Maximizing profits through facilities
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Transcript of Maximizing profits through facilities
Sarah TamilarasanCarrizo Oil & Gas
Maximizing Profits Through Facilities
Analyzing Methods For Optimizing Integration Between Production & Facilities To Design Facilities Capable Of Handling Different Drilling Schedules & Artificial Lift Strategies Whilst Maximizing Profitability
Why is it important?
BOPD of Shale wells
Drill schedules, acreage position
Sustain economics oil prices < $80/bbl
How can we do this?
Execute Cost /
Schedule driven
Facilities
Target 99% uptime
Facilities driven by Acreage, Drill/Frac
strategy, IP rates
Facilities driven by Acreage, Drill/Frac strategy, IP rates
Acreage position/Lease Obligations
Facility 12,000 bbls/day
Drill over 3-5 years. 100+ wells
10,600 acres
470 acres
Facility 2,500 bbls/day
Drill over 2 years. 8 wells
Drill/Frac Schedule
• Typically 1-3 wells, Max 2000 bbls/day• Consider adding trains based on
frequency of rig
Lease holding or Pilot wells
• Depends on size of acreage, typically 5,000-10,000 bbls/day
• Acreage position might not be continuous
Acreage development
• Facility size should be driven by IP rates• IP rates for 2, 3 or 8 wells vary
considerably. 1000-4000 bbls/day
Wells on a pad?
Operator Friendly Facilities
• Can it be supported by the Operations team efficiently?
• Have equipment that might be bypassed?
Engineering Design
• Easy to trouble shoot and diagnose operational issues. Get buy in from Operations during design phase
Trouble shoot
• Example: Consider (2) 48” separators to process 4000 bbls/day vs (4) 36” separators
• Example: Dual dumps, 2” vs 3” dumps
Maximize Utility
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.05000
OilOil2
Month
Barr
els o
f oil
per M
onth
Undersized FacilityLoss of approx. $180,000 per Facility
• Undersized facilities curtail production, retention time
• Oversized – increases possibility of gas entering tanks
FacilitiesUndersized?Oversized?
Advantages of 25% additional capacity
•Well produce at rates higher than expected
Well Production exceeds
projections
•Accommodates slug flow•Slugs level out with the dual separatorsWell flow
•With Production declines, additional wells can be accommodated with existing facilities
Accommodates changes in
drilling/completions
System Pressure Management
100-120 psi
4-8 oz
70-80 psi>100 psi
55-60 psi
Execute Cost/Schedule driven Facilities
Company A Carrizo Company B0
500000
1000000
1500000
2000000
2500000
3000000
3500000
ConstructionMaterialsDesign
Spent 50% < Company A
Get an advantage on cost
Buy in from onsite team, vendors • Materials 30%
lower than industry
Research/Implement cost effective design • Wireless I&E 150k
vs. 700k savings over 78%
Increase productivity• Construction –
600k vs 2M-3M, 80% savings
Tips to control Costs/Schedule
Forecast materials 6-10 months in advance
Minimize/eliminate changes in the field by combining design/Hazop reviews. Rework can lead up to additional 2M in labor
Practice SIMOPS - i.e. Flow lines/Facilities in place prior to Frac
ROW requests to Land 45-60 days in advance
Target 99% uptime
Reduce Downtime
•Production declines, compressors might need to be downsized to keep wells online•Consider routing additional wells to existing facilities to maintain retention time
Evaluate Facilities 3-6
months
•Periodic pigging will keep the flow lines/gas line in operation•Build in redundancy•Scheduled testing pnuematic systems, I&E equipment
Implement Maintenance
program
•Get feedback from field operations•Make required design changes to resolve reoccurring operational issues•Roll out custom solutions
Prioritize Operational
issues
Questions?