FieldDevelopmentPlan

Course Objective

Learning Objectives

Pre-requisites

At the end of the training the attendee will be able to identify the practices related to field development plan projects

1. Participants will learn and understand how to have an integrated view of the hydrocarbon production system, identifiying its uncertainties and opportunities.

2. Know the concept and elements of Front-End-Loading (FEL), Decision Scenario Optimization (DSO), Integrated Asset Modeling (IAM).

3. Identify the elements of a Field Development Plan and Production Operations, and how the FEL methodology can be applied in real life projects.

4. Understand the drivers to execute such methodologies.

5. Understand the differences with Integrated Studies and Reservoir Characterization

6. Identify the need for Uncertainty Analysis, Correlation Analysis, Tornado Charts, Montecarlo Simulation, Optimization, and Optimization under Uncertainty.

7. Learn to use the basic techniques required.

1. Attendants should have an background in Engineering (Petroleum, Mechanical, Electrical or Chemical) or Sciences .

2. Attendants should be familiar with the components of a petroleum production system.

3. Ideally, attendants should have some basic knowledge of statistics for engineers.

Investors set oil company valuations in part on the

company’s ability to design and execute

credible field development plans.

As a result, oil and gas company management is

under increasing pressure from investors to translate discoveries into cash flow

as quickly as possible.

On the other hand, growing field complexity

in many parts of the world has made field

development plans (FDPs) increasingly

difficult to formulate and execute.

Industry studies have shown that FDPs

routinely over-estimate field production rates and

ultimate recovery due to causes ranging from poor

initial characterization of the reservoir to not fully

integrating available development technologies.

Training Class Syllabus

Risk and Uncertainty, FEL Methodology Concepts

Course Contents

1. Introduction to Field Developing Planning: What is Field Development? Field development processes and decisions

2. Optimization in Field Development

3. Petroleum Field Development Risk and Uncertainty • Uncertainty. Processes impacting decision making • Descriptive Statistics: mean, standard deviation, percentiles, etc. • Inferential statistics: Histograms and Distributions

4. Risk analysis with Stochastic Simulations;Uncertainty quantification by stochastic simulation (Monte Carlo) • Sensitivity diagrams vs. Tornado plot; Risk vs uncertainty

5. Front-End-Loading for Field Development • FEL (Front-End-Loading) concepts; • FEL-Visualization & FEL-Conceptualization related tasks • Uncertainty processes impacting decision making (multidisciplinary approach)

6. Decision Scenario Optimization (DSO) • Uncertainty and decision making evaluation from integrated profit models • Exercises: Optimal well number and location, optimal field development by IAM

7. History Match • Uncertainty analysis and history match assisted by technology

Instructor Dr. Luigi Saputelli,

25 years of experience in integrated reservoir and

production modeling.

Additional Support On-site one-to-one

mentoring On-the-job training Consulting advice Team Workshops

Contact Us

Frontender Corporation 8558 Katy Freeway,

Suite 103 Houston, TX 77024

+1.281.217.2783 lsaputelli@frontender.com

www.frontender.com

Schedule and Location Throughout the year.

Dates to be arranged at client’s location

preference.

Cost US$ 2,800 per student. Minimum 12 students.

Travel costs out of Houston.

FieldDevelopment Plan

Risk and Uncertainty, FEL Methodology Concepts

Pre-FEL

•Plan for resources

•Define roles

•Define success criteria

•Define models and scope

Visualization

• Identify opportunities & scenarios

•Classify risks

•Align objectives

• Identify quick wins

Concept

•Quantify economics

•Define options and portfolio

•Rank by value, risk and effort required

Definition

•Basic engineering

•Operations plan

•Risk plan

•Best practices

•Contracting

•Sanctioning

Execution

•Detailed design

•Plan and logistics

•Manage Risk

•Execution

•Supervision

•Measurement

Operation

•Track plan vs. real

•Measurement

•KPI monitoring

•Plan correction

FEL Phases: Identify & evaluate options Design and materialize options

% of Capital Investment

Diminishing abilityto influence on Value Creation

Is it feasible?Is it the best scenario?

Work quality and economics ok?

Are objectives aligned and clear?

Technical and cost estimates Class V + 50 % - 30 % Class IV – III + 25 % - 15 % Class II + 15 % - 10 %

3-5% 5-12%12

Class Exercises

1. Oil field development (forecast and NPV)

2. Optimize Field Development Profit

3. Optimize Field Development NPV

4. Build a Frequency distribution

5. Calculate Various Frequency Distribution 6. Build a Monte Carlo Simulator in Excel

7. Calculate OOIP with Monte Carlo

8. Calculate Multizone OOIP Reserves Monte Carlo