DeclineShift Mature Asset Solution for Maximized Capital ... · DeclineShift Mature Asset Solution...

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| bakerhughes.com DeclineShift Mature Asset Solution for Maximized Capital Efficiency Extend economic viability and maximize returns

Transcript of DeclineShift Mature Asset Solution for Maximized Capital ... · DeclineShift Mature Asset Solution...

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DeclineShift Mature Asset Solution for Maximized Capital EfficiencyExtend economic viability and maximize returns

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Over time, production declines, operating

costs increase, and cost per barrel goes

up. In an effort to maintain economic

production, cost-cutting measures may

be instituted, or production enhancement

efforts may be implemented—or both.

Most often, these methods offer only a

short-term remedy to the overall trajectory

of decreasing profitability. Sooner or later—

and usually sooner—shutting in, divesting,

or even abandoning the asset, starts to

seem like the only feasible path.

However, in many cases, this decision

is made too soon. Sometimes a second

look, the right technologies and expertise,

and a strategy centered on maximizing

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1980 1990 2000 2010 2020 2030

Production from Mature Fields*

Since 2006, production from mature fields—which accounts for more than 55% of global supply—has declined significantly.

*Fields estimated to have surpassed 50% of their production life Source: Rystad Energy, Ucube, July 2015

The story of a mature asset

capital efficiency can make a difference—

extending the economic life of a mature

asset beyond what was previously

thought possible.

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The solution for a mature asset

The resulting fit-for-purpose solution offers minimal disruption, minimal downtime, minimal footprint—and maximum returns

The Baker Hughes DeclineShift™ mature asset solution is designed to help you get the most out of your investments through: nn The conceptualization, design, and surgical implementation of innovative production enhancement solutions that solve your technical, operational, and economic challenges

nn A focus on making sure that every part of the solution serves a primary purpose: to maximize capital efficiency and returns

The DeclineShift solution is based on the understanding that no two operating companies and no two mature assets are the same. That’s why, in building a solution for a particular asset, Baker Hughes takes an individual approach, focusing specifically on your asset and your objectives.

Base economic limit

DeclineShifteconomic limit

Economic cutoff

Extended economic viability

Time

Prod

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Production with DeclineShift solution

Base production

Incremental production gains

Economic cutoff

Implementing a DeclineShift solution can shift the production decline of a mature asset and lower cost per barrel, resulting in prolonged field profitability and significant incremental production gains.

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Transforming underperforming and idle assets into productive

wells can quickly boost your output, thereby increasing the

efficiency of your well stock.

It’s often possible to optimize production by rejuvenating

existing wells. In this scenario, Baker Hughes addresses the

root causes behind low performance by tactically clearing and

enhancing hydrocarbon pathways, boosting production volume

and quality, and/or increasing flow efficiency.

You can also boost cash flow without the capital expense and

time required for new wells by reactivating shut-in wells.

Baker Hughes can develop a customized plan to restore well

integrity, remediate formation damage, and/or enhance lift

efficiency and overall production.

Whether it is for a few wells or for a portfolio of wells, Baker

Hughes can help improve your well economics.

Discovery

Optimizing production from existing wellsChallenge 1Approach: Tactical selection of high-impact enhancements to accelerate production from existing well stock

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BACKGROUND AND CHALLENGESnn Surface-controlled subsurface safety valves (SCSSVs) are required in all wells nn Many valves had plugged or leaking control lines, rendering the systems inoperativenn Wells were often shut-in for long periods of time due to lengthy rig workover schedules

BAKER HUGHES SOLUTIONnn Design a DeclineShift well reactivation solution that would enable rigless operations and minimize the wellsite footprintnn Install Reconnect™ safety valve systems in two idle wells, using a DynaCoil™ thru-tubing systemnn Restore the safety barrier with the same surface control as originally designed for the well

RESULTSnn Restored well integrity without compromising surface equipment nn Performed operation in only three days without the need for a workover rig

nn Increased production from first two wells by 5,000 barrels of oil per day (BOPD)nn Immediately increased daily revenue by USD 250,000 per wellnn Accelerated payback by avoiding long workover queue nn Reduced intervention costs by 66%

Every DeclineShift solution is founded on a close examination of the areas that—

individually and collectively—have the greatest impact on your bottom line. This

examination, which fuels the development of the most capital-efficient and high-impact

solution, can range from individual well diagnostics to full-field analyses. Depending on your

needs, this examination typically focuses on three primary challenges.

Location: Abu Dhabi

Discovery The foundation of a DeclineShift solution

DeclineShift Well Reactivation Solution Restored Well Integrity and Increased Daily Revenue by USD 500,000

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Proactively managing production and facilities helps reduce

operating costs and accelerate hydrocarbon recovery, while

maximizing production volume and quality.

