The Northern Oil Directorate of PDO (OND) manages some of the most important assets in the country, contributing just a little under 50% of Oman's daily production. Over the last 5 years, the production has seen a rapid decline. The challenge of arresting this decline to maximize the reserves is being met by a significant increase in the level of well intervention following re-emphasis on four major areas: Proper well surveillance, Acceleration of reserves by Optimization activities, Maintenance of NFA by restoration activities and Conservation of reservoir energy by management of water-floods. Major well services challenges are in the areas of well and reservoir surveillance, failed ESP replacements, well integrity (casing, tubing and packer) repairs, additional perforations, water shut off, gas lift optimization and multi lateral re-entry. Well Services expenditure has more than doubled in 4 years, with over 5000 entries, (utilizing hoists, coiled tubing, Wireline, pumping units) expected in 2004. Management of this rapidly increasing level of activity was imperative to realize value for the asset from the increased expenditure.
This paper discusses the process applied to management of Well Services activities with a refocus on lowering intervention costs, increasing net oil rewards and reducing deferment, building on the principle that every action costs money, and should therefore result in some oil in the tank. It takes us through the approach of integrated analysis of information from an increased level of surveillance activities to generating a more robust portfolio of intervention candidates. It highlights the improvements made on candidate selection, ranking, activity proposal generation, resource allocation, activity execution, performance management, KPI tracking and after action reviews. It concludes with a description of the feedback loop being embedded to ensure continuous improvement, the benefits realized so far and what more needs to be done.