Hydrocarbon Exploration & Production

457 Pages·2008·9.13 MB·English

by  Frank Jahn

V OLUME FIFTY FIVE
D P S
EVELOPMENTS IN ETROLEUM CIENCE
HYDROCARBON
EXPLORATION AND
PRODUCTION
2 E
ND DITION
DEVELOPMENTS IN PETROLEUM SCIENCE 55
Volumes 1-7,9-18, 19b, 20-29,31, 34,35, 37-39 areout ofprint.
8 Fundamentals ofReservoir Engineering
19a Surface Operations inPetroleum Production, I
30 CarbonateReservoirCharacterization:AGeologic-EngineeringAnalysis,PartI
32 FluidMechanicsforPetroleumEngineers
33 PetroleumRelatedRockMechanics
36 ThePracticeofReservoirEngineering(RevisedEdition)
40a AsphaltenesandAsphalts,I
40b AsphaltenesandAsphalts,II
41 SubsidenceduetoFluidWithdrawal
42 CasingDesign–TheoryandPractice
43 TracersintheOilField
44 CarbonateReservoirCharacterization:AGeologic-EngineeringAnalysis,PartII
45 ThermalModelingofPetroleumGeneration:TheoryandApplications
46 HydrocarbonExplorationandProduction
47 PVTandPhaseBehaviourofPetroleumReservoirFluids
48 AppliedGeothermicsforPetroleumEngineers
49 IntegratedFlowModeling
50 OriginandPredictionofAbnormalFormationPressures
51 SoftComputingandIntelligentDataAnalysisinOilExploration
52 GeologyandGeochemistryofOilandGas
53 PetroleumRelatedRockMechanics
55 HydrocarbonExplorationandProduction
V OLUME FIFTY FIVE
D P S
EVELOPMENTS IN ETROLEUM CIENCE
HYDROCARBON
EXPLORATION AND
PRODUCTION
2 E
ND DITION
By
Frank Jahn, Mark Cook and Mark Graham
TRACS International Consultancy Ltd.
Aberdeen, UK
Amsterdam (cid:2)Boston (cid:2)Heidelberg (cid:2) London(cid:2) NewYork (cid:2)Oxford
Paris (cid:2) San Diego (cid:2)San Francisco (cid:2) Singapore(cid:2) Sydney (cid:2) Tokyo
Elsevier
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Firstedition1998
Secondedition2008
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C
ONTENTS
PrincipalAuthors ix
Introduction: Aboutthis Book xi
1. The Field Life Cycle 1
1.1. Gaining AccessPhase 1
1.2. Exploration Phase 2
1.3. AppraisalPhase 3
1.4. Development Planning 4
1.5. Production Phase 5
1.6. Decommissioning 6
2. Petroleum Agreements and Bidding 9
2.1. The Invitation toBid 9
2.2. MotivationsandForm of Bid 12
2.3. Block Award 13
2.4. Fiscal System 14
2.5. Farm-inandFarm-out 14
2.6. UnitisationandEquity Determination 16
3. Exploration 19
3.1. Hydrocarbon Accumulations 19
3.2. Exploration MethodsandTechniques 24
4. Drilling Engineering 47
4.1. Well Planning 47
4.2. RigTypes andRigSelection 48
4.3. Drilling Systems andEquipment 52
4.4. SitePreparation 60
4.5. Drilling Techniques 62
4.6. CasingandCementing 72
4.7. Drilling Problems 76
4.8. CostsandContracts 79
v
vi Contents
5. Safety and the Environment 83
5.1. Safety Culture 83
5.2. SafetyManagement Systems 86
5.3. Environment 88
5.4. Current EnvironmentalConcerns 91
6. Reservoir Description 95
6.1. Reservoir Geology 95
6.2. ReservoirFluids 108
6.3. Data Gathering 141
6.4. DataInterpretation 152
7. Volumetric Estimation 173
7.1. DeterministicMethods 173
7.2. Expressing Uncertainty 177
8. Field Appraisal 191
8.1. TheRole of AppraisalintheField Life Cycle 191
8.2. IdentifyingandQuantifying Sources ofUncertainty 192
8.3. AppraisalTools 194
8.4. ExpressingReduction ofUncertainty 195
8.5. Cost-Benefit Calculationsfor Appraisal 196
8.6. PracticalAspects of Appraisal 199
9. Reservoir Dynamic Behaviour 201
9.1. The DrivingForcefor Production 201
9.2. ReservoirDrive Mechanisms 203
9.3. GasReservoirs 210
9.4. Fluid Displacement intheReservoir 217
9.5. ReservoirSimulation 222
9.6. Estimating theRecovery Factor 223
9.7. Estimating theProduction Profile 224
9.8. Enhanced OilRecovery 226
10. Well Dynamic Behaviour 229
10.1. Estimating theNumber ofDevelopment Wells 229
10.2. Fluid Flow NeartheWellbore 231