Better flow from the reservoir and through the pipeline means

faster and greater production revenue. Baker Hughes helps

optimize flow—from reservoir to refinery—by debottlenecking

production chokes throughout the system.

You can eliminate flow constraints and increase flow efficiency

Accessing additional hydrocarbons and proactively managing

reservoir energy and fluid flows can improve recovery factors—

increasing the total value of your asset.

Baker Hughes can help improve your reserves replacement ratio

in developed fields by assessing and accessing bypassed oil.

This starts by identifying and quantifying stranded hydrocarbons.

Then, these additional hydrocarbons can be accessed by either

tapping into new pay zones or optimizing displacement efficiency.

Extending field life is also possible by leveraging a collaborative

approach that applies Baker Hughes production technologies.

Using sound reservoir management practices (such as restoring

and maintaining reservoir pressure), managing water and

gas production, and/or monitoring and controlling reservoir

performance enable you to increase total recoverable resources

and maximize economic recovery.

by using advanced chemical services, artificial lift technologies,

and streamlined monitoring capabilities. And by applying water

management techniques, Baker Hughes can help decontaminate

returns and reduce handling costs.

Baker Hughes also focuses on minimizing downtime

by thoroughly analyzing your asset to mitigate undesirable

production of unwanted byproducts (such as sand and scale),

ensure the integrity of your asset, prolong equipment life, and/or

intelligently monitor your flow channels.

Increasing economically recoverable resourcesChallenge 3

Challenge 2 Maximizing production revenue

Approach: Prioritize operational improvements to enable effective holistic production management

Approach: Re-assess the reservoir with advanced characterization technologies to improve management of recoverable resources

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BACKGROUND AND CHALLENGESnn Large mature field in Indonesiann Wells experienced frequent workovers and lost productionnn Average electrical submersible pump (ESP) run life was less than 300 daysnn Over 90% watercut, and bottomhole temperatures up to 280°F (138°C)

BAKER HUGHES SOLUTIONnn Design a DeclineShift minimized downtime solution to improve equipment life and decrease deferred production nn Install over 1,000 Baker Hughes ESP systems and 15 rod-driven progressing cavity pump systems, with minimal disruption, to increase production and address sand, scale, emulsion, and gas lock issues

DeclineShift Minimized Downtime Solution Increased Revenue More than USD 320 Million and Saved Operator USD 30 Million

Location: Sumatra, IndonesiaRESULTSnn Enabled production of more than 10 million barrels of oil across a period of over 7 yearsnn Reduced workover rate by more than 30%, saving the operator an estimated USD 30 million nn Increased customer revenue more than USD 320 million by reducing deferred production from the top 11 wells

BACKGROUND AND CHALLENGESnn Customer was performing infill drilling to access more oil nn Standard completion design called for perforating, then “killing,” the well with high-weight fluids prior to ESP installationnn Kill fluid caused formation damage and reduced production

BAKER HUGHES SOLUTIONnn Design a DeclineShift bypassed oil solution that would increase completion efficiency, minimize formation damage, and enhance reservoir connectivity nn Combine a one-trip tubing-conveyed-perforating system with an ESP to accelerate completion time and to create underbalance in the wellbore prior to perforating nn Leverage Predator ZX™ high-performance shaped charges to extend perforations through near-wellbore damage and into the formation nn Use a Model J™ bottom gun anchor to reduce perforating shock impact on the ESP

DeclineShift Bypassed Oil Solution Surpassed Customer Production Expectations by 35%

Location: Ecuador

RESULTSnn Eliminated 10 days of rig time through single-trip perforating and completion installationnn Preserved formation integrity by eliminating the need for kill fluids and reducing gun shock impactsnn Exceeded client production expectations by 35% overallnn Virtually eliminated water production, significantly reducing produced water handling costs

Expected

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Basic Sediment and Water (BSWPD)

Oil (BOPD)

Expected vs. Actual Well Performance

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Well #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11

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Incremental Production from Top Wells

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Increasing economically recoverable resources

Approach: Re-assess the reservoir with advanced characterization technologies to improve management of recoverable resources

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Each solution begins with the

development of an accurate profile of

your well or asset. Using Baker Hughes

production and reservoir characterization

technologies, the root causes of

decreasing performance are diagnosed.

This information is leveraged to design

efficient solutions—applying only the

needed technologies—to maximize

immediate and long-term value.

During the planning and design process,

Baker Hughes experts collaborate with

your team. This ensures that every critical

decision leverages both your asset

expertise and Baker Hughes application

knowledge and portfolio of production

enhancement technologies, such as:

nn Formation evaluationnn Drillingnn Completionsnn Artificial liftnn Chemical services

Solution designYour unique plan

Fast, precise execution

This broad portfolio, backed by extensive

expertise, enables Baker Hughes to

architect innovative and effective

solutions—based on asset potential

and cost constraints—tailored to your

specific needs. This approach helps you

address technical challenges, as well as

operational and economic challenges.

