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Over the last 3 years, Salym Petroleum Development, through ROGTEC, has discussed many innovative ideas and technologies that they have been implemented in their West Salym fields - In this issue of ROGTEC, SPD looks at their Well and Reservoir Management project.

Commercial oil production in Salym Petroleum Development started in November 2005 and has grown rapidly to 150,000 b/d, from some 350 wells that include producing wells, ESP's (Electric Submersible Pumps) and water injectors and supply wells. The Company now has plans for some 1000 wells.

The Well and Reservoir Management (WRM) project aims for a structural and sustainable development of WRM across all SPD license areas to support the continued growth in well stock, whilst accelerating production, increasing reserves additions and containing
operating costs.

The key enablers are the implementation of the Smart Field Foundation Mark 1 (SFF Mk 1) program; the adoption and embedding the Lean methodology in the Company; and of course, the management commitment to the program.

2. SFF Mk 1 Deployment
Project overview and Pilot phase 1
The SFF Mk 1 Project enables the Salym team to have the information, workflows, tools and capabilities to continuously optimise the Salym fields which will be integral to the WRM concept.

The project is split into 3 x main areas:

1. People and capability development.
2. Technology and tools such as Fieldware Production Universe (FW PU), Well Test (FW WT), FW ESP (Electric Submersible Pump), Energy Components, IPSM / IFM, Dual PI, DACA.
3. Integrated workflow/business processes, that cover well testing, well production monitoring, hydrocarbon allocation, production system optimisation and production forecasting.

Pilot phase 1 – Fieldware (FW) suite pack deployment for 2 well pads in West Salym field.
The pilot phase was successfully deployed in December 2008 covering a total of 30 wells on two well pads (K9 and K16).

As soon as the concept was implemented several benefits immediately became clear.

FW ESP

• The remote "Stop/Start" of ESP systems in controlled manner.
• Remote frequencies change set points (optimisation).
• ESP systems "ALARM" real time advisory Exception Based Surveillance (EBS).
• Real time monitoring of ESP performance.
• Ability to change "Trip/Alarm" settings.

For the well testing the following benefits were observed:

FW WT

• Real time test results enabled immediate screening and identification of any deviation from - the wells potential and operating envelopes.
• Well test results could be validated and sent to HCA.
• Transparency of the test units operational signals.
• Optimize testing by difference.
• Identifying and optimizing the purge time requirement for each well.

For the Fieldware Production Universe (FW PU)

• Gave a better overview of well pads topology
• Increased screening of wells in operations as well as their status.
• Increased assessment of the bulk real time production data from the well pads.
• Enabled better analysis of individual well production real time trends and downtime.
• Increased alerts to alarms and communication signals.
• Improved reporting and uploading into HCA.

Challenges and way forward for the SFF Mk 1 project
The SFF Mk 1 pilot will be expanded to cover all SPD producing and injection wells by end 2009. Completing the installation and implementation will be a significant achievement as processes, workflows, SOP's (Standard Operating Procedures) will be deployed in 2009. Staff training and integration of workflows in the "new ways of working" within the Salym environment will be a "must" during and post implementation phase.

3. Reservoir aspects of the WRM project
The Salym fields are still at a very early stage of development, currently producing at 25-30% water-cut, mostly as a result of large transition zones. Patterns are still being established. In this context, the emphasis in Water-Flood Management is just shifting from pressure to sweep/pattern management. Different types of tools are being deployed in support of this optimization effort, their degree of sophistication being driven by the field size and complexity. In 2008, a 3D full field MoReS was built for the small Upper Salym field and was successfully used in the identification of WRM activities (conversions, perforations, stimulations). In contrast, the water-flood in the larger West-Salym field is being managed using a combination of 3D sector models and the Shell Water-Flood OFM. In 2009, SPD will test Russian tools specifically developed for managing West-Siberian Water-Floods. The latter have the benefits of integrating a full field streamline model based on simplified geology with the traditional water-flood diagnosis plots offered by the OFM template – this complies with the SPD philosophy of integrating the best Western Technologies with the best Russian technologies (see ROGTEC Issue 8).



