A Lean Sigma Approach to Well Stimulation on Barrow Island, Australia
- Daniel I. O'Reilly (Chevron Australia and University of Adelaide) | Brad S. Hopcroft (Chevron Australia) | Kate A. Nelligan (Chevron Australia) | Guan K. Ng (Chevron Australia) | Bree H. Goff (Chevron Australia) | Manouchehr Haghighi (University of Adelaide)
- Document ID
- Society of Petroleum Engineers
- SPE Production & Operations
- Publication Date
- May 2018
- Document Type
- Journal Paper
- 393 - 408
- 2018.Society of Petroleum Engineers
- Reservoir stimulation, Lean Manufacturing, Six Sigma
- 4 in the last 30 days
- 202 since 2007
- Show more detail
- View rights & permissions
|SPE Member Price:||USD 12.00|
|SPE Non-Member Price:||USD 35.00|
Barrow Island (BWI), 56 km from the coast of Western Australia (WA), is home to several mature reservoirs that have produced oil since 1965. The main reservoir is the Windalia Sandstone, and it has been waterflooded since 1967, whereas all the other reservoirs are under primary depletion. Because of the maturity of the asset, it is economically critical to continue to maximize oil-production rates from the 430 online, artificially lifted wells. It is not an easy task to rank well-stimulation opportunities and streamline their execution. To this end, the BWI Subsurface Team applied the Lean Sigma processes to identify opportunities, increase efficiency, and reduce waste relating to well stimulation and well-performance improvement.
The Lean Sigma methodology is a combination of Lean Production and Six Sigma, which are methods used to minimize waste and reduce variability, respectively. The methods are used globally in many industries, especially those involved in manufacturing. In this asset, we applied the processes specifically to well-performance improvement through stimulation and other means. The team broadly focused on categorizing opportunities in both production and injection wells and ranking them—specifically, descaling wells, matrix acidizing, sucker-rod optimization, reperforating, and proactive workovers. The process for performing each type of job was mapped, and bottlenecks in each process were isolated.
Upon entering the “control” phase, several opportunities had been identified and put in place. Substantial improvements were made to the procurement, logistics, and storage of hydrochloric acid (HCl) and associated additives, enabling quicker execution of stimulation work. A new program was also developed to stimulate wells that had recently failed and were already awaiting workover (AWO), which reduced costs. A database containing the stimulation opportunities available at each individual well assisted with this process. The project resulted in the stimulation of several wells in the asset, with sizable oil-rate increases in each.
This case study will extend the information available within the oil-industry literature regarding the application of Lean Sigma to producing assets. It will assist other operators when evaluating well-stimulation opportunities in their fields. Technical information will be shared regarding feasibility studies (laboratory-compatibility work and well-transient-testing results) for acid stimulation and steps that can be taken to streamline the execution of such work. Some insights will also be shared regarding the most-efficient manner to plan rig work regarding stimulation workovers.
|File Size||1 MB||Number of Pages||16|
Al Adwani, A. E., Al-Zuwayer, H., and Kapavarapu, V. M. R. 2011. Six Sigma Approach to Meet Gas Dehydration Unit Optimization. Presented at the SPE Asia Pacific Oil and Gas Conference and Exhibition, Jakarta, 20–22 September SPE-147042-MS. https://doi.org/10.2118/147042-MS.
Allan, M. E., Reese, D. W., and Gold, D. K. 2014. Application of Toyota’s Principles and Lean Processes to Reservoir Management: More Tools to Overload the Toolbox or a Step Change in Our Business? SPE Econ & Mgmt 6 (2): 67–87. SPE-165331-PA. https://doi.org/10.2118/165331-PA.
Basbar, A. E., Al Kharusi, A., and Al Kindi, A. 2016. Reducing NPT of Rigs Operation through Competency Improvement: A Lean Manufacturing Approach. Presented at the SPE Bergen One Day Seminar, Bergen, Norway, April 20. SPE-180066-MS. https://doi.org/10.2118/180066-MS.
Buell, R. S. 2006. Operating With Integrity and Excellence in the Oilfield. Paper SPE-108815-DL presented as a Distinguished Lecture during the 2005–2006 season.
Buell, R. S. and Turnipseed, S. P. 2004. Application of Lean Six Sigma in Oilfield Operations. SPE Prod & Fac 19 (4): 201–208. SPE-84434-PA. https://doi.org/10.2118/84434-PA.
Casey, J. N. and Konecki, N. C. 1967. Natural Gas—A Review of its Occurrence and Potential in Australia and Papua. Presented at the 7th World Petroleum Congress.
Charles, S. R., Deutman, R., and Gold, D. K. 2012. Implementing Lean Manufacturing Principles in New Well Construction. Presented at the SPE Heavy Oil Conference Canada, Calgary, 12–14 June. SPE-157907-MS. https://doi.org/10.2118/157907-MS.
Chessa, C., Magnani, F., and De Fiorido, F. 2013. Value Creation Through an Integrated Approach to Performance Improvement. Presented at the SPE Annual Technical Conference and Exhibition, New Orleans, 30 September–2 October. SPE-166349-MS. https://doi.org/10.2118/166349-MS.
Economides, M. J. and Nolte, K. G. 2000. Reservoir Stimulation, third edition. New York City: Wiley.
Ghany, W. A. 2010. 5S and Its Effect on HSE Performance. Presented at the Middle East Health, Safety, Security, and Environment Conference and Exhibition, Manama, Bahrain, 4–6 October. SPE-136528-MS. https://doi.org/10.2118/136528-MS.
