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Reservoir characterization is a critical factor in reservoir management, optimizing production, and enhancing recovery. Lack of understanding of reservoir characteristics is one of the leading causes of mistakes in constructing the static reservoir model. Understanding the three-dimensional variability of any reservoir static model requires an unde...
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Marginal fields’ reserves development is attached to the significant financial risks, which are catalyzed by time from discovery to an effect from investment. An option to decrease such risks is using the early production facilities (EPF), which allows producing the hydrocarbons in a quicker basis and monetizing the asset in a shortest timeline, compared to temporary facilities. EPF leads to accelerated operational decision-making that contributes to early payback with minimal financial outlay. Three modifications of early production facilities were used in this paper: three stage separators with relevant storage tanks and compressors. Among the three design configurations, the two-stage separation model is considered the best scenario from the economic and the technical perspective. One-stage separation was not suitable for our fluids condition due to the high pressure drop from the wellhead to the separator and remaining gas dissolved in oil after separation, which indicated that in order to increase the recovery factor and efficiency of the separation, we need to use more stages to get a purer product. The three-stage separation demonstrated almost the same performance (extra two barrels of oil) as the two-stage option: desired quality, state of the fluids and efficiency was obtained; an extra investment would not be profitable. When the number of separators increased the efficiency and RF of the separation increased. EPF and permanent facilities were compared utilizing economic evaluation and risk analysis. It was found that EPF showed more attractive profitability indicators: NPV (SP) 132.81 $MM, IRR (SP) 42.93%, and NPV (FP) 513.24 $MM. The Permanent facilities had a significant negative effect on the economic criteria. Selection of the EPF will lead to early profit with less risk, reducing the time to start production due to parallel design, fabrication and site preparation.
It was observed that numerous simplifications are still used in the oil and gas industry when making decisions, which can lead to erroneous decisions in complex design situations. The objective of the study is to enhance the decision-making process for one of the key design factors for water-flooding projects, namely pattern size, by using a simulation-economic-simulation approach. With the help of this approach, the best injection pattern size is chosen for use in the water-flooding design. Four reservoir simulation models of various water-flooding pattern sizes were updated with the wells, and reservoir characterization was run to obtain the production profile. Second, four economic models based on the production profiles from the dynamic models have been built to assist in decision-making for the four water-flooding pattern sizes. Thirdly, the economic model has been combined with a probabilistic simulation model based on an appropriate representation of all uncertain economic and development cost data for the four models. The optimal pattern size is then chosen using quantitative and objective analysis of all the water-flooding models to make decisions based on the economic indicators. The results from the four economic decision-making models showed that the method is suitable for use in a complex application, such as designing a water-flooding project with various pattern sizes. The Government (first party, FP) NPV and International Company (second party, SP) NPV and IRR for pattern sizes 160 acre, 260 acre, 360 acre, and 460 acres are estimated to be 4364 $MM, 109 $MM, 17%, and 3993 $MM, 400 $MM, 23.89, and 3534 $MM, 444 $MM, 26.34%, and 2910 $MM, 350 $MM, 24.89, respectively. The economic models of decision-making output are shown in Table 1. The best design of the pattern size has been selected based on the intersection point between the two curves of the NPV that gave the best profit for both parties. This work describes a new methodology for an integrated reservoir simulation, economic decision-making, and stochastic simulation model for achieving the optimum design. The proposed methodology, simulation-economic-simulation, is efficient and compatible with real-time operations, even in complex Downloaded from http://onepetro.org/SPEOGWA/proceedings-pdf/24OPES/2-24OPES/D021S018R006/3394094/spe-218487-ms.pdf by Saad Balhasan on 04 May 2024 2 SPE-218487-MS cases where the design is restrictive. This paper will learn how simulation insights help companies optimize their designs and systems, identify new innovations, and drive sustainable operations.