4. WRM Activities
In 2008 SPD has produced 0.33 mln m3 (2.1 MM bbls) more than originally planned due to two factors:

• Higher NFA (No Further Activity) production: 0.19 MM m3 (1.2 MM bbls)
• Increased addition of new oil: 0.14 MM m3m (0.9 MM bbls)

The number of WRM activities carried out by SPD has increased during 2008 considerably when compared to 2007.

In 2008 the following WRM activities were carried out:

Production System Optimization (PSO)
On a weekly basis the production performance of all producers is reviewed, and opportunities identified to optimize the speed of the ESP by changing the frequency of the Variable Speed Drive (VSD). The associated production gains are tracked and for 2008 this resulted in an additional production of 150,646 m3 (0.94 MM bbls) compared to 218,162 m3
(1.37 MM bbls) in 2007

Reduction Locked In Production (LIP)
Various wells are production constrained (and having a Locked In Potential) since they are completed with too small pumps. This is caused due to the uncertainty in the well productivity prediction (and therefore ESP sizing) during initial completion and/or due to increase of well productivity with time (due to pressure increase) as result of water injection. During 2008 in 25 wells the ESP size was increased to reduce the LIP. This has resulted in a production gain of 230,000 m3 (1.45 MM bbls) and a reduction of LIP of some 1600 m3/d gross

Additional perforating / re-perforating
Additional zones and/or existing zones were (re) perforated during workovers in 15 wells. This has resulted in a production gain of 49,500 m3 (0.31 MM bbls).

Water shut offs
In three wells bridge plugs were installed and/or cement squeezes carried out to shut off water producing zones. This has resulted in a production gain of 40,600 m3 (0.26 MM bbls).

Hydraulic fracturing
During 2008 22 wells (9 wells in 2007) have been hydraulically fracced using diesel as frac fluid during initial completion or workover. This has resulted in a production gain of 144,600 m3 (0.90 MM bbls).

Production Inflow during TCP perforating under drawdown
The production inflow performance of the well is being assessed during tubing conveyed perforating by measuring the speed of the fluid level rise of the annulus using Echometers. The data are used to verify the planned pumpsize based from logs. During 2008 (up to 1.11 2008) 44 inflow tests have been carried out. Based on these inflow data it was decided in 16 wells to change the pump size during initial completion. For the remaining 28 wells it was decided to complete the wells with the pump size planned and selected from the logs. Production data from the wells afterwards showed that out of the 44 decisions made onsite 37 were correct and 7 incorrect. In May 2008 a project was started to increase the accuracy of the inflow calculation (i.e. use automatic echometer instead of manual one, change in procedures and improving inflow calculation). Since that time (up to 1.11.08) only 2 incorrect pump size decisions during initial completion have been made.

The 16 pump size changes based on the inflow tests resulted an in increase in initial production potential of 666 m3/d (in 8 wells pump size was increased) and in a cost saving of 0.8 mln (in 8 wells pump size was reduced) by avoiding an early future workover.

Development of Lean capability
SPD’s Lean journey started in April 2008 with the Leadership Intervention workshop, delivered by the WRM Central team. This was followed by WRM and Lean awareness sessions, which have now been given to 450 of SPD's 800 staff. In addition, 30 staff have been trained to Green belt level, which will increase to 60 by the end of 2009.

Initial focus was on oil production; the value stream map was created from which approximately 80 improvement ideas ensued, which were then ranked and prioritized for implementation. Mapping of the Supply change management process and Management of water have also been started, with a total of 10 Lean projects currently ongoing. Results have varied between improving processes, to direct oil gains (described earlier in the WRM activities section) and there are some clear learnings for us to date: go to gemba is essential (work on site with the people who actually do the work!); the devil is in the detail; don't under-estimate the effort involved in actually executing the improvements and most importantly, making the improvements sustainable.

In November, we visited Aera, and saw for ourselves a Lean company in operation, which has proved an inspiration. We have seen what can be done and one of the success factors within Aera is an Enterprise wide Data Management solution. The challenge is to structure the growing enthusiasm within SPD and become the next Aera.

So the WRM program is another big step in SPD's vision to streamline and maximize the Salym Fields and to establish and cement SPD as a technical leader within the Russian oil sector.

Labels: electric submersible pumps, ESP, oil gas, Russia, Salym Petroleum Development, SPD, well production, well reservoir management

posted by The Rogtec Team @ 16:17 

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