Production Enhancement Partnerships - Successful Business Arrangements
- Larry Coble (Halliburton Energy Services) | Kenneth Weitzel (Halliburton Energy Services) | Larry Attai (Halliburton Energy Services) | Kent Gray (Halliburton Energy Services)
- Document ID
- Society of Petroleum Engineers
- Journal of Petroleum Technology
- Publication Date
- July 1996
- Document Type
- Journal Paper
- 634 - 639
- 1996. Society of Petroleum Engineers
- 3.2.5 Produced Sand / Solids Management and Control, 1.8 Formation Damage, 5.4.1 Waterflooding, 7.3.3 Project Management, 1.2.1 Wellbore integrity, 2.2.2 Perforating, 2.4.5 Gravel pack design & evaluation, 5.1 Reservoir Characterisation, 4.3.3 Aspaltenes, 4.2.3 Materials and Corrosion, 1.6 Drilling Operations, 5.2.1 Phase Behavior and PVT Measurements, 4.3.4 Scale, 3.2.3 Hydraulic Fracturing Design, Implementation and Optimisation, 4.6 Natural Gas, 3 Production and Well Operations, 4.1.2 Separation and Treating, 2.4.3 Sand/Solids Control
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Production enhancement projects are creating changes in business relationships between oil & gas and service companies. The most successful projects are building partnerships. Service companies are being asked to share the risk while supplying services to enhance well performance. Risk sharing creates common project objectives and requires the service company's involvement in initial project planning, job design, and reservoir understanding. Service work compensation is based on well or field performance improvement as a result of the treatment(s).
This paper presents an integrated approach to the selection and prioritization of well candidates for production enhancement jobs or treatments. Special emphasis is placed on reservoir understanding using field reviews and/or extensive reservoir description studies to provide the essential information for well candidate selection and the best return on investment. Processes are illustrated and discussion gives the data requirements and techniques used to select and prioritize well candidates. Field examples demonstrate the techniques, critical factors, and appropriate software used by geoscience and field operations teams to maximize benefits from production enhancement projects.
The need for a better business arrangement with service companies has been identified by many operating companies. Partnerships evolved to align interests, utilize the same performance measurements, create an environment for teamwork, ensure use of appropriate technology and add value by increasing the project profitability.
The bidding process is being replaced with partnerships due to the realization that superior benefits can be obtained. In the typical 'low bid' scheme, the operator planned the project, designed the job and distributed the job specifications to several suppliers to bid the services and materials. In many cases, the operating company would select the vendor supplying the work based on the lowest price. This type of arrangement gave little incentive to the service company to enhance production. If the job went as designed, i.e., the service company was on time, brought the necessary materials, and performed the job within the specifications, the service company considered the job a success. However, the job may not have achieved the expected production increase for the operating company. Project profitability and continuous quality improvement can be compromised in this scenario.
The alliance/partnering business arrangement is an excellent vehicle to achieve continuous improvement and apply 'best practices' techniques.
|File Size||713 KB||Number of Pages||6|