UCSINW FIELD Pre-Problem Statement The field was first produced on the 1 Jan 2010. History matching was done from the observed production rate till end of year 2013. Your company is a contractor doing reservoir engineering study of this field. You have been asked to determine the best future operating scenario for this field. The objective is to maximize the economics (NPV). You have determined the PVT, grid, etc for this field and had completed the history match from the 4 years initial production period. Now it is the time to make predictions and determine the best operating scenario. At the end of the initial 4 years of production period, the oil in place is approximately 22.8 MM STB. The owners have decided to produce this field for another 25 years. Due to surface facilities and other limitations, the oil production needs to be limited to a plateau of 2,300 STB/day. The field's pipe line can handle a maximum oil rate of 2,300 STB/day. During the history no rate optimization was used. The seven oil producers had initial oil production in the range of 300-350 STB/Day. Your company's contract allows you to begin field production 1 January 2014. You may start drilling wells today and start new well production/injection on 1 January 2014. Your contract finishes at the end of 2039 – the field must be shut-in at this point. Starting from 1 Jan 2014, you can; 1. Start injection – water, gas, WAG 2. Add producers 3. Convert producers into injectors 4. Change well rates, BHP, etc. 5. Implement EOR a) The Foam Model (Gr.1) Chapter 22 b) The Alkaline Model (Gr.2) Chapter 3 c) The Polymer flood Model (Gr.3) Chapter 52 d) The Solvent Model (Gr.4) Chapter 64 e) The Surfactant Model (Gr.5) Chapter 66 Economic Consideration • Wells shut-in at min oil rate = 35 STB/day, water cut = 0.8 • Field shut-in at minimum oil rate = 200 STB/day • These conditions are not optimized. • You may change them as you optimize your predictions. • During the prediction phase you may vary or increase individual well's rate as long as the total oil rate is at or below well the 2300 STB/Day. • Since there is a monthly operations cost, if you can operate the field a shorter time, the total operations cost will be reduced. The key is to maximize the cumulative oil and gas produced during the prediction phase, minimize the costs and minimize the time of operation – this will then maximize the profit. WECON and GECON have minimum oil rate and maximum water cut – feel free to change these in your predictions. Note if you increase the max water-cut to, say, 0.99 then a large amount of energy (water volume) is being produced. Note – minimum oil rate should be set so that you do not run the field at a negative NPV. Objective of the prediction simulation The owner/operator has decided that the objective is to maximize the Net Present Value (NPV) of this oil and gas field. The economics will be calculated on a spread sheet provided – details of the economic calculations (oil price, inflation, cost of new vertical and horizontal wells, etc) will be described later. Basically you can do whatever seems reasonable to maximize the NPV. An excel spread sheet is provided to calculate the costs and income. • Called: Economic Calcuation.xls. It's excel spreadsheet with economic calculations for Net Present Value (NPV) and incremental NPV (requiring input of number of new wells/type, total injected gas/water, CO2/N2 production, cumulative gas/oil/water which can be read from ECLIPSE output) • Basic data is entered into the Cover Page • Results are shown on the Net Income Summary Page • Key results are Net Income/Profit and Net Incremental Income / Profit (over base case) – Both results should be reported to management (be shown in your presentation). • The oil/gas price increase (with time) = rate of inflation =interest rates (cost of money) – THUS there is no discounting of oil/gas production – a simple excel spreadsheet will allow the calculation of economics. • Values entered into the spread sheet will be final cumulative volumes or moles injected or produced (read results from your ECLIPSE run and then check the economics). Components of the Economics Calculation – Summary (by group leader) 1. Monthly field operating cost 2. New well drilling and completion costs 3. Injection well setup costs 4. Water injection costs 5. Chemicals injection costs 6. Water Production/Separation/Disposal costs of water is injected during prediction. 7. Oil production income 8. Gas production income Individual assignment: 1. Will be assigned later Model Description 52 x 36 x 13 layers (24,336 grid cells) 7 oil producers 2 gas producers Run for 10 years prediction with FOE of 24% (1 minute simulation run time) Initial reservoir pressure is 5287.64psia at GOC GOC = 3070ft WOC = 3390ft Initial Oil In-place = 26 MM stb PVT and saturation data: as in CASE 1 Reservoir Model (stored in UCSINW.GRDECL) Porosity (stored in PORO.GRDECL to replace porosity in CASE 1) Horizontal & vertical permeability (stored in PERMXYZ.GRDECL to replace porosity in CASE 1) NTG (stored in NTG.GRDECL to replace porosity in CASE 1)