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Because each solution is surgically

engineered with precision, most

require only a small wellsite footprint.

In fact, many can be designed to

address multiple challenges in a single

operation, minimizing deployment time

and production disruptions. This helps

to accelerate payback, and grow the

present value of your cash flows.

Effectively managing wellsite operations

is an equally important part of solution

execution. If any additional vendors are

involved, Baker Hughes can coordinate

with them, and even manage the project,

to simplify the process and minimize the

burden on your organization.

Baker Hughes also tracks results, weighing

actual production and performance

improvements against the projected

results to ensure rapid adoption of the

most successful practices—further driving

capital efficiency and return on investment

(ROI) on future projects.

And, because Baker Hughes is committed

to your success, the company offers flexible

commercial models to align with your

business objectives and operational needs.

Fast, precise executionThe Path to ROI

Efficient and effective field

execution is the final, crucial step

in the DeclineShift process. First,

every element of the operational plan is

documented and reviewed to ensure safe,

reliable, and efficient execution.

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Location: Latin America

BACKGROUND AND CHALLENGESnn 80-year-old giant field is one of the most

complex in the worldnn Reservoir rock quality is highly variablenn High development costs, low recovery

BAKER HUGHES SOLUTIONnn Design and implement a DeclineShift solution, developing

and prioritizing the portfolio of production enhancement

opportunitiesnn Assume management of the field, including all technical and

operational aspects nn Leverage precise target characterization technologies; create

more streamlined well designs; and enable self-powered pads,

using well’s gas supply to improve capital efficiencynn Drill and complete 30 wells, perform 36 recompletions and 86

workovers, and fracture 77 wells nn Utilize remote-operations services

RESULTSnn Increased field production by 300%nn Reduced monthly production decline rate by 43% nn Lowered production and field operation costs by 57% nn Delivered 83% of wells ahead of plan

Production from an 80-year-old field in Latin America was

declining by 6% monthly, and new development wells were costly.

Previous revitalization attempts were ineffective, so the operator

contacted Baker Hughes to request a customized solution,

including integrated field management.

Working closely with the operator’s teams, Baker Hughes designed

and executed a holistic DeclineShift mature asset solution over

a three-year period. The solution included a broad mix of fit-for-

purpose technologies and services.

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Field Lab – Production PerformanceNew wells

Minor Workover

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DeclineShift Solution Increased Production in Mature Field by 300%, Lowered Costs by 57%, and Reduced Decline Rates

A DeclineShift mature asset solution significantly increased production, reduced costs, and extended the economic viability of an 80-year-old field.

Once the solution was implemented, production increased from

2,600 to 10,500 barrels of oil per day in the first 12 months,

and operation costs* dropped from USD 4.38 per BOE

to USD 1.86 per BOE over the first 18 months. An additional

20,000 barrels of incremental production were realized through

strategic well completions and interventions, and the monthly field

production decline dropped to 3.4%.

This consistent focus on capital efficiency yielded precise, technical

solutions to lower cost per barrel and reduce overall field decline,

successfully extending the economic life of the asset.

*Excluding major operating and maintenance costs.

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Efficient and effective use of your capital can significantly shift the life of a mature asset

beyond its current trajectory.

The DeclineShift solution for mature assets delivers efficient use of your

capital, increased production, and prolonged recovery. This is possible

by combining fit-for-purpose technology with the right strategy—one that

considers the impact of every detail of your DeclineShift solution, from

design to execution, as it relates to your bottom line.

Don’t accept the trajectory you’re on. Let Baker Hughes

maximize your capital efficiency—and your returns—

with your very own DeclineShift solution.

Visit bakerhughes.com/DeclineShift

DeclineShift Solution Increased Production in Mature Field by 300%, Lowered Costs by 57%, and Reduced Decline Rates Maximized

capital efficiency The end game

for more detailed information about our mature asset solutions.

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© 2015 Baker Hughes Incorporated. All rights reserved. 43464 11/2015

Disclaimer of Liability: This information is provided for general information purposes only and is believed to be accurate as of the date hereof; however, Baker Hughes Incorporated and its affiliates do not make any warranties or representations of any kind regarding the information and disclaim all express and implied warranties or representations to the fullest extent permissible by law, including those of merchantability, fitness for a particular purpose or use, title, non-infringement, accuracy, correctness or completeness of the information provided herein. All information is furnished “as is” and without any license to distribute. The user agrees to assume all liabilities related to the use of or reliance on such information. BAKER HUGHES INCORPORATED AND ITS AFFILIATES SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES FROM ANY CAUSE WHATSOEVER INCLUDING BUT NOT LIMITED TO ITS NEGLIGENCE.

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