ltd RESERVOIR DEVELOPMENT CONSULTANTS click to advance presentation

2. ‘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

3. Integrated Reservoir Study • Requires significant effort • Addresses a problem associated with a petroleum reservoir • Up to several months/years • Involves personnel from 2+ technical disciplines • full-field reservoir simulation • updating STOIIP • planning a horizontal well • preparing for an equity • selecting core plugs for SCAL

4. 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………..

5. transient pressure tests RCAL and SCAL Permeability Model perforation data flowmeters depositional environment (intrawell) geological model (interwell) …….and often cut across functional and/or organisational lines well log response

6. Project B Flatter management structures for project-based organisations Project A Project A Project E Coordination Coordination ____Control - - - - Communication ____Control - - - - Communication Project C Project C Project D Project D

7. 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

8. 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?

9. Objectives of Integrated Reservoir Studies • Need to be specific and detailed • Define ALL objectives • Consider value of additional objectives • Prioritise • Ensure that objectives are appropriate

10. Work anticipated to fall within the remit of the project…. Or which will fall outside its remit Scope: also a key element of the project model SCOPE Project Quality Time Cost

11. Reservoir Management Study • 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 • 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

12. Identify Activities ESTABLISH OBJECTIVES PLAN • 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

13. Brainstorming: by 'planning' team ZONE RESERVOIR EVALUATE CORES • 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 CALIBRATE WIRELINE LOGS EVALUATE POROPERM MAKE ISOCHORE MAPS ANALYSE MIN & PET SAMPLE CORES CORRELATE WELLS DEPTH MATCH AGAINST LOGS DETAILS FOR LATER USE Point-count thin sections Analyse by XRD Prepare thin sections

14. Hints on identifying activities ZONE RESERVOIR EVALUATE CORES • 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 CALIBRATE WIRELINE LOGS EVALUATE POROPERM MAKE ISOCHORE MAPS ANALYSE MIN & PET SAMPLE CORES CORRELATE WELLS DEPTH MATCH AGAINST LOGS DETAILS FOR LATER USE Point-count thin sections Analyse by XRD Prepare thin sections

15. Plan:‘a graphical representation of work to be carried out - a network Location & ordering of activities indicates precedence only • 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 no “looping”

16. Important Events Activity 2 Burst Activity 1 Activity 3 Activity A Merge Activity C Activity B Helpful in determining Milestones ‘Nesting’ Networks

17. Constructing precedence diagrams

18. 1. ESTABLISH OBJECTIVES 2. PLAN • Define resource availability • Identify critical path • Review, revise and agree project schedule SCHEDULE

19. 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’

20. Milestone Plan • Measuring points within project • Also decision points Activities Milestones End Start Result path

21. 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 a Virtual Team

22. 1. Monitor progress against plan ESTABLISH OBJECTIVES 2. PLAN • Precedence diagram • Gantt chart • Relatively straightforward, but who should be responsible? 3. SCHEDULE CONTROL

23. 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?

24. Traditional methods not suited Timesheeting may not be sufficient actual spend Low value assigned to WIP Cost £K high value assigned to WIP Achievement £K The ‘S’-curve Monitoring against cost Budget total Planned spend forecast • Simple cost vs. achievement method works well

25. 1. ESTABLISH Loss of knowledge during Field Development OBJECTIVES 2. PLAN • Technical reporting • collection of viewgraphs rarely enough! • Project templates 3. Time SCHEDULE 4. CONTROL CAPTURE LESSONS

26. ‘Traditional’ Projects Integrated Reservoir Studies vs.

27. 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’

28. Greater uncertainty as to approaches to be taken? Suggestions: • identify key uncertainties explicitly in precedence diagrams • yes/no • approach #1 or approach #2 • ‘define approach’ • plan and schedule critical alternatives

29. Uncertain activity durations • data integration • history matching • development options + geological uncertainty Approach: • where uncertainty will have significant impact on overall schedule, make three estimates and assess effect

30. Greater potential for ‘recycling’ back to an earlier activity Approach: • identify events that could yield new data • include relevant activities in network diagram as reminder to stay alert • new data from field • information from other fields in basin • improvements in technology

31. Magnitude of expenditure much less • Need for full-time Project Management staff difficult to justify Approach: • train personnel in PM techniques • give ‘lead’ in planning to committed person • use part-time Project Planner • initial planning • periodic updates

32. No formal quality control programmes Approach: • avoid need for ‘shortcuts’ at end of project • create basis for quality checks through detailed planning & documentation • conduct external audits at milestones

33. Geological 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

34. Strategies for reservoir engineers • Give geologist specific guidelines • Ensure that assumptions are reasonable • History matching should be collaborative • Revisit geological model prior to acting on recommendations

35. Virtual ‘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

36. 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

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

38. A generic project model

39. 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’