THE IMPACT OF REAL TIME INFORMATION ON PRODUCTION AND RESERVES

1. NOT AN OFFICIAL UNCTAD RECORD THE IMPACT OF REAL TIME INFORMATION ON PRODUCTION AND RESERVES Gabriel Kuiatse Marketing Manager Schlumberger West Africa

2. Defining the Reservoir WesternGeco Reserve Definition (SPE & WPC) “Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations” In general, only about 25% of oil in place is produced!

3. Elements Affecting Reserves • Reservoir characteristics • Oil prices • Cost • Contracts (PSA) • Corporate procedures, technology used. • Government regulations • . Time

4. $ Investment time Production time The time dimension • NPV (Net Present Value) = Cash(t)/(1+ rate)t • Cash={Oil/Gas x Unit Price – (CAPEX+OPEX)} • Increase NPV with early production • Increase NPV with fast recovery • Increase NPV with more oil/gas recovery • Increase NPV with reduced CAPEX and OPEX

5. Shorten the investment time • Quick regulator and partners approvals • Quick Design and Engineering • Quick Equipment Manufacturing, delivery and installation • . Wells construction and subsurface equipment installations

6. How does real time information shorten well construction time? • Reduce well placement time • Drill the hole to target reservoir at first trial • Avoid high pressure zones which increase drilling risks • Use reservoir illumination on first wells to optimize placement of future wells. • Reduce drilling time • Real time feedback on formation, ECD, gas count, mud losses to optimize drilling practices. • Collaborative work space to speed up the decision making process • Where to core? Where to put the casing point? When to stop? • Is the right tool run? Is the tool calibration done properly? • Is the data interpreted properly? • Reducing completion time • Where to perforate? • Gravel placement / Stimulation design and execution monitoring • Crisis management • Equipment failure • Contingency

7. Geosteering of horizontal drain Driver: work in a collaborative way to optimize the position of the drain Real time drilling center Norway

8. Aberdeen UK:Improve drilling efficiency in the north sea

9. Well testing in India Location: Deep Water East coast, India. Remote Center: Onshore Center - Mumbai Case: Evaluate commerciality of a potential gas reservoir • It involved surface readout of pressure below the downhole DST valve using the DataLatch* electrical wireline downhole recorder and transmitter system. • Real-time data allowed for quicker response and better decision-making. • Effective communication between engineers at the wellsite and the onshore center. “This was the first time that this type of data transfer for a DST was attempted in any of our wells. We all appreciate the Schlumberger effort for providing real-time data through its InterACT system to our office. The implementation of real-time data transfer was very productive, and we would like to use this process again in the future.” Customer Reservoir Department

10. $ Investment time Production time Do you know what your well is producing right now? Do you know your wells problems, right now? Can you regulate your production right now?

11. Optimize the Production Time • Accelerate production • Reduce down time • Identify and fix problems wells • Optimum utilization of down hole equipment to reduce failures. • Extend the completion life

12. How to Optimise the Production • Onshore “control centers” improve daily reservoir and field asset management • Capable staff focus on high-potential issues and complex problems • Continuous data from many sources is managed and integrated into reservoir and economic models • Sub-surface model refreshed with new information and knowledge • Early identification of discrepancy between real and simulated data

13. ProductionWatcher* Diagnostics – eg, PTA, Nodal Analysis e.g. Recommendation: Acidize for an additional 500 bopd

14. The Digital Oilfield Schlumberger Information Systems & DCS Real Time Reservoir Management: The Enabler The focus is on increasing hydrocarbon recovery factors from 25% to 40% or more.. • By improving reservoir imaging and characterization • By monitoring the reservoir response and the ability to control the well real time. • By using information management systems and the relevant technologies • By facilitating decision making with the use of expert software, visualization and collaborative work environments

15. Real time decision making workflow Action Monitoring Data Transmission Instructions Decision- making Data Manipulation and Storage

16. Reservoir / Well Restrictions Monitoring, Control and Surveillance Field Development Inefficiencies Completion Inefficiencies Uncontrolled Shut downs Gathering Bottlenecks/ Process Inefficiencies Scheduled Maintenance Controlled Shutdowns Production Optimization Reservoir Optimization Oilfield Assets: Challenges and Potential True Economic Field Potential Actual OutputToday

17. Real time information today is a reality Rate of adoption of the technology is slow Africa needs it most to develop frontier opportunities Support from government and regulators is essential