10.3. Horizontal Wells 234
10.4. Production Testing andBottomHole PressureTesting 237
10.5. TubingPerformance 241
10.6. Well Completions 244
Contents vii
10.7. Completion TechnologyandIntelligent Wells 249
10.8. ArtificialLift 254
10.9. Subsea vs. PlatformTrees 260
11. Surface Facilities 265
11.1. Oil andGasProcessing 266
11.2. Facilities 291
12. Production Operations and Maintenance 311
12.1. OperatingandMaintenance Objectives 312
12.2. Production Operations Input to theFDP 312
12.3. Maintenance Engineering Inputto theFDP 319
13. Project and Contract Management 325
13.1. Phasing andOrganisation 325
13.2. Planning andControl 329
13.3. CostEstimation andBudgets 332
13.4. Reasons for Contracting 334
13.5. Types ofContract 335
14. Petroleum Economics 337
14.1. BasicPrinciples ofDevelopment Economics 337
14.2. Constructing a Project Cashflow 339
14.3. Calculating a Discounted Cashflow 351
14.4. Economic Indicators 356
14.5. ProjectScreening andRanking 357
14.6. Sensitivity Analysis 359
14.7. Incorporating Inflation 360
14.8. ExplorationEconomics 362
15. Risk Analysis 365
15.1. RiskDefinition andUnit ofMeasure 365
15.2. Summaryof RiskAnalysis TechniquesinExploration andAppraisal 366
15.3. RiskAnalysis for Major CapitalInvestments inProjects 369
15.4. Managing CommercialRisk 383
16. Managing the Producing Field 385
16.1. Managing theSubsurface 386
16.2. Managing theSurface Facilities 394
16.3. Managing theExternal Factors 399
16.4. Managing theInternal Factors 401
viii Contents
17. Managing Decline 405
17.1. Infill Drilling 405
17.2. Workover Activity 407
17.3. Enhanced OilRecovery 410
17.4. Production De-Bottlenecking 412
17.5. Incremental Development 415
18. Decommissioning 419
18.1. Legislation 419
18.2. Economic Lifetime 420
18.3. Decommissioning Funding 421
18.4. Decommissioning Methods 422
References and Bibliography 427
Terms and Abbreviations 429
Subject Index 433
P A
RINCIPAL UTHORS
FrankJahnhasworkedasaPetroleumGeologistinBrunei,Thailand,theNetherlands,theUK
and Australia. After 11 years with a multinational oil company he co-founded TRACS
International in 1992. He has designed and teaches multidisciplinary training courses related
to oil and gas field exploration and development worldwide, particularly graduate
development programmes. He is now based in Perth, Australia where he works as a
petroleum consultant.
MarkCookjoinedtheoilindustryin1981asareservoirengineer,andworkedfor11yearsin
a multinational oil company in the Netherlands, Oman, Tanzania and the UK. In 1992 he
co-founded TRACS International, where he is currently CEO, based in Scotland. His
specifictechnicalinterestslieinpetroleumengineering,riskanalysisandeconomics,andhe
remains involved in training course development and delivery.
Mark Graham has 29 years of oil industryexperience, working initiallyas a wireline logging
engineer with Schlumberger in the Middle East, followed by more than 10 years with a
multinationaloilcompanyinbothoperationsandpetroleumengineeringpositionsintheFar
EastandNorthSea.Heco-foundedTRACSInternational,whereheisaDirector,currently
responsibleforgeneralbusinessdevelopmentinadditiontoworkingasapetroleumengineer,
economist and project manager.
We thank Fiona Swapp for support in the graphics and publishing of this book, and for technical
updates provided by TRACS International team members, particularly Liz Chellingsworth, Bjorn
Smidt-Olsen, Jonathan Bellarby and Jenny Garnham.
TRACS International Training Ltd., and TRACS International Consultancy Ltd., can be
contacted through:-
Tel: [phone]
Fax: [phone]
email: [email protected]
website: http://www.tracs.com
Address: Falcon House,
Union Grove Lane,
Aberdeen, AB10 6XU,
United Kingdom
ix