Defining The Optimal Development Strategy to Maximize Recovery and Production Rate from an Integrated Offshore Water-Flood Project
- Hajara Kabeer Abdulfatah (Department of Petroleum and Gas Engineering, Nile University of Nigeria)
- Document ID
- Society of Petroleum Engineers
- SPE Nigeria Annual International Conference and Exhibition, 5-7 August, Lagos, Nigeria
- Publication Date
- Document Type
- Conference Paper
- 2019. Society of Petroleum Engineers
- 21 in the last 30 days
- 21 since 2007
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Globally, oil consumption is predicted to increase in the near future, hence the oil industry is confronted with the issue of increasing its oil production and reducing production costs to meet future demands. Arguably, this can be achieved by the application of various production optimization techniques. The ultimate goal of virtually all effort spent on understanding a petroleum field is to devise an optimal strategy to develop, manage, and operate the field. In the oil and gas industry, operators often draw up a Reservoir development plan (RDP) that may provide the best technical solution and roadmap throughout the development stage of a reservoir. However, before production can begin, evaluating multiple development options for a reservoir and selecting the best option to aid production optimization is necessary.
Therefore, a reservoir development plan studies that provides the necessary guidance and information for establishing whether or not a project is economically viable considering all possible development project options, risks and uncertainties in order to define the most optimal development concept that will increase oil production and reduce production costs is important. But this has been a challenge in the oil and gas industry especially during times of price volatility.
An extensive literation review was carried out on production optimization in a reservoir development plan RDP, to gain a comprehensive understanding of the process. A stochastic multi-tank reservoir model was created on MBAL consisting of various producer and water injection wells (P+WI). Sensitivity analysis was carried out on Seven development scenarios with a view to examine effect of maintaining reservoir pressure, sustaining well productivity and injectivity, optimize well counts and improving well delivery- timing, cost and well performance. A generic production sharing contract (PSC) economic model was created for the project considering economic indicators such as Net present value NPV, Internal rate of return (IRR), Incremental project cashflow, Unit technical cost (UTC), Unit Development cost (UDC) and Breakeven price BEP. Also, the capital expenditure CAPEX of the project which include both wells, manifolds, Facilities costs and other costs such as operation expenditure OPEX, abandonment expenditure ABEX etc are considered with a total breakdown allocated to each inclusive of duty and value added tax VAT.
Results from the scenarios were assessed based on the production philosophy of producing above bubble point via water injection with some aquifer support where available in the multi-tank model. The development scenarios were based on water-flooding by drilling producer/injectors well pairs and using only producer wells where there would be significant aquifer support. The optimal development strategy was selected and the project provided an opportunity to develop an additional 396MMbbls of recoverable oil from 32 new wells (P+WI).
|File Size||1 MB||Number of Pages||18|
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