Classification: Statoil internal Status: Draft Skinfaks/Rimfaks IOR – Strong H orses in The...

Classification: Statoil internal Status: Draft

Skinfaks/Rimfaks IOR – Strong Horses in The Gullfaks Family

Sandsli, 8.februar 2005

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Skinfaks/Rimfaks IOR. RES/PRO-seminar, 23.-24.November 2005.

Skinfaks/Rimfaks IOR (SRI) – strong horses in the Gullfaks family

Topics to be covered:

•Seismic amplitudes in exploration

•Existing technology to reduce cost and increase reserves

•Production technology issues

•Examples of flexibility built into the concept

•Lessons learned

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Situation in year 2001:

Rimfaks Brent: Production start year 2000. Spring 2001: IOR possibility documented, 2 infill wells + extra gas handling capacity gives 2.1 MSm3 of extra oil.

GF Sør L+M templates, prod.start Sept.2001. 3 flowlines to GFC for GF Sør Brent gas production. Extra capacity and tie-in possibility at L/M for upsides in GF Sør Field.

Prospects defined in the Brent Gp. and Statfjord Fm. in the Ole, Dole and Doffen (ODD) segments. (Later named Skinfaks.)

The SRI team also matured the Gulltopp (Dolly) discovery to PDO level in 2003

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Proven segments: N2 and N3 Upper Brent • Prospects:

N4 upper Brent. P(f): 97%N5 upper Brent. P(f): 80%N1 upper Brent. P(f): 90%

Prospects: N4 lower Brent. P(f): 56%N1 lower Brent. P(f): 46% (defined in 2004)

N1 Statfjord. P(f): 40 %N4 Statfjord. P(f): 90%

Exploration well in ’Dole’(N3) and ’Ole’ (N2) segments drilled in spring, 2002

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J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.

33/12-8SDG1 team establ.

Rimfaks Brent IORStatic (G&G) model used:

Dynamic (res.) model used:

Elements included in production strategy:

3D IRAP RMS (built 2001)

3D Eclipse 300 (PDO mod.) 3D Eclipse 300 (new model, built 2002)

- 2 infill wells.- 3 MSm3/Sd ekstra gas pr.- Gas reinjection, blowdownfrom oct.2010 (PDO strategy)

3. infill well, with DIACS

3 -> 4MSm3/Sd extra gas prod.rate

SkinfaksStatic (G&G) model used:

Dynamic (res.) model used:

Elements included in production strategy:

2D IRAP Classic + GeoX

Field analogue + MBAL models

3D Full Field Eclipse 100 (Brent reservoir)

- 5 conventional, horisontal wells.- Depletion

- Water Injection DIACS

compl.

3D IRAP RMS

- Gas Injection

XX

Gas lift

Segm.N1 UB incl. in ’basis’

- N1 UB and N4 Statfj. excl. from ’basis’

- Wells: 1 + 1 ML + 1 sidetr.

Volume reduction (significant!)

DG1, DG2 and DG3 are decision gates in Statoils project development model

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SatellitePhase 2

Pipeline 8” + umbilical

Gullveig

GFA

K

Rimfaks

J

GFB GFC

pipeline10”

G

F

E

D10.5 km

Gullfaks South

I

HStatpipe30”

Ole/Dole/DoffenPhase 1 & 2

4.5 km

IOR Gullveig/Rimfaks

2 km

Pipeline 10”+ umbilical

Pipeline

Umbilical

Spool

MLSatellite

Phase 2

Pipeline 8” + umbilical

Gullveig

GFA

K

Rimfaks

J

GFB GFC

pipeline10”

G

F

E

D10.5 km

Gullfaks South

I

HStatpipe30”


4.5 km


2 km


Pipeline

Umbilical

Spool

ML

Gullveig

GFA

K

Rimfaks

J

GFB GFC

pipeline10”

G

F

E

D10.5 km

Gullfaks South

I

HStatpipe30”


4.5 km


2 km


Pipeline

Umbilical

Spool

ML

Gullveig

GFA

K

Rimfaks

J

GFB GFC

pipeline10”

G

F

E

D10.5 km

Gullfaks South

I

HStatpipe30”


4.5 km


2 km


Pipeline

Umbilical

Spool

Pipeline

Umbilical

Spool

ML


A Gullveig Statfjord well was a part of the project in the DG1 and early DG2 phases. Later excluded.


2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.

33/12-8SDG1 team establ.

Feasibility study phase

Project feasible. Establish project team. Go on with concept (screening) studies.

DG1/BoK concept:

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2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.

33/12-8SDG1 team establ. Scr.

ph. 1

Skinfaks

Rimfaks IOR

4 GF-concepts evaluated:

Continue with optimising concept ’D’ for a final concept selection (AP1 – Approval point 1).

Screen.phase 2

Scr. ph. 3

Gulltopp GFA

GFC

L/M

’A’ ’B’’C’

’D’


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Wells and pipelines in a network

PROJECT

Facility (Subsea) Drilling, Well and Production

Technology

Petroleum Technology

DisciplineLeaders:

Tools: OLGA GAP/PROSPER ECLIPSE W. NETWORK OPTION

Flow assurance ”Nodal analysis” Reservoir simulation

For the SRI project: Skinfaks and Rimfaks wells prognosed with very different tubing head pressuresImpact on production profiles Decision: Two flowlines instead of one, from the SRI prod.system.