Hejl, K. A., Madding, A. M., Morea, M. et al. 2007. Extreme Multistage Fracturing Improves Vertical Coverage and Well Performance in the Lost Hills Field. SPE Drill & Compl 22 (4): 326–333. SPE-101840-PA. https://doi.org/10.2118/101840-PA.
Itua, O. J. and Shamuganathan, G. 2015. Lean Methods Application to Frontend Petroleum Engineering Project. Presented at the SPE Nigeria Annual International Conference and Exhibition, Lagos, 4–6 August SPE-178337-MS. https://doi.org/10.2118/178337-MS.
Jati, N., Rahman, F., Kurniawan, H. et al. 2015. Design of Experiment and Statistical Approach to Optimize New Zone Behind Pipe Opportunity: North Roger Block Case Study. Presented at the SPE/IATMI Asia Pacific Oil & Gas Conference and Exhibition, Bali, Indonesia, 20–22 October. SPE-176205-MS. https://doi.org/10.2118/176205-MS.
Juranek, T. A., Seeburger, D. T., Tolman, R. C. et al. 2010. Evolution of Mesaverde stimEvolution of Mesaverde Stimulations in the Piceance Basin: A Case History of the Application of Lean Six Sigma Tools. Presented at the SPE Unconventional Gas Conference, Pittsburgh, Pennsylvania, 23–25 February. SPE-131731-MS. https://doi.org/10.2118/131731-MS.
Mantecon, J. C. 1993. Gas-Lift Optimisation on Barrow Island, Western Australia. Presented at the SPE Asia Pacific Oil and Gas Conference, Singapore, 8–10 February. SPE-25344-MS. https://doi.org/10.2118/25344-MS.
McCall, J., Smart, P., and McNeil, D. 2009. Application of Continuous Improvement Methods to the Petroleum Upstream Business. Presented at the SPE Annual Technical Conference and Exhibition, New Orleans, 4–7 October. SPE-125252-MS. https://doi.org/10.2118/125252-MS.
McTavish, R. A. 1965. Barrow No. 1 Well Completion Report. Internal Report (Available from WA DMP). WAPET, Perth, Western Australia.
Mustapha, A., Umeh, N., and Adepoju, A. 2015. Deploying Continuous Improvement Methodologies to Improve Efficiency: A Way of Responding to Emerging Industry Challenges. Presented at the SPE Nigeria Annual International Conference and Exhibition, Lagos, 4–6 August. SPE-178387-MS. https://doi.org/10.2118/178387-MS.
O’Reilly, D. I., Hunt, A. J., Sze, E. S. et al. 2016a. Increasing Water Injection Efficiency in the Mature Windalia Oil Field, NW Australia, Through Improved Reservoir Surveillance and Operations. Presented at the Asia Pacific Oil & Gas Conference and Exhibition, Perth, Australia, 25–27 October. SPE-182339-MS. https://doi.org/10.2118/182339-MS.
O’Reilly, D. I., Haghighi, M., Flett, M. A. et al. 2016b. Pressure and Rate Transient Analysis of Artificially Lifted Drawdown Tests Using Cyclic Pump Off Controllers. J. Pet. Sci. Eng. 139 (March): 240–253. https://doi.org/10.1016/j.petrol.2016.01.030.
Okshiev, A. and Alteneder, W. 2014. Process Safety Information Management. Presented at the SPE Annual Caspian Technical Conference and Exhibition, Astana, Kazakhstan, 12–14 November. SPE-172259-MS. https://doi.org/10.2118/172259-MS.
Patty, R. and Denton, M. A. 2005. Improve Facility Project Delivery With Methods for Manufacturing Excellence. Presented at the SPE Annual Technical Conference and Exhibition, Dallas, 9–12 October. SPE-96241-MS. https://doi.org/10.2118/96241-MS.
Popa, A. and Cassidy, S. 2012a. i-field Programs Enable Operational Excellence in a Challenging Environment—Pushing the Limits of Large Data Transfer for Real-Time Monitoring and Surveillance Operations in San Joaquin Valley. SPE Econ & Mgmt 4 (2): 83–89. SPE-143949-PA. https://doi.org/10.2118/143949-PA.
Popa, A. S. and Cassidy, S. D. 2012b. Artificial Intelligence for Heavy Oil Assets: The Evolution of Solutions and Organization Capability. Presented at the SPE Annual Technical Conference and Exhibition, San Antonio, Texas, 8–10 October. SPE-159504-MS. https://doi.org/10.2118/159504-MS.
Popa, A., Horner, K., Cassidy, S. et al. 2012. Implementing i-field-Integrated Solutions for Reservoir Management: A San Joaquin Valley Case Study. SPE Econ & Mgmt 4 (1): 58–65. SPE-143950-PA. https://doi.org/10.2118/143950-PA.
Popa, A., Ramos, R., Cover, A. B. et al. 2005. Integration of Artificial Intelligence and Lean Sigma for Large Field Production Optimization: Application to Kern River Field. Presented at the SPE Annual Technical Conference and Exhibition, Dallas, 9–12 October. SPE-97247-MS. https://doi.org/10.2118/97247-MS.
Popa, A. S., Leon, H., Medel, J. et al. 2015. Data-Driven Analytics for Production Impact Assessment during Unplanned Facility System Events. Presented at the SPE Western Regional Meeting, Garden Grove, California, 27–30 April. SPE-173993-MS. https://doi.org/10.2118/173993-MS.
Takacs, G. 2003. Sucker Rod Pumping Manual. Tulsa: PennWell Books.
Vargas, C. M. and Scott, H. 2015. Continuous Improvement Strategy to Stimulate Sustainability and Enhance Environmental Management. Presented at the Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, 9–12 November. SPE-177536-MS. https://doi.org/10.2118/177536-MS.