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The SRI Core Team

”The SRI Technical Forum”

”The Technical Forum”: -Project members from all engineering disciplines (Reservoir, ProTech, Drilling, Completion, Flow Assurance, Subsea, Pipeline,Topside)

- A leader was appointed

- Meetings were held regularly (every week)

Which tasks do the other persons

have ?

How are my data used ?

Possibilities? Limitations?

Consequences?

Concept screening/selection

Design Basis Document

Technical solutions

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2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.


ph. 1

9 variants of concept ’D’ evaluated:

- 1 or 2 templates, 1 or 2 flowlines, with or without smart wells.

-Selection criteria:- NPV (and then IRR and NPV/CAPEX discounted)- Robustness (drilling), and flexibility wrt. upside volumes

Recommendation, AP1, end of october 2003: Concept ’3S’ (2 templates, 8 slots, 2 flowlines, smart wells (DIACS, one ML):

Screen.phase 2

Scr. ph. 3

Scr. Ph. 4

“-8S”

“Opt.”

RF Lunde

“RF”

J RF Cook

“-8S”

“Opt.”

RF Lunde

“RF”

J RF Cook

To L/M

Recommendation from Project end of November.2003: Postpone DG2/BoV. Improve concept and economics.

BUT: Further work the following weeks weakens the project economy significantly: Cost increase (rock dumping, pilot well in segm.N4), delayed prod.start (Jan.06 => Oct.06).

’Basis’ well ’Upside’ well


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RF Lunde

J RF Cook



2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.


ph. 1

11 variants of concept ’SRI to GFC via L/M’ (re)evaluated: - 1 or 2 templates, + 1 or 2 satellites, 1 or 2 flowlines.

- Further optimising of subsea wellhead locations and subsea/pipeline cost.- Increased volumes (3.RF well, Skinfaks N1 segment, Skinfaks gas lift)

-Upside volumes quantified, value (risked) calculated.-Selection criteria: NPV (and then IRR and NPV/CAPEX disc.)

Screen.phase 2

Scr. ph. 3

Scr. Ph. 4

To L/M

Recommendation from Project, February 2004: Optimise concept ’2SX’ (1 template, 1 satellite, 2 flowlines) further towards DG2.

’Basis’ well ’Upside’ well

Scr. Ph. 5Feasibility study phase

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Scr. Ph. 6 .



2002 2003 2004

DG1(BoK)

DG2(BoV)

DG3(BoG)

PDOdel.


ph. 1Screen.phase 2

Scr. ph. 3

Scr. Ph. 4

Partners approved concept 2SX (AP1/DG2), September 2004

Scr. Ph. 5

Discussion with partners on ’low cost’ alternatives:

- Early in the concept selection phase (spring 2003), alternatives for SRI based on re-use of existing infrastructure (I, J, K templates) were briefly reviewed from the operator and put behind for specific reasons, but without any formal process or documentation.

- Now, license partners want to compare concept 2SX with other alternatives, making use of existing infrastructure:

-38 (!) combinations/variants were evaluated

- Screening criterion: NPV. In addition: Relative value (NPV/CAPEX disc.), IRR, technical maturity and risk, and flexibility for realising upside volumes.


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Statoil’s Project Development Model,Planning Phase:

After AP1, your influence on the concept as subsurface engineers is very much reduced.

Formal requirements for uncertainty analysis on volumes and production profiles.

At AP1, concept selection point: Important with a good picture of the resource potential in the area.

In Statoil’s governing documentation (AR05 ++) the focus on AP1 seems less than on the formal approval point DG2 (provisional project sanction).

Classification: Statoil internal Status: Draft

This development benefits from flexibility in existing infrastructure

Providing additional connection points for potential future developments at a low pre-investment cost

- PDO delivered Dec.2004- PDO approved Feb.2005

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NPV in MNOK05 has increased with a factor of 3-4 since the PDO

- 1/3 of effect due to increase in oil production volumes- 2/3 of effect due to increased prices on oil and gas

Reserves and

CAPEXPDO 2020

CCE-2 Upd 2020

Oil (MSm3) 5,71 6,21

Rich gas (GSm3) 2,58 2,57

CAPEX (MNOK05) 3432 3588

UnitCut-off year

2020

b.tax a.tax

NPV 7% MNOK 05 5 572 1 349

Break even price, oil

USD/bbl 9,0 10,3

IRR % 73 33

Reserves and CAPEX (cut-off year 2020)(CCE-2 is last project update, per September 2005)

Results, CCE2 (upd. cost, plan and volumes)

Delta production profile (pr year)

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year

MS

m3 (

oil)

/ G

Sm

3 (

gas)

Gas

Oil

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Skinfaks/Rimfaks IOR – strong horses in the Gullfaks family

Lessons learned:

1. Combining infill drilling (IOR) and new disoveries can make a profitable project.

2. Involve the license group EARLY in the concept selection phase.

3. Document also ‘obvious’ choices wrt. concepts screended out.

4. The focus on the concept selection point (AP1) should be stronger in Statoil’s governing documentation, wrt. line and partner involvement.

5. Create a technical forum for continuous, cross-disciplinary discussions ‘on working level’ (not only at core team level).

6. Define and place the ‘system responsibility’ role early. Make sure that various models (wells - pipeline network) are consistent.

7. Strive to get flexibility included in the concept. It will most certainly pay off!

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